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BaronVonServers

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Reply with quote  #76 
Quote:
Originally Posted by Ethiomonarchist

Quote:

Quote:
Originally Posted by Ethiomonarchist
Quote:
(protectionism erects barriers at the international border, it does NOT erect them within the nation).

 


Actually this is not true Baron.  Protectionism is not limited to barriers at the border.  This case is also protectionism as the intention is to keep prices for domestic products low through subsidies so that imports cannot compete. It protects domestic producers from loosing money by selling below high local production cost in order to compete with foriegn producers who have lower production costs.


Subsidizes aren't part of 'protectionism' - but of a 'directed marketplace' (socialism/communism).  They are attended by quotas which prohibit others within the nation from entering the lucrative markets those created.  The 'subsidy price' isn't available to all providers, but only to those favoured by the government.

 


Baron you are narrowing the field here to fit your definition.  You are talking about a certain instance.  Generally however, around the world, subsidies of this type are put in place to help domestic producers compete against foriegn producers of what ever goods are involved and are thus absolutely protectionism.  The U.S. complains about this practice all the time in the World Trade Organization (although it does engage in this practice itself).


Are you saying subsidizes are available to any willing provider?

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