Protectionism leads to a closed market while trade liberalization leads to a free trade open market. Governments use tariffs to try and regulate the level of services between countries. Ford has undertaken several efforts to avoid paying tariffs on their imported wagons. To start with, not all goods that come into the United States of America are subjected to tariffs. Seventy percent of imports are free of the duty while only the other thirty percent are dutiable (Carbaugh). The wagon components are made in the country and shipped outside the country to another nation that has lower labor costs. ...
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