4.1.4 - protectionism Flashcards
what is protectionism?
protectionism is an economic policy aimed at restricting imports to protect domestic industries.
true or false:
tariffs are a form of protectionism.
true
fill in the blank:
a _____ is a tax imposed on imported goods to make them more expensive than domestic products.
tariff
what are quotas in the context of protectionism?
quotas are limits on the amount of a specific good that can be imported into a country.
nameone advantage of protectionism.
it protects domestic jobs from foreign competition.
what is an import ban?
an import ban is a government policy that prohibits the importation of certain goods.
true or false:
protectionism can lead to higher prices for consumers.
true
what is the purpose of subsidies in protectionism?
subsidies are financial support given to local businesses to help them compete against foreign imports.
multiple choice:
Which of the following is NOT a protectionist measure?
A) Tariff
B) Quota
C) Free Trade Agreement
C) Free Trade Agreement
what is a trade barrier?
any regulation or policy that restricts international trade.
Fill in the blank:
_____ are often used to protect emerging industries in a country.
tariffs
what is the concept of ‘dumping’ in international trade?
when a country exports a product at a price lower than the price it charges in its own country.
true or false:
protectionism can lead to retaliation from other countries.
true
what is a non-tariff barrier?
any trade restriction that does not involve a tariff, such as quotas or import licensing.
name one potential disadvantage of protectionism.
it can lead to trade wars and reduced economic growth.
what is state procurement?
favouring domestic businesses as suppliers over foreign competition.
what are the benefits of free trade?
- growth opportunities for home nations as international markets become accessible and profitable.
- may have access to cheaper components, raw materials and finished goods.
- nations can exploit the advantages other countries possess to produce certain goods/services more efficiently than others.
