4.1.4 Protectionism

Question 1

What is protectionism?

Answer 1

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

Question 2

What are the 4 Types of protectionism?

Answer 2

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

Question 3

What are tariffs?

Answer 3

Tax charges on imported goods that can raise prices

Question 4

What are import quotas?

Answer 4

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

Question 5

What is government legislation?

Answer 5

Import licensing ,patents and copy rights

Question 6

What is Domestic subsidies?

Answer 6

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

Question 7

What is Import dumping?

Answer 7

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

Question 8

What are the 3 arguments FOR protectionism?

Answer 8

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

Question 9

What are 3 arguments AGAINST protectionism?

Answer 9

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