Protectionism business

What’s protectionism

Protecting a country industry from foreign competition

What are the main protectionism ways

Tarrif

Quota

Subsidy

What’s tariff

A tax on imported goods

What’s dumping

Exporting at a lower price than cost of production. Can put other countries business out of c business

What’s a quota

A physical limit on the quantity of imported goods coming into a country

What’s a dom subsidy

A payement given by the goverment to domestic producers, to lower their cost of production and increase supply

What’s the effect of protectionism

Business- protect domestic business and allow increased production, as there’s less competition. More customers will buy from dom business as there’s less they’ll stop buying internationally. But business may not be very innovate as there’s less innovation and less choice for customers