4.1.4 Protectionism Flashcards
1
Q
Protectionism?
A
approach used by government to protect domestic producers
2
Q
Justified reasons why governments use protectionism? (3)
A
Protect jobs, Protect infant industries, Raise revenue
3
Q
Example of a trade barrier?
A
make imports more expensive
4
Q
What are taxes on imports called?
A
Tariffs or customs duties
5
Q
Import Quota?
A
Physical limit on quantity of imports allowed in country
6
Q
Whats an embargo?
A
extreme form of quota - imports are completely banned from a country
7
Q
2 problems with trade barriers?
A
another country may retaliate, or they might be ineffective if imports are inelastic
8
Q
Administrative barriers?
A
rules and regulations that make it difficult for importers to penetrate overseas market
