Strategic reasons - reason for protection, Managerial Economics

Strategic Reasons

For political or strategic reasons, a country may not wish to be dependent upon imports and so may protect a home industry even if it is inefficient.  Many countries maintain industries for strategic reasons. The steel industry, energy industries, shipping, agriculture and others have used this strategic defence argument.


Even when a country can see no economic benefit in protection, it may find it useful to have tariffs and restrictions bargaining gambits in negotiating better terms with other nations.

Posted Date: 11/30/2012 5:00:06 AM | Location : United States

Related Discussions:- Strategic reasons - reason for protection, Assignment Help, Ask Question on Strategic reasons - reason for protection, Get Answer, Expert's Help, Strategic reasons - reason for protection Discussions

Write discussion on Strategic reasons - reason for protection
Your posts are moderated
Related Questions
State the Meaning of managerial economics Managerial economics, used synonymously with business economics, is a study of economics that deals with the application of microecono

Fall in Supply When the supply falls, the supply curve shifts to the left to position S 1 S 1 .  At the initial equilibrium price P 1 , quantity supplied falls from q 1

250 word essay: A New Hampshire resort offers year-round activities: in winter, skiing and other cold-weather activities; in the summer, golf, tennis, and hiking. The resort’s oper

Q. Example on Relationship between marginal and average cost? This relationship between marginal and average cost can easily be recalled with the aid of Fig. below. It can be s

Describe the Application of economic theories Pertinent business decisions necessitate an unambiguous understanding of the environmental and technical conditions under which bu

Kinds of Bargaining arrangements Basically there are three kinds of bargaining arrangements, namely: Open Shop: In an open shop a union represents its members, but doe

Where does the firm Operate? The firm will avoid stages I, II and III and will instead choose stage II.  It will avoid stage I because this shall involve using the fixed facto

Problems of prices and Incomes policy i. Confrontation The imposition of the prices and incomes policy, voluntary or statutory, risks the possibility of confrontation w

Explain about the Pricing analysis Microeconomic methods are employed to examine lots of pricing decisions. This includes transfer pricing, price discrimination, joint product

Calculate point elasticity of demand for demand function Q=10-2p for decrease in price from Rs 3 to Rs 2