protectionism and trading blocs

Question 1

what is protectionism

Answer 1

where the governemnt protects domestic businesses and jobs from foreign competition

Question 2

what are tarrifs

Answer 2

tax that has to be parid when certain products are imported into a country

Question 3

quotas

Answer 3

putting limits on the volume of particualr products that can be imported into a country in a certain time period

Question 4

adv of tarrifs and quotas

Answer 4

help domestic firms grow as they are faced with less foreign competition

Question 5

dis of tarrifs and quotas

Answer 5

reduce consumer choice, may have to pay more than they would do otherwise

lack of comp may remove the incentive for domestic firms to improve efficiency and quality

Question 6

government legislation

Answer 6

restict international trade

e.g trade snactions strongly restircing counteries from trading together

trade embargos which could ban trading with a ceertain country altogether

Question 7

domestic subsides

Answer 7

sums of money provided by government to domestic firms in a certain industry

reduce production costs alllowing busienss to have lower prices than imports

Question 8

dis of domestic subsidies

Answer 8

cost givernment money meaning people living in the country will face higher taxes to fund the subsidies