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PROTECTIONISM, : - Coggle Diagram
PROTECTIONISM
Quotas
Definition
A quota is a government-imposed trade restriction that limits the number or monetary value of goods that a country can import or export during a particular period.
Example
For example, the Organization of Petroleum Exporting Countries sets a production quota for crude oil in order to "maintain" the price of crude oil in world markets.
Subsidies
Example
Common examples of individual subsidies include unemployment benefits, welfare payments, and government-subsidized interest rates for student loans.
Definition
A subsidy is a quantity of money given directly to companies, organizations, or individuals by the taxpayer (government). Subsidies aim to encourage production, boost exports, promote research, prevent a business from collapsing, or reduce unemployment. They are also introduced to make the price of a product more affordable to consumers.
Embargo
Definition
Official suspension of import and/or export of some specific or all goods, to or from a specific port, country, or region, for political, health, or labor related reasons, for a specified or indefinite period.
Example
For example,In the 1940s, the U.S. froze all Japanese imports and exports resulting in a huge trade loss. The embargo also included the hot commodity oil, which hit the Japanese economy hard at the time.
Tariffs
Definition
A tariff is a tax imposed by a government on goods and services imported from other countries that serves to increase the price and make imports less desirable, or at least less competitive, versus domestic goods and services.
Example
For example,On March 1, 2018, President Trump announced he would impose a 25% tariff on steel imports and a 10% tariff on aluminum. He did it to add U.S. manufacturing jobs.
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