The nature of protectionist policies, such as: tariffs, quotas and export subsidies
Protectionism means a government restricting imports or boosting exports to shield domestic industries from foreign competition. The main tools are tariffs, quotas, and export subsidies.
Real World
The US imposed 25% tariffs on imported steel in 2018, raising costs for American manufacturers who used steel but protecting domestic steelmakers like Nucor from cheaper Chinese competition.
Exam Focus
When asked to 'explain' a policy, state the mechanism — how the tariff/quota actually raises price or limits supply — not just its name.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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