Ch 24 - Free Trade and Protectionism

________ is distorted leading to inefficient use of world resources.

________ are placed on the imports of foreign competitors (tariffs, quotas and subsidies)

________: an amount of money paid by the government to a form per unit of output.

________ embargoes: marketing campaigns to encourage people to buy domestic goods.

international trade (imports and exports) without government restrictions

Protection of domestic industries against foreign competition

• Protecting domestic employment

• Protecting the economy from low cost labour

• Protecting the economy from low cost labour

• Protecting an infant (sunrise) industry

a tax that is charged on an imported good. Any tax will cause suppliers to supply less

an amount of money paid by the government to a form per unit of output

physical limit on the number of value of goods that can be imported to a country

When goods are imported there are always administrative processes

complete ban on imports

When restrictions are put on the type of goods that can sold in the domestic market

international trade (imports and exports) without government restrictions

a tax that is charged on an imported good

an amount of money paid by the government to a form per unit of output

physical limit on the number of value of goods that can be imported to a country

complete ban on imports

marketing campaigns to encourage people to buy domestic goods