protectionism Flashcards
1
Q
protectionism is
A
any attempt by a country/trading bloc/region to impose restrictions on the import of goods and services
2
Q
3 reasons why protectionism may occur
A
- to protect jobs
- to protect politically sensitive industries
- concerns about imbalances (imports vs exports)
3
Q
what is a tariff
A
a tax or duty that raises the price of imported goods
reduces demand
4
Q
positive of tariffs
A
promote local industries and products
5
Q
3 negatives of tariffs
A
- discourages trade
- reduces consumer choice
- restricts competition
6
Q
import quotas are
A
quantitative limits on the level of imports allowed into a country in a certain time period
7
Q
3 postives of quotas
A
- keeps volumes of imports unchanged even when demand changes
- outcome of the quota is certain
- local jobs are protected
8
Q
3 negatives of quotas
A
- restricts competition
- no tax revenue from imports
- distorts international trade
9
Q
2 other trade barriers
A
government legislation
domestic subsidies
