Protectionism - chapter 69 (key terms)

Administrative barriers

Rules and regulations (such as trading standards and strict specifications) that make it difficult for importers to penetrate an overseas market

Dumping

Where an overseas firm sells large quantities of a product below cost in the domestic market

Embargo

A complete ban on international trade - usually for political reasons

Import quota

A physical limit on the quantity of imports allowed into a country

Infant industries

New industries that have yet to establish themselves

Protectionism

An approach used by a government to protect domestic producers

Subsidy

Financial support given to a domestic producer to help compete with overseas firms

Tariffs/customs duties

A tax on imports to make them more expensive

Trade barriers

Measures designed to restrict trade