Protcetionsism 4.1.4

Question 1

What is protectionism

Answer 1

protectionism involves protecting domestic business and home industries against foreign competition

Question 2

What will the government impose with protectionism

Answer 2

The government will impose protectionist policies through legislation, taxation Und spending.

Question 3

Benefits of free trade

Answer 3

Free trade means that nations can exploit the advantages other countries possess to produce certain goods and services more efficiently than others.

Not only does this mean that goods and services become more accessible, they also become cheaper.

Question 4

What does free trade provide ?

Answer 4

Free trade provides growth opportunities for home nations as international markets become accessible and profitable.

Question 5

What does free trade mean for businesses ?

Answer 5

For businesses, free trade may allow them to access components, raw materials and finished goods far cheaper than they could do otherwise.

Question 6

Tariffs

Answer 6

Tariffs - tax on imports that increases the price of imported goods, raises government income and makes domestic businesses more competitive.

Question 7

Subsides

Answer 7

Subsidies - government grants given to support exporting businesses so that they can lower their prices in order to compete internationally.

Question 8

State procurement

Answer 8

State procurement - favouring domestic businesses as suppliers over foreign competition.

Question 9

Soft loans

Answer 9

Soft loans - generous loan agreements offered to exporting businesses to help them compete in foreign markets