American fruit producers in California are in deep trouble. Between wild fires, droughts, and California’s horrible economic situation, they are having a rough time as it is. Now, though, cheap fruits coming in from Mexico and other Central American countries have made matters even worse. Congressman Tim Barrows has proposed new health and quality requirements for all fruits sold in the United States, knowing full well that most foreign fruit companies do not meet the same requirements, especially due to their use of pesticides that America would outlaw with this proposal.
Type of trade barrier: _____________
The trade barrier meant to protect _.
Argument for why you would or would not recommend this proposal:_____________.

Question

03-05-2019
Social Studies

contestada

American fruit producers in California are in deep trouble. Between wild fires, droughts, and California’s horrible economic situation, they are having a rough time as it is. Now, though, cheap fruits coming in from Mexico and other Central American countries have made matters even worse. Congressman Tim Barrows has proposed new health and quality requirements for all fruits sold in the United States, knowing full well that most foreign fruit companies do not meet the same requirements, especially due to their use of pesticides that America would outlaw with this proposal.
Type of trade barrier: _____________
The trade barrier meant to protect _.
Argument for why you would or would not recommend this proposal:_____________.

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GeoPanther GeoPanther · Answer 1 · 2019-05-17T10:25:16+02:00

The type of trade barrier in this case would be an embargo. Even though the embargoes are usually used for different purposes, considering the circumstances in this case, we will have an embargo on the foreign fruits.

The trade barrier has a purpose to protect the domestic producers. By stopping the import of foreign fruits that are also produced in the country, the domestic producers will have the market for them and avoid the foreign competition.

This is a like a knife with two points. From one side it is a good move because the domestic producers are protected and will be able to make more profit. On the other side, the prices of the fruits will go up because the domestic producers will lack the competition that was making them lower the prices, which will be a hit on the pocket of the ordinary citizen.