Methods of Protection (HSC SSCE Economics): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Tariff
Tariff
Tax imposed by government on imported goods
Quota
Quota
Restriction on volume of imports over a time period
Subsidy
Subsidy
Cash payment from government to businesses
Tariff effect on consumers
Tariff effect on consumers
Higher prices and fewer goods available
Quota vs tariff: government revenue
Quota vs tariff: government revenue
Quotas don't directly generate revenue, tariffs do
Subsidy effect on consumer prices
Subsidy effect on consumer prices
Lower prices for consumers
Local content rules
Local content rules
Minimum percentage of locally manufactured parts required
Export incentives provide
Export incentives provide
Grants, loans, or technical advice to domestic producers
Overall effect of protectionism on global trade
Overall effect of protectionism on global trade
Reduces overall level of trade between nations
Protectionism impact on developing economies
Protectionism impact on developing economies
Larger relative impact, excluding them from markets