Saturday, 19 September 2009

Protectionism and Tyres


Barack Obama has just introduced a tariff on tyres coming from China.  Here is a good article from the Economist on the reasons behind it.  The Economist, being a great fan of free trade, is furious.  It argues that protectionist measures lead to higher prices for consumers and could lead to retaliation from China as well a whole host of other inefficient industries wanting similar protection from foreign competitors.  This is good reading for the Upper Sixth, who will tackle trade in the new year.

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