Types of Protection

Question 1

Tariff - how do they protect domestic producers 
draw diagram (get paper)

Answer 1

a tariff is a government-imposed tax on imported goods. It has the effect of raising the price of imported goods, making the domestic producer more competitive

Question 2

Quota - how do they protect domestic producers 
draw digram (get paper)

Answer 2

quotas refer to restrictions on the amounts or values of various kinds of goods that may be imported. The quota guarantees domestic producers a share of the market

Question 3

Subsidy - how do they protect domestic producers draw digram (get paper)

Answer 3

subsidies are cash payments from the government to businesses to encourage the production of a good or service and influence the allocation of resources in the economy. They are used to help businesses compete with overseas produced goods

Question 4

Local Content Rules

Answer 4

local content rules specify that goods must contain a minimum percentage of locally made parts. Such a guarantee allows any components that are imported to be untaxed

Question 5

Export Incentives

Answer 5

export incentives programs give domestic producers assistance such as grants, loans or technical advice, and encourage businesses to penetrate global markets or expand their market share