Trade Intervention

Question 1

Protectionism

Answer 1

Try to limit selling abroad and importing.

Keeping country self sufficient

Question 2

Reasons to intervene (Economic)

Answer 2

Fight unemployment
Protect infant industry
Develop industrial base (be a powerhouse)
Economic relationships with countries

Question 3

Reasons to trade (not economic)

Answer 3

Maintain essential industries
Promote acceptable practice
Maintain spheres of influence
Preserve culture

Question 4

Tariffs and three types

Answer 4

Tax on a good

Specific: per unit
Ad valorem: %
Compound

Question 5

Subsidies

Answer 5

Assistance to companies. One of most common ways to change prices

Question 6

Quotas

Answer 6

Limit quantity of products that can be imported