1. What is Protectionism?
- An idea formed to create competition for home industries
- Removing restrictions or barriers on the fre e exchange of goods between countries
- Shielding a country's domestic industries from foreign competition by taxing imports
- A method to encourage imports to your country
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Other questions in this quiz
2. Definition of globalisation?
- "When a business successfully enters every single market on the globe"
- "The decreased freedom and capacity of individuals and firms to undertake economic transactions with residents of other countries and operate on a global scale"
- "The increased freedom and capacity of individuals and firms to undertake economic transactions with residents of other countries on a global scale"
- "If everyone decided to travel around the globe"
3. What is the definition of offshoring?
- Purchasing products from a different country
- The relocation of a business process from one county to another
- Distributing products in a different country than the one you produce in
- Producing products on a boat off shore
4. Advantages of being in a trading bloc:
- Products cost more for consumers because efficient producers from outside the bloc may have tariffs added to them
- It reduces the beneficial effects of specialisation
- Firms inside the bloc are protected from cheaper imports from outside e.g. EU shoe industry from China/Vietnam imports
- The benefits of free trade between countries in different blocs are lost
5. Why would Protectionism be negative in the long term?
- It weakens the protected industry because there would be no reason to innovate due to lack of competitors
- It can be expensive for a business to upkeep
- It means that business will get less revenue
- The revenue from tariffs may become too big for the government
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