Protectionism and Free Trade (Grade 12 NSC Matric Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is import substitution?
What is import substitution?
Producing locally what was imported before
What effect does import substitution have on the balance of trade?
What effect does import substitution have on the balance of trade?
Positive effect
How does diversification benefit import substitution?
How does diversification benefit import substitution?
Manufacturing grows, less foreign reliance
What are tariffs in import substitution?
What are tariffs in import substitution?
Taxes on goods coming into the country
How do quotas work as an import substitution tool?
How do quotas work as an import substitution tool?
Strict limits on import quantities
What is the purpose of subsidies in import substitution?
What is the purpose of subsidies in import substitution?
Help local firms compete with foreigners
Why does import substitution promote industrialisation?
Why does import substitution promote industrialisation?
New industries increase tax & employment
What employment benefit does import substitution provide?
What employment benefit does import substitution provide?
Local industries expand and hire workers
How does protection affect competitiveness of sectors?
How does protection affect competitiveness of sectors?
Industries become complacent, less efficient
What is capital and entrepreneurial talent drain?
What is capital and entrepreneurial talent drain?
Resources to sectors lacking advantage