4.1.4 protectionism Flashcards
What is protectionism
Where the government wants to protect domestic production from overseas competition
What are tarrifs
A tax added to an import
What are import quotas
A restriction on the physical number of items allowed into a country
What is one problem with trade barriers
‘Tit for tat’ - if one country imposes a tariff, another might also do the same
What is government legislation
Rules imposed by a government regarding imports
What is a subsidy
Where the government provides financial support to business’ to help combat over seas producers
What are administratve barriers
Rules and regulations imposed by a government
What is dumping
Where an over seas firm sells large quantities of product below the cost in a domestic marker
What is embargo
A complete ban on international trade
Import quota
A physical limit on the amount of products allowed into a country
What are infant industries
Industries which are yet to establish themselves
What are trade barriers
Measures designed to restrict trade
