Trade Protectionism (Edexcel A-Level Economics A): Flashcards

Measures restricting trade to protect domestic industries

A tax imposed on imported goods

Limit on quantity of exports to another country

New industry needing short-run protection to become competitive

Declining industry needing protection for displaced workers

Selling products abroad below cost to gain market foothold

Areas B and E

Tariff: govt revenue; Quota: foreign producers get quota rent

Firms fail to minimise costs due to lack of competition

Govt measures/regulations that inhibit international trade