Protectionism

What is protectionism?

• Promoting free trade

• Encouraging international cooperation

• Restricting imports through trade barriers

• Promoting global economic growth

Which of the following is a trade barrier?

• Tariffs

• Subsidy

• Free trade

• Cooperative advantage

Answer explanation

What is a tariff?

• A payment made by foreign government

• Financial incentives for domestic producers

• Tax on imports

• A trade agreement

Protectionism is often driven by the desire to:

• Lower domestic prices for consumers

• Increase competition in the global market

• Protect domestic industries from foreign competition

• Promote efficient allocation of resources

Which term refers to a limit on the quantity of a specific import?

• Trade surplus

• Quota

• Tariff

• Subsidy

What is a potential downside of protectionism?

• Boosting domestic industries

• Encourage international cooperation

• Reduced consumer choices and higher prices

• Promoting global economic growth

Which of the following is a purpose of implementing tariffs?

• Encouraging imports

• Stimulating domestic production

• Reducing domestic employment

• Promoting global competition

How do tariffs affect consumers?

• Consumer has to pay higher prices

• Consumer has to pay lower prices

• Tariffs only affect luxury goods

• Tariffs have no effect on consumers

Which country would benefit from imposing a tariff on imported goods?

• The exporting country

• The importing country

• Both the importing and the exporting countries

• Neither the importing nor the exporting country

What do import quotas achieve that tariffs might not?

• Encourage export subsidies

• Promote free trade

• Generate government revenue

• Restrict the imports