1. Why would Protectionism be negative in the long term?
- The revenue from tariffs may become too big for the government
- It weakens the protected industry because there would be no reason to innovate due to lack of competitors
- It means that business will get less revenue
- It can be expensive for a business to upkeep
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Other questions in this quiz
2. What is Protectionism?
- An idea formed to create competition for home industries
- Shielding a country's domestic industries from foreign competition by taxing imports
- A method to encourage imports to your country
- Removing restrictions or barriers on the fre e exchange of goods between countries
3. What is a benefit of global sourcing?
- The cost of training the new workers
- Potentially significant labour cost reductions
- Impact on existing workers
- Higher risk of loss of intellectual know-how
4. Definition of globalisation?
- "If everyone decided to travel around the globe"
- "The increased freedom and capacity of individuals and firms to undertake economic transactions with residents of other countries on a global scale"
- "The decreased freedom and capacity of individuals and firms to undertake economic transactions with residents of other countries and operate on a global scale"
- "When a business successfully enters every single market on the globe"
5. 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
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