Key terms Flashcards
What is a tariff
A tax imposed on goods
What is a subsidy?
Financial assistance to a business by government to make it competitive or prevent collapse
What is a quota?
A limit on the quantity of goods allowed into the country
Define protectionism?
Policies to protect businesses and workers in a country by restricting/regulating trade with foreign nations
What is a free - market economy?
A market economy based upon supply and demand with little or no government control
What is free trade?
A policy where a government does not interfere with imports or exports by applying tariffs, subsides or quotas
What is privatisation?
transferring ownership of a public service/ agency/ property into private ownership run for profit
Define neoliberalism?
A political philosophy of free markets, free trade, privatisation and increasing the role of business in society (whilst decreasing the influence of government).
What is the thought process behind neoliberalism?
It is thought by making trade easier, there will be more of it, meaning wealth and the reduction of poverty.
