Protectionism
This term refers to government policies that restrict trade to protect domestic industries.
protectionism?
This is a tax placed on imported goods to make them more expensive
tariff
A country places a 20% tax on imported electronics to make domestic brands more competitive. What is this called?
a tariff
This global organization was created to enforce international trade rules and resolve disputes.
the World Trade Organization
This happens when companies move jobs to countries with cheaper labor costs, leaving domestic workers unemployed.
job outsourcing
One reason governments implement protectionism is to shield WHAT from foreign competition
local jobs
This is a restriction on the quantity of a particular good that can be imported.
quota
The U.S. government refuses to trade with North Korea due to political conflicts. What is this called?
an embargo
This agreement was signed in 1947 to promote free trade by reducing tariffs and other barriers.
General Agreement on Tariffs and Trade (GATT)
Some companies relocate production to countries with weak labor laws, leading to this issue, where workers face unsafe and unfair conditions.
sub-standard or poor working conditions
This economic action is taken to encourage local production by limiting import
trade barrier
This type of barrier sets safety, health, or labeling requirements for products.
product standards
The EU only allows a limited number of Japanese cars to be sold in Europe each year. What is this called?
A quota
This type of trade agreement eliminates trade barriers between member countries.
Trade bloc
Free trade can have a negative effect on nature when companies exploit resources in countries with weak environmental laws, leading to this issue.
environmental degradation or resource depletion
A government might use protectionism to prevent a country from becoming too dependent on these.
foreign suppliers
A government order that completely prohibits trade with a certain country
embargo
a government gives cash incentives to farmers so they can sell wheat at a cheaper price overseas. What is this called?
an export subsidy
This European economic agreement allows for the free movement of goods, services, people, and capital.
the European Union (EU)
This 2013 disaster in Bangladesh highlighted the dangers of poor labor conditions in outsourced factories.
the Rana Plaza collapse
Protectionism can lead to these negative consequences
higher prices, restricted consumer choice and trade wars
A financial aid given by a government to domestic companies to help them compete in global markets
export subsidy
A foreign company wants to buy a Canadian airline, but the government only allows them to own up to 25% of it. What is this called>?
FDI restriction
This North American trade agreement was designed to increase trade between Canada, the U.S., and Mexico.
NAFTA
Free trade allows global competition to enter local markets, often leading to lower prices for this group.
Consumers