Protectionism Flashcards
1
Q
Protectionism
A
The idea is to shield domestic industries from international competition using economic measures.
2
Q
Tariffs
A
Taxes on goods which are imported
3
Q
Quotas
A
Limit on imported goods such as French wine and German cars.
4
Q
Export Subsidies
A
Assistance for businesses exporting abroad
5
Q
Embargos
A
Ban placed on goods from abroad
6
Q
Regulations
A
Red tape - rules making imports more difficult
7
Q
Opportunities in Protectionism Increasing
A
Increased sales to domestic users
Increased prices (less competition) and increased profit margins to re-invest
8
Q
Threats in Protectionism Increasing
A
Risk of retaliation, thus damaging export sales
Cost of imported goods rises (making cars in the USA more expensive, as increase in cost of production)
