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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