4.1.4

• protectionism

  when a government seeks to protect domestic industries from foreign competition
• tariffs

  tax imposed on imported goods + services by gov = make expensive + less competitive with domestic products

  +:

  • protection of domestic industries
  • increased government revenue

  -:

  • increase business costs
  • reduced consumer choice + higher prices
• quotas

  a trade restriction that limits quantity of a specific goods that can be imposed in the country during a specific period

  +:

  • reduced competition
  • higher prices

  -:

  • higher input costs as high raw material costs
  • reduced export opportunities
• trade barriers

  gov-imposed restriction on international trade

  +:

  • protection of domestic industries - shielding from foreign competition
  • job creation

  -:

  • higher prices for consumers
  • reduced choice
• free trade

  refers to absence of barriers to international trade, such as tariffs + quotas, allowing businesses to operate on a global scale with significant restrictions

  +:

  • increased competition
  • access to wider range of goods and services

  -:

  • job displacement
  • increased income inequality
• government subsidies

  financial aids provided by the gov to business/industries to encourage production.

  lower costs or promote specific good/service

  +:

  • increased competitiveness
  • job creation

  -:

  • inefficient resource allocation
  • market distortions
  • potential for corruption and misuse
• legislation

  laws impacting how businesses operate and relationship they have with stakeholders.

  aim to protect consumers, employees and the environment

  +:

  • consumer protection
  • fair competition
  • ensure safety for all

  -:

  • increased costs
  • restriction on operations