Question

What are some ways that governments can help people who lose from trade?

Answer 1

They repay the travel cost.
They can build its program of re-employment services.
They can provide job training that advances the skills/techniques.

Answer 2

Although trade is generally considered beneficial to a country, the benefits are not always universal. While some groups benefit from trade, many others can be deeply affected by it. When a particular group is damaged by trade, it is common for the government to intercede in order to protect it. Some of the ways in which they do so are:

• Through tariffs. This makes foreign goods more expensive, in turn making local goods more competitive.
• Through subsidies. This allows local producers to develop and compete with foreign producers without losing money.
• Through quotas. By establishing a quota, the government only allows a certain number of foreign goods to enter the country. This benefits the local producers by ensuring enough demand for their products.