Protectionism

Protectionism is

• the restriction of trade in order to protect domestic markets and economies

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

• measures designed to restrict trade

• a complete ban on international trade

why would the government feel the need to use trade barriers

• protect jobs

• raise revenue

• prevent the entry of harmful or undesirable goods

• improve the balance of payments

what is a 'physical limit on the amount of imports allowed into the country'

• embargo

• quota

• tariff

• trade barriers

what is an embargo

• a tax on imports to make them more expensive

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

• new industries that have yet to establish themselves

• a complete ban on international trade

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

• embargo

• subsidy

• administrative barriers

• dumping

using a subsidy means lower price for consumers

• True

• False

what are the problems with trade barriers

• makes trade more expensive

• limits the goods you can buy

• ineffective if the demand for imports is inelastic

• countries may retaliate

quotas prevent imported goods from overpowering the market

• True

• False

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

• protectionism

• customs duties

• subsidy

• dumping

an extreme form of a quota where imports are totally banned

• tariff

• embargo

• trade barriers

• dumping