4.1-4.2 Globalization & Interdependence

trade without restrictions or barriers to trade

• free trade

• tariff

• protectionism

• import quota

a limit on the quantities or total values of specific items that are imported in a given time period

• free trade

• tariff

• protectionism

• import quota

certain licenses, unreasonable standards of product quality, tons of paperwork

• free trade

• tariff

• export subsidies

• non-tariff barriers (NTBs)

government payments to a domestic producer of exported goods designed to help the producer

• free trade

• tariff

• export subsidies

• non-tariff barriers (NTBs)

policies that protect a nation’s businesses by limiting imports from other countries (for example, tariffs, import quotas, export subsidies, NTBs)

• barriers to trade

• free trade policies

• export policies

• barriers to exports

What is the difference between a revenue tariff and protective tariff?

• Revenue tariffs are designed to give the foreign governments money while protective tariffs protect American businesses

• Revenue tariffs are designed to give the federal government income while protective tariffs protect foreign businesses

• Revenue tariffs are designed to give the federal government income while protective tariffs protect American businesses

Which of the following is NOT an effect of tariffs?

• Decline in imports

• Tariff revenue for the govt

• Increased domestic production

• Decline in consumption

• Decreased domestic production

The United States produces a lot of steel that is used to build and support our military and national defense. The government would like to use protectionism policies to protect the U.S. steel industry from foreign competition in case we were to come into conflict with another steel-producing country. This argument for protectionism is most likely the...

• Protection-against-Dumping Argument

• Diversification-for-Stability Argument

• Military Self-Sufficiency Argument

• Infant Industry Argument

The United States is attempting to become an emerging market for electric vehicles, and our government is implementing protectionism policies to protect this new industry. We are increasing tariffs on goods used to make electric vehicles from China. This protectionism argument is most likely the...

• Protection-against-Dumping Argument

• Increased Domestic Employment Argument

• Military Self-Sufficiency Argument

• Infant Industry Argument

Imagine a country like China, which has a surplus of steel. To offload the surplus, Chinese manufacturers might sell steel in the U.S. at prices far below the cost of production. This would threaten U.S. steel producers, who cannot compete with such low prices. This protectionism argument is most likely the...

• Infant Industry Argument

• Protection-against-Dumping Argument

• Increased Domestic Employment Argument

• Diversification-for-Stability Argument