Suppose the Russian government decides it needs to protect its aircraft industry for reasons of national security. Name two ways it can achieve this goal. Which policy would you recommend? Why?
- OiyLv 68 months ago
In economics, there are two measures, raise tariffs and introduce a quota system for imports without premium for exports. The import supply will shift to the left while the domestic production will shift to the right. The money goes to the government pocket.
The quota will create economic rent. The rest would be like the tariff measure.