4.1.6 - Restrictions on free trade Flashcards
1
Q
What is protectionism?
A
Protectionism involves any attempt by a country to to impose restrictions on the open trade in goods and services.
2
Q
Name 2 examples of protectionism measures
A
- Tariff
- Quotas
- Export subsidies
3
Q
Name 2 pros of protectionism
A
- Increase value of goods and services
- Increase demand if there’s absolute and comparative advantage
- Reduce reliance on other economies
- Promote and protect domestic industry