A2 Protectionism

What is the opposite of open trade?

• Liberalism

• Protectionism

• Capitalism

• Globalization

What is the main aim of protectionism?

• To reduce domestic production

• To promote free trade

• To protect domestic businesses

• To increase international trade

What is a common type of protectionism mentioned in the text?

• Free trade agreements

• Subsidies

• Tariffs

• Global partnerships

What does a tariff do to imported products?

• Reduces their quantity

• Improves their standards

• Increases their price

• Decreases their quality

What is a quota?

• A subsidy for exports

• A standard for product quality

• A limit on the quantity of imports

• A tax on domestic products

What are non-tariff barriers?

• Subsidies for domestic industries

• Regulatory hurdles for imports

• Taxes on exports

• Limits on the number of domestic products

How can a government support its domestic businesses against overseas competition?

• By increasing taxes

• By imposing more regulations

• By providing subsidies

• By promoting free trade

What is the effect of subsidies on domestic products?

• Makes them more price competitive internationally

• Reduces their production

• Lowers their quality

• Makes them more expensive

What is not allowed in terms of state aid in the European Union?

• Providing subsidies

• Ascension

• Imposing tariffs

• Setting quotas

What is a quota in international trade?

• a tax on imports

• a limit on the quantity of imports

• an administrative and technical barrier

• a government grant to encourage production