Protection and Free Trade (Grade 12 NSC Matric Economics): Flashcards
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Protection (trade policy)
Protection (trade policy)
Policy discouraging imports to shield domestic industries
Free trade
Free trade
Buying/selling globally without govt interference
Infant industries
Infant industries
New industries with high costs vs mature foreign competitors
Dumping (trade)
Dumping (trade)
Selling goods abroad below production costs
Strategic industries protected during conflict
Strategic industries protected during conflict
Food, energy, defence materials
Specialisation benefit in free trade
Specialisation benefit in free trade
Countries focus on goods where they have relative advantages
Economies of scale under free trade
Economies of scale under free trade
Larger production volumes reduce unit costs globally
Free trade effect on innovation
Free trade effect on innovation
Competition encourages continuous product/process improvements
Mixed approach to trade
Mixed approach to trade
Combining selective protection with areas of free trade
Consumer choice under free trade
Consumer choice under free trade
Access to products worldwide, not just domestic goods