Protectionist Trade suppose China is worried about the size

Protectionist Trade: suppose China is worried about the size of its trade deficit, and has decided to reduce it by placing a tariff on imports. What considerations would you want to make when deciding which goods to place the tariff on? Think in terms of who benefits, and who is harmed by the policy. Which goods would you recommend? Explain.

Solution

Ans

We will simply recommend those goods in case of which there is least deadweight loss of production and consumption In other words where there is least fall in consumer surplus.