Final answer:
Governments can help people who lose from trade through measures such as tariffs, quotas, embargoes, subsidies, and local content laws. These trade barriers are aimed at protecting domestic industries and workers, but they can also have negative consequences.
Step-by-step explanation:
Governments can help people who lose from trade through various measures:
- Tariffs: Governments can impose tariffs on imported goods, which increases the price of the foreign goods and gives domestic producers a competitive advantage.
- Quotas: Governments can set limits on the quantity of imported goods, ensuring that domestic producers have a greater market share.
- Embargoes: Governments can prohibit trade with certain countries or block the import of specific goods, which protects domestic industries.
- Subsidies: Governments can provide financial support to industries that are negatively affected by trade, helping them to remain competitive.
- Local Content Laws: Governments can require that a certain percentage of a product be made domestically, boosting the domestic industry.
These trade barriers aim to protect domestic industries and workers by reducing competition from foreign goods, but they can also have negative consequences such as higher prices for consumers.