Protectionism (Tariffs) - 4.1.4
Tariffs - a tax or duty that raises the price of imported products. Protectionism - is any attempt by a country, trade bloc or region to impose restrictions on the import of goods and services. Dumping - Over-production in developed countries may be released into the markets of developing nations which undercuts domestic prices and domestic producers may be forced to leave the market. Balance of payments = Exports - Imports. This explains the financial relationshio between the UK and rhe rest of the world. A country may use protectionist measures, because of a concern about trade imbalances (too many imports compared to few exports), to protect jobs or to protect politically sensitive industries such as shipbuilding. A tariff is a tax or duty that raises the price of imported products. The price rise is likely to reduce demand for the item and also encourage local entrepreneurs to produce more. For example, according to BBC News, in March 2016 the US imposed a 500% ...