Protectionism

Question 1

government policies that restrict international trade to help domestic industries

Answer 1

protectionism

Question 2

why might a company consider relocating its operations?

Answer 2

• cheaper labour laws in an underdeveloped country
• the current operation is not meeting demand at the right rate
• to upgrade equipment and facilities
• to reach new markets

Question 3

why is protectionism sometimes bad for consumers?

Answer 3

Protectionism is sometimes bad for consumers because it increases prices, due to lack of competition, it additionally can be a negative thing because it limits consumer choices.

Question 4

pros of protectionsim

Answer 4

• protectionist policies give local industries the ability to grow
• protectionist policies tend to boost the economy’s GDP due to a rise in domestic production
• more job opportuinities

Question 5

cons of protectionism

Answer 5

• consumers have access to fewer goods in the market as a result of limitations on foreign goods
• increase in prices
• economic and cultural isolation