Theme 4

Question 1

Free trade

Answer 1

Is international trade without restrictions such as tariffs

Question 2

Protectionism

Answer 2

Is the policy of restricting imports through trade restrictions

Question 3

Context about protectionism

Answer 3

• No countries solely pursue free trade or protectionism
• Adopt a policy mixture that combines elements of both
• However some are much more open to trade than others
• Developed countries tend to be nearer to free trade whereas developing usually more protectionist (exceptions include USA that become more protectionist under Trump)

Question 4

Why do countries use trade restrictions?

Answer 4

1. National security
2. Public safety
3. Tax revenue
4. Protect Domestic Industries
5. Retaliation
6. Prevent dumping