Protectionism and Global Trade

What is a Trade War?

• An economic conflict that occurs when one or more countries impose tariffs or other trade barriers on each other in retaliation for perceived unfair trade practices.

• A peaceful negotiation between countries to enhance trade relations.

• A situation where countries collaborate to eliminate tariffs and trade barriers.

• A type of war fought over natural resources and trade routes.

What does Export mean?

• Goods or services sent out of one country to another for sale.

• Goods or services brought into one country from another.

• A type of tax imposed on goods leaving a country.

• A process of manufacturing goods for local consumption.

What are Value Chains?

• The full range of activities that firms and their employees perform to bring a product from its conception to its end use and beyond.

• A method for calculating the total cost of production for a product.

• A strategy for reducing the time taken to deliver products to customers.

• A framework for analyzing the competitive forces in an industry.

What are Embargoes?

• A type of tax imposed on imports

• Partial or complete restrictions of particular imports/exports or ban on trade with a particular country for political reasons.

• A trade agreement between two countries

• A method of currency exchange

What does Import mean?

• Goods or services brought into one country from another for sale.

• Goods or services sent out of one country to another for sale.

• A tax imposed on imported goods.

• A type of financial investment in foreign markets.

What is a Tariff?

• A tax or duty paid on a particular class of imports or exports.

• A subsidy provided to local businesses.

• A fee charged for exporting goods.

• A regulation that limits the quantity of imports.

What is a Quota?

• Official limits on the number or amount of imports.

• A type of tax imposed on imported goods.

• A measure of the quality of products sold.

• A regulation on the price of domestic goods.

What are Retaliation Tariffs?

• Tariffs imposed by a country in response to the imposition of tariffs by another country.

• Tariffs that are applied to goods imported from countries with lower tariffs.

• Tariffs that are used to protect domestic industries from foreign competition.

• Tariffs that are levied on exports to increase government revenue.

What are Reciprocal Tariffs?

• Import taxes imposed by a country that are equivalent to the tariffs imposed by other countries on the import of its products; a 'tit for tat' approach to trade policy.

• A type of tax levied on exports to encourage domestic production.

• Tariffs that are only applied to goods imported from developing countries.

• A system of trade agreements that eliminates all tariffs between member countries.

What are Subsidies?

• Financial aid provided by the government to reduce costs for consumers.

• Money paid by a government to domestic industries to reduce production costs and prices, usually resulting in a decrease in costs to the consumer.

• A tax imposed on imported goods to protect domestic industries.

• A loan given to businesses to help them expand their operations.