4.1.4

• what is protectionism?


  when a country takes action to protect its own industries by restricting trade with other countries
• what is meant by trade barriers?

  measures that government introduce to make imported goods less competitive then locally produced goods
• what are tariffs?


  taxes placed on imported goods that are not applied on domestic goods
• what are import quotas?

  an annual limit on the quantity of imported goods allowed into a country
• what are government legislations?

  a country introducing complex legal forms to discourage imports
• what are domestic subsidies?


  a sum of money given by the government to producers of a specific product
• what are some resons for protectionism?


  protects countries jobs

  helps support small businesses

  provide a layer of security for nation
• what are some reasons against protectionism?


  higher price for customers

  retaliation of other countries

  extra costs of exporters

  limited choice for customers