4.1.4 Protectionism Flashcards
What are administrative barriers?
Rules and regulations (such as trading standards and strict specifications) that make it difficult for importers to penetrate an overseas market.
What is dumping?
Where an overseas firm sells large quantities of a product below cost in the domestic market.
What is an embargo?
A complete ban on international trade – usually for political reasons.
What is an import quota?
A physical limit on the quantity of imports allowed into a country.
What is an infant industry?
New industries that have yet to establish themselves.
What is protectionism?
An approach used by a government to protect domestic producers.
What is a subsidy?
Financial support given to a domestic producer to help compete with overseas firms.
What is a tariff or excise duty?
A tax on imports to make them more expensive.
What is a trade barrier?
Measures designed to restrict trade.
