Protectionsim

Question 1

Protectionism

Answer 1

An approach used by gov to protect domestic products

Question 2

Aim of protectionism

Answer 2

> Protect jobs
protect small industries
prevent dumping
raise revenues

Question 3

Tariffs

Answer 3

Taxes on imports so demand for domestic products will go up

Question 4

Import quotas

Answer 4

A physical limit on the quantity of imports allowed into the country

Question 5

Embargo

Answer 5

A complete ban on international trade

Question 6

Problems with trade barriers

Answer 6

> some country’s may retaliate

> tariffs may be ineffective if demand for goods are inelastic

Question 7

Government legislation

Answer 7

Reduce imports by insisting imported goods meet strict regulations and specifications

Question 8

Administrative barriers

Answer 8

Rules and regulations that make it difficult for imported goods to penetrate an overseas market

Question 9

Subsidies

Answer 9

Financial support given to domestic producers to help compete with oversea firms