History: Imports Of The Consumer Goods

Student’s name Course name Instructor Date History The term protectionist emerges from the effort of the US to secure the domestic producers from competition through numerous trade hurdles with the imported item utilized by the consumers. The American system is built up with a large number of the imports of the consumer goods. It imports more than any other nation in the world. With the increased import the competition of quality also increases. Nonetheless, many producers in US are not supportive of the completion with the high quality imported goods. Consequently, the policy makers aimed to protect the interests of the US produce and sought methods to overcome competition with the imports. In order to do so, barriers on trade are imposed. Although it is claimed to be an economical decision but in reality the producers that tend to gain more protection enjoys influential political ties that it can influence the policy making. In contrary, the consumers are not fully aware of the system. The efficiency and success of the system is dependent on the lack of awareness of the average American about they being charged with tax. Some part of the tax proceeds mostly goes in the pockets of the local producers and the rest goes to foreign producers. In this framework, the government of United States does not monetarily benefit. As an alternative, what the government should have collected under the tax revenue goes to the foreign producers, who will increase the prices of their goods due to quota. On average an American house hold pays $238 extra as the protectionist tax. It indicates that the tax is more than six percent of price of the product that is bought. From the consumer point of view, the protectionist approach is not efficient and it exploits the citizen of its own country thereby profiting foreign producers. The protectionist approach is condemned ...