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Restraining auto imports: Does anyone win?
Author(s) -
GomezIbanez Jose A.,
Leone Robert A.,
O'Connell Stephen A.
Publication year - 1983
Publication title -
journal of policy analysis and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.898
H-Index - 84
eISSN - 1520-6688
pISSN - 0276-8739
DOI - 10.2307/3323283
Subject(s) - business , international trade , economics , advertising , law and economics
The conventional wisdom suggests that import restraints help the protected domestic industry at the expense of consumers. In the longer term, however, trade restraint may encourage foreign firms to adopt new and more threatening business strategies, such as upgrading the quality of their products or moving plants to the United States. If these long‐term dynamic effects of restraint are considered, trade restraints may prove harmful to the domestic industry as well as consumers.