test #2 2024

Question 1

Protectionism

Answer 1

a policy of protecting home industries from foreign competition by the imposition of trade barriers on imported good and services.

Question 2

Tariff

Answer 2

a duty or tax on imported goods.
- Tariffs increase the price of imported goods and make it less price-competitive.

Question 3

Non-tariff barriers (7)

Answer 3

reduce or completely ban some imports into a country.

Quotas
embargos
exchange controls
voluntary export restrictions
quality standards
bureaucratic red tape
export subsidies

Question 4

Preferential tariffs

Answer 4

is a reduced tariff granted by one country on certain goods from another country.

Question 5

Benefits of preferential tariffs (3)

Answer 5

• the exporting country benefits from the lower tariff
• preferential tariffs foster stronger trading ties between countries.
• preferential tariffs give developed counties an opportunity to assist poorer countries.

Question 6

Cost of preferential tariffs (3)

Answer 6

• the more efficient suppliers might have higher duties placed on their goods
• consumers in the importing country do not benefit from the availability of goods
• preferential tariffs cause other countries not in receipt of the lower tariff rate to become DISCONTENTED.

Question 7

Trade liberalization

Answer 7

is the reduction, or even total removal of, barriers to trade.

Question 8

Globalization

Answer 8

the emergence of a single world market facilitated by improved technology and communications, and deregulation.