Hi Mike,
I am more interested in how tariffs can be used as an income generating device. It certainly raises revenue for the government, but if it's kept low, it doesn't restrict trade that much, but it does restrict somewhat.
About the Asian economic crisis, wrongful speculation of the region's purchasing power and productivity are factors that led to mistakes made in foreign direct investment. All of which contributed to the bursting of the economic bubble. I didn't elaborate too much last time, but the liberalization of Thailand's economy was a magnet for hungry foreign investors that had too much hope on its economic potential. That is why I argue for gradual liberalization. Remember, I still think that liberalization is good, but only in moderation or with careful consideration.
- Celine