ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Protectionism refers to government policies that restrict international trade to help domestic industries. Protectionist policies are usually implemented with the goal to improve economic activity within a domestic economy but can also be implemented for safety or quality concerns.

Detailed explanation-2: -Governments three primary means to restrict trade: quota systems; tariffs; and subsidies. A quota system imposes restrictions on the specific number of goods imported into a country. Quota systems allow governments to control the quantity of imports to help protect domestic industries.

Detailed explanation-3: -Trade Barrier: Introduction The government imposes trade barriers so that their domestic trade can flourish without any foreign impact. Trade barriers are aimed at protecting domestic jobs. They help in improving trade deficits. They protect infant industries and protect against dumping.

Detailed explanation-4: -The main types of trade barriers used by countries seeking a protectionist policy or as a form of retaliatory trade barriers are subsidies, standardization, tariffs, quotas, and licenses.

Detailed explanation-5: -Tariffs are a tax on imports. Quotas are a limit on the number of a certain good that can be imported from a certain country. Embargoes occur when one country bans trade with another country. More items