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Is their any disadvantage to a government subsidizing domestic firms to make them able to compete in price with cheaper imported goods?
Wiki User
∙ 10y ago
Some positive elements are that it helps domestic consumers, firms and, workers. However, it could lead to inflation or an overall increase in price of products across all sectors. People may also end up paying higher taxes on goods.
Wiki User
∙ 9y ago
Wiki User
∙ 10y agoThe most obvious disadvantage is that it decreases efficiency.The most efficient producer is the one who can produce for the least cost. Subsidizing domestic industry shifts the production to a less efficient producer. The cost is ultimately borne by the taxpayers that fund the subsidy, leading to decreased purchasing power. Subsidizing domestic industries typically leads to a very short-term boost to the targeted industry, followed by a longer-lasting hardship by the economy as a whole. This is to say nothing of the negative effects on the foreign economy.
A second disadvantage is that protectionist actions often lead to retaliation-in-kind by the foreign government. This can severly harm domestic exports in totally unrelated industries, especially if a "trade war" continues to escalate.
Wiki User
∙ 10y agoThe disadvantage of a government subsidizing domestic firms is that this move may discourage investment of the foreign firms which may have offered better services and employment opportunities.
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Is there any disadvantage to a government placing a tariff on imported goods?
Yes, the main disadvantage of a government placing tariffs on imported goods is increased cost and a possible retaliation tariff from the exporting country. Tariffs make the goods more expensive for the consumer.
Is there any disadvantages to a government placing a tariff on imported goods?
Yes, the main disadvantage of a government placing tariffs on imported goods is increased cost and a possible retaliation tariff from the exporting country. Tariffs make the goods more expensive for the consumer.
Is there any disadvantage to government placing tariff on imported goods?
There are several disadvantages to governments placing tariffs on imported goods. For example, countries may not want to import goods if they have to pay a tariff, and this process raises prices for consumers.
Is there any disadvantage to a governmeant placing a tariff on imported goods?
Tariffs on imported goods may cause economic problems. One problem is that it makes the price of imported goods for persons wishing to buy them more expensive. Another problem is that domestic industries protected by tariffs can over price their products to a level just below the price of the tariff stricken imported products. Additionally, protected domestic industries are less likely to invest in technology to make their products more efficient and less costly.
What protects domestic producers from foreign competition?
Tariffs on imports will raise the price of imported goods so that domestic substitutes can be cheaper. Import quotas allows a limited number of imported goods into the country. Trade embargoes is a extreme case where no imports are allowed.
Is there any disadvantage to a government subsidizing domestic firms to make them able to complete in price with cheaper imported goods?
Some positive elements are that it helps domestic consumers, firms and, workers. However, it could lead to inflation or an overall increase in price of products across all sectors. People may also end up paying higher taxes on goods.
What is disadvantages to a government placing a tariff on imported goods?
I think there is no disadvantage
Is there a disadvantage to a government placing a tariff on imported goods?
Yes, the main disadvantage of a government placing tariffs on imported goods is increased cost and a possible retaliation tariff from the exporting country. Tariffs make the goods more expensive for the consumer.
Is there any disadvantage to a government placing a tariff on a imported goods?
Yes, the main disadvantage of a government placing tariffs on imported goods is increased cost and a possible retaliation tariff from the exporting country. Tariffs make the goods more expensive for the consumer.
Is there any disadvantage to a government placing a tariff on imported goods?
Yes, the main disadvantage of a government placing tariffs on imported goods is increased cost and a possible retaliation tariff from the exporting country. Tariffs make the goods more expensive for the consumer.
Is there any disadvantage a government placing a tariff on imported goods?
Yes, the main disadvantage of a government placing tariffs on imported goods is increased cost and a possible retaliation tariff from the exporting country. Tariffs make the goods more expensive for the consumer.
Is there any disadvantage to a government placing a tariff on imported good?
Yes, the main disadvantage of a government placing tariffs on imported goods is increased cost and a possible retaliation tariff from the exporting country. Tariffs make the goods more expensive for the consumer.
Is there any disadvantage to a government placing a tariffs on imported goods?
Yes, the main disadvantage of a government placing tariffs on imported goods is increased cost and a possible retaliation tariff from the exporting country. Tariffs make the goods more expensive for the consumer.
Is there any disadvantages to a government placing a tariff imported goods?
Yes, the main disadvantage of a government placing tariffs on imported goods is increased cost and a possible retaliation tariff from the exporting country. Tariffs make the goods more expensive for the consumer.
Is there any disadvantages to a government placing a tariff on imported goods?
Yes, the main disadvantage of a government placing tariffs on imported goods is increased cost and a possible retaliation tariff from the exporting country. Tariffs make the goods more expensive for the consumer.
What is a good sentence for domestic?
I prefer domestic vehicles over imported vehicles.
Is Budweiser domestic or imported beer?
Very domestic. It is made in Houston, TX.
