4.1.4 Protectionism

Question 1

define administrative barriers

Answer 1

rules and regulations that make it difficult for importers to penetrate an overseas market

Question 2

define dumping

Answer 2

where an overseas firm sells large quantities of a product below cost in the domestic market

Question 3

define embargo

Answer 3

a complete ban on international trade, usually for political reasons

Question 4

define import quota

Answer 4

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

Question 5

define infant industries

Answer 5

new industries that have yet to establish themselves

Question 6

define protectionism

Answer 6

an approach used by a government to protect domestic producers

Question 7

define subsidy

Answer 7

financial support given to a domestic producer to help compete with overseas firms

Question 8

define tariffs

Answer 8

a tax on imports to make them more expensive

Question 9

define trade barriers

Answer 9

measures designed to restrict trade