4.1.4 Protectionism

Question 1

Protectionism

Answer 1

Protecting domestic businesses + home industries against foreign competition + limiting the number of imports into country.
Gov will do this through legislation/taxation

Question 2

Free trade

Answer 2

Provides growth opp for home nations as international markets become accessible + profitable
Allows business excess components/raw materials/finished goods far cheaper than they could do

Question 3

Protectionism in practise key features

Answer 3

Tariffs
Subsides
State procurement
Soft loans
Technical barriers
Quotas

Question 4

Tariffs

Answer 4

Tax on imports that increase price of imported goods, raises gov income + makes domestic business more competitive

Question 5

Subsidies

Answer 5

Government grants given to support exporting businesses so that they can lower their prices in order to compete internationally

Question 6

State procurement

Answer 6

Favouring domestic businesses as suppliers over foreign competition

Question 7

Soft loans

Answer 7

Generous loan agreements offered to exporting businesses to help the compete in foreign markets

Question 8

Technical barriers

Answer 8

E.g rules + regulations governing the standard of products entering the country

Question 9

Quotas

Answer 9

Physical limits set on the number of units that can be imported into a country

Question 10

Risks

Answer 10

Protectionism may force businesses to use more expensive domestic suppliers = less competition. It may also encourage businesses to move abroad to avoid trading barriers