Restrictions on free trade Flashcards
1
Q
What is protectionism?
A
- Seeks to disrupt ‘free trade’ by creating barriers for trading, in order to protect the interests of domestic firms from the threat of foreign rivals
-some types are: tariffs, quotas, subsidies, embryos and non-tariffs barriers
2
Q
Types of restrictions on free trade
A
- Tariffs
- Quotas
- Subsidies
- Administrative barrier
- Exchange rate manipluation
3
Q
Tariffs
A
4
Q
Quotas
A
5
Q
Subsidies
A
6
Q
Administrative barrier
A
7
Q
Exchange rate maniplation
A
8
Q
Reasons for restrictions on trade
A
- The infant industry argument
- Job protection
- Dumping
- Cheap labour
- The terms of trade
