TERM 2 - Protectionism and free trade - Export Promotion

Question 1

BRICS

Answer 1

An association consisting of
B - Brazil
R - Russia
I - India
C - China
S - South Africa

They discuss policies and politics in international, economic and financial matters

Question 2

Disinvestment

Answer 2

Withdrawal of capital investment from a company

Question 3

Embargo

Answer 3

Ban on trade with a particular country

Question 4

Free trade

Answer 4

Producers & consumers are free to buy goods/services from anywhere in the world without interference from the government

Question 5

Import Substitution

Answer 5

This is part of South Africa’s international trade policy. It means goods that were previously imported are replaced by LOCALLY PRODUCED goods.

Question 6

MERCOSUR - SACU trade agreement

Answer 6

An organization to promote FREE TRADE amongst Argentina, Brazil, Paraguay and Uruguay

Question 7

New Partnership for African Development (NEPAD)

Answer 7

This partnership assists with cooperation among African states

Question 8

Protection

Answer 8

Trade policy where the state discourages IMPORTING of certain goods/services to protect the local industries against UNEQUAL competition

Question 9

Sanction

Answer 9

Penalty applied by one or more countries to another country

Example:
In the apartheid years many countries implemented SANCTIONS against South Africa

Question 10

Southern African Development Community (SADC)

Answer 10

An economic union comprising of many African countries (example: South Africa, Lesotho, Mozambique, Zambia, etc) allowing IMPORTS to qualify for DUTY-FREE access

Question 11

Trade liberalisation

Answer 11

Abolition of government intervention in trade flows on IMPORTS and EXPORTS

Question 12

World Trade Organisation (WTO)

Answer 12

Organization monitoring INTERNATIONAL trade