Trade protectionism quizlet business
Trade Protectionism. Terms in this set (10) free trade. The unrestricted exchange of goods, services, and resources between countries, so without trade barriers such as tariffs, subsidies, quotas and administrative barriers. economies of scale. a proportionate saving in costs gained by an increased level of production. A variation of a quota is the so-called voluntary export restraint. Essentially, country A asks country B to voluntarily reduce its companies exports to country A. The term voluntarily is somewhat misleading; typically, either country B volunteers to reduce its exports or else country A may impose tougher trade regulations. Governments institute trade barriers on foreign imports to let young, domestic firms gain market share. Which of the following is an example of protectionism used to support local businesses? Your sales would likely decrease because your goods are now more expensive than those of your local counterparts