States. Notice that some of the burden of protectionism, paid by domestic consumers, ends up in the hands of

foreign producers in this case. Brazilian sugar consumers seem to benefit from U.S. protectionism, because it

reduces the price of sugar that they pay (compared to the free-trade situation). On the other hand, at least

some of these Brazilian sugar consumers also work as sugar farmers, so protectionism reduces their incomes

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20.2 • International Trade and Its Effects on Jobs, Wages, and Working Conditions 479

and jobs. Moreover, if trade between the countries vanishes, Brazilian consumers would miss out on better

prices for imported goods—which do not appear in our single-market example of sugar protectionism.

The effects of protectionism on foreign countries notwithstanding, protectionism requires domestic

consumers of a product (consumers may include either households or other firms) to pay higher prices to
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