AS Level Economics- Protectionism

Overwhelming processes that an import company has to go through including paperwork, forms, procedures

• Tariff

• Excessive Administrative Burden

• Embagoes

• Export subsidies

Tax imposed on import

• Export subsidies

• Import quotas

• Tariff

• Export tariff

The limit amount of goods that can be imported

• Import quota

• Trade deficit

• Current account

• Export subsidies

An official ban on trade

• Embagoes

• Import quotas

• Balance of payment

• Excessive administrative burden

Reason for protetionism

• To protect consumers

• To protect infant industries

• To protect relationships among countries

• To protect current account

Protectionism is applied

• To prevent dumping

• To prevent trade war

• To prevent limitation of choice for customers

• To provide more goods at cheaper price and better quality

Reason against the protectionism

• Harm relationship between countries

• To prevent declining industries

• To improve the term of trade

• To provide protection from cheap labour