4.1.4 protectionism

Question 1

define tariffs

Answer 1

a tax placed on an import to increase its price and decrease its demand

Question 2

advantages of tariffs

Answer 2

domestic produced goods dont incur the tariff so are likely to be cheaper.
tariff protection allos domestic businesses to sell more because they gain a price advantage compared to imports.
ensure better job security.
aid economic growth by improving gdp

Question 3

disadvantages of tariffs

Answer 3

high import price wont put many off.
unfair competition.
tariff may just increase prices for consumers.
restricts the volume of trade

Question 4

define quota

Answer 4

a physical limit on the quantity of a good imported or exported

Question 5

advantages of import quotas

Answer 5

boosts local investment
protects domestic businesses
creates more job opportunities
goods become less expensive

Question 6

disadvantages of import quotas

Answer 6

quotas are also complex for the country using them.
difficult to measure the precise degree of protection quotas offer

Question 7

define subsidies

Answer 7

a way of a government protecting their domestic markets