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.

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2
Q

Name 2 examples of protectionism measures

A
  • Tariff
  • Quotas
  • Export subsidies
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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
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