Protectionism Flashcards
What is a primary goal of protectionism?
Support local industries
What is a tariff?
A tax imposed on imported goods to increase their price and encourage the consumption of domestic goods.
What is an example of a tariff?
In 2018, Donald Trump imposed a 25% tariff on all steel imports to protect US manufacturing.
What is an embargo?
A total ban on importing goods from a particular country, often for political, economic, or environmental reasons.
What is an example of an embargo?
Ireland faced a 15-year embargo on exporting beef to the USA, which was lifted in 2015.
What is a quota?
A limit on the number of units of a specific good that can be imported.
What is an example of a quota?
In 2018, the UK implemented quotas to limit the import of steel from non-EU countries.
What is a subsidy?
A financial grant or payment from governments to domestic firms to help with operational costs and make domestic goods more competitive.
What is an example of a subsidy?
During Covid-19, Lufthansa received billions in state aid to cover its costs, which Ryanair contested.
