Protectionism Flashcards
(9 cards)
1
Q
What is protectionsim?
A
The restriction of imports into a country by governmental measures.
2
Q
What are 3 reasons for protectionism in the UK?
A
- Helps to protect UK businesses from competition.
- Helps to protect UK jobs and industries e.g steel
- Prevents dumping of cheap imports to the UK.
- Prevents imports of harmful or undesirable goods.
3
Q
What types of protectionism exists?
A
Tariffs.
Quotas.
Embargoes.
Subsidies.
Legislation.
Regulations.
4
Q
What are tariffs?
A
Taxes on imported goods.
5
Q
What are quotas?
A
Limits to the quantity of a product that can be imported to a country.
6
Q
What are embargoes?
A
An official ban of trade with another country or commodity.
7
Q
What is a downside to protectionism reducing competition for UK firms?
A
This can deincentivise innovation and workers may become lazy and inefficient.
8
Q
What are negative impacts of imposing protectionism?
A
Other countries are likely to retaliate which can cause a trade war.
9
Q
A
