Here are 20 key terms relating to barriers to trade (protectionism). Check your understanding with this updated Quizlet Revision Activity!
Ad valorem tariff
An import tax charged as percentage of the price
Regulations on imports such as animal welfare standards and energy efficiency requirements
Tariff on goods deemed to be causing injury to domestic producers of competing products
When a country deliberately intervenes to drive down the value of their currency to improve price competitiveness
Countries that have free trade between them but apply a common external tariff to imports
Occurs when goods are exported at a price less than their normal value or at less than production cost.
A complete ban on importing a good perhaps done on grounds of consumer protection
Limits on foreign exchange that can move between countries - also known as capital controls
Payment to a domestic firm to encourage them to sell surplus output in another country
The need to obtain a permit for importing a product
Infant industry argument
Protectionism for a fledgling sector to allow them to develop a cost advantage / economics of scale
Local content law
Requirement that products sold in a particular country be at least partly made there
Attempts to distort trade via state aid, bail-outs, laws on takeovers and managed currencies
Physical limit on the quantity of a good that can be imported into a country
A set amount (e.g. £s, $s) per unit imported
Voluntary export restraint
Where two countries make an agreement to limit the volume of their exports to one another
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