25. Free trade or Protectionism Flashcards
1
Q
Benefits of international trade (6)
A
countries do not have to be self sufficient large variety of goods countries can specialise increases choice keeps peace sharing of knowledge and expertise
2
Q
disadvantages of uncontrolled trade
A
loss of jobs as firms outsource
rapid depletion of scarce resources
exploitation of workers
inequality
3
Q
tariff
A
indirect tax on the price of an imported good to discourage consumption
4
Q
subsidy
A
grants paid to domestic producers to reduce costs and increase supply
5
Q
quota
A
limit on the number of imports allowed in
6
Q
embargo
A
total ban on the importation of a good
7
Q
advantages of trade barriers
A
protect emerging industries
protect declining industries
correct trade imbalance
8
Q
disadvantages of trade barriers
A
hostile reaction from the target country
restrict choice
protect firms that are better off dead
restrict revenue and employment
