Protectionism (Edexcel A-Level Business): Flashcards

Govt restricts trade to protect domestic producers

Taxes on imported goods to make them more expensive

Physical limit on quantity of imports allowed into a country

Foreign firms sell products below cost in domestic market

New industries that have yet to establish themselves

Complete ban on imports, usually for political reasons

Rules & regulations making it hard for importers to enter

Financial support to domestic producers to help compete

Only work when demand is price elastic

Countries retaliate with own barriers, harming all parties