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PROTECTIONISM - Coggle Diagram
PROTECTIONISM
Tariffs
Example
I buy a car from United States, so thecar must be imported and for this importation there is a tariff that i have to pay.
Definition
Is a tax on products imported from another country, this increase its price so the products loses attraction to buy it.
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Embargo
Example
Russia has an embago with United States, this means Russia completely refuses to trade with United States. (imaginary example).
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Subsidies
Definition
A subsidy is a direct or indirect payment to individuals or firms, the objective of this is to offset market failures and externalities in order to achieve greater economic efficiency.
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Quotas
Definition
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Example
Argentina (one of the most important and biggest importers of meat in the world) have to limit amount of kilosgrams of meat imported form other countries to 1.5 million per year