Ahmed Shaqo
Business Economics GM545
Spring session A 2012
Adam.gmail.com

Chapter-25 question 14
Why might protections trade barriers not save American jobs or benefit the economic? First of all I would like to defined what protection trade barriers means, it’s a measure that government or public authorities introduce to make imported goods or service less competitive than locally produce goods or service. The government has much way to apply trade barriers such as Tariffs, quotas, embargoes, license required, and regulations establishing health and safety.
Protection trade barriers does not save American jobs or benefit the economic for a several reasons: 1- It would cause a limited choice of product and would therefore force customer to pay higher prices and accept inferior quality, for example Tariffs are taxes will increase the imported products’ price which has the same quality as goods produce by local suppliers that will cause the customer to pay more for product he could have it for cheap price. 2- Quotas is a legal limit on amount that can be imported, which may cause raise price on the foreign product, , for example if we import ten million technology product from china every year that mean we need this amount because is cheaper and has good quality’s. Government put a limitation for import technology product from china to five a million part a year, that will make this particular product cost more money, because the foreign country knows that we need this product, and will raise the price. Base on that we pay extra for product we could have it for cheaper, the extra expense will go to the foreign country not for our government like tariffs. 3- Competition is very important to encourage local industry to improve their product without competition; companies within the industry won't innovate and improve their products or services.