4.1.4 Protectionism Flashcards

You may prefer our related Brainscape-certified flashcards:
1
Q

What is protectionism?

A

Any attempt by a country to impose restrictions on trade in order to protect its own industries.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the 4 Types of protectionism?

A

1.Tariffs
2.Import quotas
3.Government legislation
4.Domestic subsides

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are tariffs?

A

Tax charges on imported goods that can raise prices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are import quotas?

A

A physical limit on the quantity of imports allowed into a country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is government legislation?

A

Import licensing ,patents and copy rights

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is Domestic subsidies?

A

Payment to a business to encourage domestic production by lowering there cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is Import dumping?

A

Selling significant amounts of products under there production costs or selling price in the domestic market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the 3 arguments FOR protectionism?

A

1.New industry protection
2.Protection of strategic industries
3.Protection against import dumping

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are 3 arguments AGAINST protectionism?

A

1.Higher prices for consumers
2.Retaliation from other countires eg trade war
3.Extra costs for exporters eve domestic firms trying to export

How well did you know this?
1
Not at all
2
3
4
5
Perfectly