Barriers to trade and protectionism

Question 1

Overview

Answer 1

Is a government imposed restraint on the flow of international goods or services

The most common barrier to trade is a tariff- a tax on imports

Question 2

Barriers: Import licence

Answer 2

Document issued by a national government authorising the importation of certain goods from a specific source

Question 3

Import Quotas

Answer 3

Set a physical limit restricting quantity of a particular commodity that can be imported into country

Question 4

Subsidies

Answer 4

Grants or allowances awarded to domestic producers to reduce their costs and make them more competitive against imported goods

Question 5

Sanctions

Answer 5

Restrictions on exports implemented for political reasons by countries to maintain peace

Question 6

Embargoes

Answer 6

Involve the partial or complete prohibition of commerce and trade with a country
Political reasons usually