Costs and Benefits of Quotas Student’s Name Professor’s Name Course Title Date of Submission Introduction The American markets were threatened by the entry of foreign products into their markets. The federal government put in place measures that would reduce the dominance of international companies through the implementation of quotas. Quotas refer to a fixed number of commodities that are allowed through putting in place regulatory mechanisms to reduce overcrowding of the products in a single marketplace (Blonigen et al. 2013). Quotas have a significant impact on some products that enter a particular market. During the early 1980’s the American nation enhanced the aspect of restraining its exports through an agreement pact that was aimed at regulating its competition across the international markets (Gandolfo 2013). Further American endeavored to protect its local markets that were possibly going to be lost to the foreigners who had taken a substantial control of with unrealistic policies in a bid to protect the domestic industries despite the possible retaliation by other established companies in Japan. Although the protectionism policy is in effect it has failed to achieve the intended targets for the local manufacturing sector. References Blonigen B. A. Liebman B. H. Pierce J. R. & Wilson W. W. (2013). Are all trade protection policies created equal? Empirical evidence for nonequivalent market power effects of tariffs and quotas. Journal of International Economics 89(2) 369-378. Dunning J. H. (2014). Economic analysis and multinational enterprise. Routledge Publishers New York USA Gandolfo G. (2013). International Economics II: International Monetary Theory and Open-Economy Macroeconomics. Springer Science & Business Media. Komar N. Uniiat A. & Lutsiv R. (2016). Efficiency of the North American Free Trade Zone. Journal of the European economy (15 № 3) 279-293. Yoshimatsu H. (2016). US-Japan Negotiations on the Trans-Pacific Partnership. Asian Survey 56(6) 1145-1167. [...]
n 1980, automobile manufacturers in the United States asserted that import quotas be instituted on foreign-produced vehicles marketed in the United States. In a critical essay, elaborate on the costs and benefits of this policy and approach. Is the policy in effect? How have non-US manufacturers responded? Summarize the effects and discuss the trends of the past 35 years. Support your findings with additional academic references.