Protectionism

Question 1

Protectionism

Answer 1

Giving preference to domestic producers by making it harder or more expensive for overseas companies to export to your country

Question 2

Import quotas

Answer 2

Trade restrictions that limit the quantity of a good a country can import
+Protects domestic jobs
+Balances trade
-Higher prices for consumers
-Inefficiency in domestic industries

Question 3

Tariffs

Answer 3

A tax placed by the government on imports

+Protects infant industries
+increases gov tax
-Increase cost of imported raw materials
-Less comp for domestic firms-become inefficient

Question 4

Legislation

Answer 4

Laws made by parliament to prohibit foreign goods and services from entering the country
+More growth opportunities
+Lower imports
-Decreased variety
-Increased cost for the consumer

Question 5

Domestic subsidies

Answer 5

Financial assistance is provided by the government to local businesses to help them compete against foreign imports
+Support local businesses
+job creation
-Cost to taxpayers
-Mark distortion