Answer to Question #171597 in Economics for Tanvi

Question

identify two methods of protection

Answer 1

The two methods of protection in trade are tariffs and quotas. Tariff is a tax of duty that imposed to rise the price of imported products and causes a contraction in domestic demand and an expansion in domestic supply. Quotas are quantitative limits on the level of imports allowed or a limit to the value of imports permitted into a country in a given time period.