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WorksheetsProtectionism Theme 4
Total questions: 12
Worksheet time: 8mins
What is a Tariff?
An amount charged to businesses that want to export goods
A tax placed on an import
A fine for importing too many products
A charge for doing business in a foreign country
Which of these is true? (more than one may be true)
Tariffs are imposed by Governments to reduce imports
A business can choose whether or not to pay the Tariff
Tariffs are set by the WTO
A Tariff will raise the price of imported products meaning consumers prefer domestic goods/services
Which of these are impacts of Tariffs? (more than one may be true)
Tariffs can increase the number of jobs in several countries
A foreign producer will cut production due to reduced demand on products that have a Tariff applied
A Tariff will increase competition
A Tariff will protect inefficient domestic industries
Why do Governments use Tariffs? (more than one may be true)
To raise tax revenue
To protect domestic industries from foreign competition
To protect the environment from potentially more harmful products
To encourage new imports into the country
Which of these is a benefit of having Tariffs?
More imports in the country offer consumers a greater variety of choice
Foreign firms are less likely to invest in the country to avoid paying the Tariff
Domestic produced products are cheaper as the Tariff is not applied to them
Which of these is a drawback of Tariffs?
Other countries may impose Tariffs of their own in response
Greater pressure on domestic industries
Businesses absorb the cost of the Tariff and so are less profitable
Which of these defines 'Quota'?
A charge made by a country to prevent too many imports
The difference between the amount a country imports and exports
Being able to count the number of imports and exports in a country
A physical limit of the quantity of a good imported or exported
Why are Quotas used? (more than one may be true)
To protect jobs of domestic workers
Because they control the number of imports more effectively than Tariffs do
As a bargaining chip in trade negotiations with other nations
To support the introduction of foreign goods into new markets
Which of these is a benefit of having Quotas?
To protect the demand for domestic products
To increase Balance of Payments
To maintain relationships with other national governments
Business prefer Quotas to Tariffs as there is no extra charge
How many of these are drawbacks of Quotas?
Quotas often stay in place long after the infant industry they were designed to protect has established itself
Use of quotas creates a domino effect of other countries imposing similar restrictions
Quotas reduce the amount of FDI in a country
Quotas reduce the amount of goods sold and therefore increase waste
Which of these are other forms of Protectionism? (more than one may be true)
Government subsidies
Trade agreements between nations
Product quality requirements
Tax breaks
Insistence on use of trade marks/copyright/intellectual property
What is meant by 'Subsidy'
A payment made to importers to encourage them to provide goods and services to the country
A restriction on the provision of labour within a country
Financial support given by the government to domestic firms to help make their goods cheaper within the domestic market
A method of preventing new firms from joining the domestic market
