Topic 1- Protection

Question 1

Dumping

Answer 1

When foreign firms attempt to sell their goods in another country’s market at a price lower than the cost of production.

Question 2

Export incentives

Answer 2

Government provided benefits to exporters to assist their competitiveness in overseas markets.

Question 3

Local content rules

Answer 3

Require domestic producers to produce a certain proportion of a good or service domestically in order to receive benefits or maintain their license. For example, free to air TV stations must show a minimum proportion of domestically made TV to maintain their licenses.

Question 4

Protection

Answer 4

Refers to government policies that give domestic producers an artificial advantage over foreign competitors, such as tariffs on imported goods.

Question 5

Quota

Answer 5

A quantitative limit on the volume of imports.

Question 6

Subsidies

Answer 6

Payments to domestic producers to reduce production costs, thereby encouraging production of a good or service and influencing the allocation of resources in an economy.

Question 7

Tariffs

Answer 7

Taxes levied on imported goods for the purpose of protecting Australian industries.