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Correct me, please! Thank you! :) There are two arguments: "imports should be reduced because money is going abroad which would be better spent at home" and "we should protect our industries from being undercut by imports produced using cheap labour". I think that these arguments both right and wrong at the same time. Firstly, it is known that import is a part of free trade which are necessary for every state, because it helps them getting richer. But actually it is important to decrease imports not in order to save money at home, but in order to develop its own production. For instance, Russia faced with such problem when many countries have imposed trade sanctions on her. Subsequently imports reduced and became unprofitable, and therefore Russia began to introduce new quotas on imports and exports for the formation of a domestic manufacture. Secondly, there are many opinions that government should block imports produced using cheap labour. Because often such products manufactured by unskilled workers and material quality level is too low. But not always cheap labor means poor quality goods, because, for example, in some Asian countries labor is cheap due to economic reasons, but that does not mean that they produce a bad product.
1 czerwca 2016
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Correct me, please! Thanks! 1. There are 2 different trends in the world trade: liberalization and protectionism. Liberalization leads to reduction of customs duties and the abolition of restrictions and quotas. Protectionism keeps tariffs high. Also some countries use non-tariff barriers like subsidies, the introduction of standards and norms, licensing and other. 2. World Economic Organization like WTO have a big role in the regulation of international trade. For instance, WTO provides non-discrimination in trade.
1 czerwca 2016
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