protectionism

Question 1

increasing tariffs on imports

Answer 1

prevents dumping
corrects bop
protects employment
tariff revenue can be used in Econ
leads to retaliation
depends on ped

Question 2

what happens when you increase protectionism

Answer 2

disorts comp adv and specialisation
loss of output and living standards
increased prices for consumers and less choice
government gain tax revenues
retaliation
effect differs on developed and developing country
decreases opportunities for labour altho less exploitation

Question 3

subsidies eg agricultural

Answer 3

lower pricers more produced so more competitve
trade diversion
cost 2 gov
balances trade deficit as less imported