Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 6

The small, landlocked nation of Wheatleyton is just starting to develop an agricultural sector. Firms in this sector appeal to the government to temporarily limit imports of agricultural goods from other nations with more experience and larger scale, resulting in import prices so low domestic firms can't compete. What is this desired policy called? What problems are associated with it, and how can we reduce them?