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6. 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
7. Give some examples of trading blocs:
- BFC, NFFC, & SMO
- PTO, the BU, & AZEAN
- The EU, ASEAN, & NAFTA
- EQ, HTO, & TSFC
8. What is a benefit of global sourcing?
- Impact on existing workers
- Potentially significant labour cost reductions
- Higher risk of loss of intellectual know-how
- The cost of training the new workers