5th – Arguments Evaluated

 Infant Industry Argument – fair, they will not become competitive.

 Source of Revenue - Generates funds for implementation of their

socioeconomic programs and projects.

 Local Employment - Local Standards, Military self-sufficiency, Balance of

trade

6th – Tariffs vs. Quotas

 Tariffs

- Cannot exactly control imports.

- Changing a tariff rate cannot accurately predict the exact quantity of imports.

- It raises the price of imports.

 Quotas

- Quantity of import goods is certain.

- More restrictive in a dynamic sense.

- Regardless of the selling price, foreign producers can only sell a specific

number of goods.