Problem

Show graphically that for any tariff, there is an…

01:21

Problem 37 Medium Difficulty

What are some ways that governments can help people who lose from trade?

Answer

Now, trade barriers are there is the losses are significantly disturbing to those few. But still trade is considered a good thing because overall gains especially in long-run are higher than the losses and trade is necessary for economic development of a nation in international markets.

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Principles of Microeconomics for AP® Courses

Chapter 20

Globalization and Protectionism

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Video Transcript

all right. So tell you when we look at some ways that governments help people who lose out from true. And although trade is generally considered beneficial to a country, many groups and many people can negatively affected by it and when a particular group is damaged by trade, is common for the government to intervene and help protect businesses who are who are affected. Right and some of those ways included. Harris right, um in terms is basically making imported goods more expensive, which makes local goods more attractive to consumers, to you, to their cheaper prices, right. And this means that domestic producers will be able to gain um, market. And compared to advantage, governments can also implement subsidies. And this is used to allow local producers to develop compete with foreign producers without losing money. Right? So the government is basically funding them to continue their operation. Teoh. It could be but the big markets and to compete with multinational corporations. Final thing governments do to help protect businesses that were impacted our by quotas right, and by establishing 1/4 the government only allows a certain number of foreign goods toe enters the country right in this benefits the local producers by ensuring there's enough demand for for the products, right, unless of internationals. These these three are mainly mainly some ways that the government helps businesses that were impacted by treat. Now, when we look at, um, businesses that failed, right? Uh, the government can do the following couple things to help the people involved in the business to relocate and find some work elsewhere. Right? And this, this includes this includes payments, okay. And this statement is mainly to those who looking to relocate and needs the money to for to fulfill the travel costs or other job related expenses. Right. So they will be reimbursed a portion, um, during their job search by the government. The next thing that the government website are reemployment services and these include resume writing classes, counseling, you know, referral anything that that the government can provide to employees to help them with their, um with their job searches. Um, next thing that the government can provide is training spring and provide training in areas where workers are required, so new skills and techniques that the employees could have easily implement into their new position. Um, it will be beneficial and ensuring that they get a position at a job. Um, more efficient. Finally, if some employees or the business owner wishes started new business, the government can provide a tr t r a stands for trade readjustment allowance. This is basically along with 0% interest, right? And this isn't just given to anyone who wishes to start a business. It is given if the government thinks of the new business was profitable. Um, and there's a profitable business plan in police, right? So these are mainly, um, ways that the government helps businesses so decided businesses, and this size employees right helps businesses and employees who are negatively impacted by trade in the next week.

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