6.2 Protectionism Flashcards
Define the term “Protectionism”
Protecting domestic producers from foreign competition.
Define the term “Tariff”
A tax imposed on imports. Sometimes tariffs may be imposed on exports.
Define the term “Absolute poverty”
A condition where peoples income is too low to enable them to meet their basic needs.
Define the term “Quota”
A limit on imports.
Define the term “Embargo”
A ban on imports and/or exports
Define the term “Voluntary export restraint”
A limit placed on imports reached with the agreement of the supplying country.
Define the term “Exchange control”
Restrictions on the purchases of foreign currency.
Define the term “Infant industries”
New industries that have a low output and a high average cost.
Define the term “Dumping”
Selling products in a foreign market at below their cost production.
Define the term “Monopoly”
Where one firm dominates the market due to having a large market share; a pure monopoly is a single seller with 100% market share.
Define the term “Current account”
A record of the trade in goods, trade in services, primary income and secondary income.
