Trade Protectionism

source of foreign exchange

sources of foreign exchange are areas in which economic and financial transactions between countries affect exchange rate levels.

subsidy (to domestic producers)

Government payment to producers attempting to lower the price of produce and increase quantity produced (encourage production). In the international trade context, the subsidy is given to domestic producers to increase their international competitiveness.

import quota

Quotas restrict the actual quantity of imports allowed into a country. A quota is a physical limit imposed upon the quantity of a good or service that may be imported over a certain period of time.

tariff

Tariffs are taxes imposed by a government on the price of imported foreign goods. It can be imposed in different ways: per unit (specific tariff) or ad valorem (percentage of the monetary value of the import)

efficient allocation of resources

That combination of inputs, outputs and distribution of inputs, outputs such that any change in the economy can make someone better off (as measured by indifference curve map) only by making someone worse off (pareto efficiency).

free trade

The unrestricted exchange of goods, services, and resources between countries, so without trade barriers such as tariffs, subsidies, quotas and administrative barriers.

trade protection

Trade protectionism is a type of policy that limits unfair competition from foreign industries. It's a politically motivated defensive measure.

economies of scale

a proportionate saving in costs gained by an increased level of production.

competition

the rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion.