Protectionism

Question 1

Protectionism

Answer 1

-government introduce policy to protect domestic firms in their nations
-due to overseas wanting to import

Question 2

Why

Answer 2

-protect jobs in their nation
-protect emerging industry, require supports from overseas competition
-domestic firms grow at expense of oversea rivals
-raise revenue for government/tariffs
-prevents dumping, oversea have access capacity and sell them at low prices which is hard to compete with

Question 3

Forms

Answer 3

-tariffs
-quotas: physical limit on how much allowed
-administrative barriers: red tape
-subsides/loans: positive approach to help domestic firms

Question 4

Loop holes for oversea companies

Answer 4

-they may set up production in overseas country
-then exempt from tariffs and polices

Question 5

Impact on domestic firms

Answer 5

-aid competitiveness/profitable
-domestic firms rely on raw materials from abroad, could have raised costs, own government placed additional tax on imported goods