UK Protectionism - Medical Supplies During Covid
Due to the ongoing pandemic, the United Kingdom government has the VAT tax on medical supplies made outside of the EU. This is so that it is easier for these necessary and vital supplies to be produced and shipped to places that need them. The theoretical impact on domestic producers of medical supplies is since there will be a lot more foreign medical supplies being imported into the UK and bought by UK medical firms, domestic producers will have supply and demand issues. Since there will be many more options to choose from and an increase in foreign supply, the domestic suppliers will likely have less issues with supply, as they will not need to make as many products due to the increase in overall supply. As for domestic consumers, they will be able to purchase a lot more supplies, since they will have more they will be able to purchase, and secondly, because they will not have to pay tax on the foreign goods they buy. As for foreign producers, they will have a co...