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The prices. The well-being of nation as a result grows: proprietors of resources
Make, and consumers receive for the money of more goods and services.
If workplaces were a key to riches, we could with ease
To create their any quantity. All would be provided by job, digging out holes
Today and digging in them tomorrow, but thus all would be very poor, for
Such workplaces do not create the goods and services on which it is shown
Import restrictions can increase employment in protected branches.
However it does not mean that they expand cumulative employment. Import
Creates a purchase power for export. Therefore when, for example, Canadians
Enter tariffs, quotas and other barriers limiting ability
Foreigners to sell the goods in Canada, they thereby limit
Ability of foreigners to buy the Canadian goods. After all if at foreigners
Will be less possibilities to sell the goods to Canadians, on hands at
Them it will appear less Canadian dollars necessary for acquisition
The Canadian goods.
Hence, restrictions on import reduce export. Manufacture and
Employment in export branches decrease, and them cannot compensate
The "rescued" workplaces in protected branches. The matter is that
Restrictions on import distract resources from branches, where the domestic
Firms-manufacturers have low costs, and direct them there, where
Costs are high. As a result more than internal resources it will appear
Involved in manufacture of the goods, which Canadians do badly, and
It is less - in manufacturing of that they do better others.
Many are assured that for protection of local workers against import of the goods,
Made by means of cheap work, trading restrictions it is exact
Are necessary. This sight also is erroneous.
The countries which are taking out somewhere the goods, do it to receive
Currency on which it is possible in the same place and to buy. They aspire to import
The goods which are rather cheap abroad and to export those,
Which are rather cheap at home. Therefore such countries, as Canada and
The United States import the labour-consuming goods: wigs, carpets, toys,
Products of manual crafts, etc. They export quality glass
Grain, petrochemistry products, the newest computers, planes and scientific
Devices... - that is all that is made by means of
High-efficiency work, fertile farmland and
Knowledge - rich resources of the United States of America and Canada.
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