Protectionism Flashcards
1
Q
Protectionism defined
A
Protectionism is the theory or practice of shielding (or protecting) a country’s domestic industries from foreign competition by taxing imports, imposing quotas or passing laws
2
Q
What is a tariff?
A
A tariff is a tax placed on an import to increase its price and decrease its demand
3
Q
What are Domestic subsidies?
A
Money is given to local producers to make their goods cheaper on the domestic market
