Question

Which of the following actions might be part of a protectionist economic policy?
A.
reducing barriers to trade
B.
signing free trade agreements
C.
cutting tariffs on imported goods
D.
establishing quotas on imports

Answer 1

Establishing quota on imports is a part of protectionist economic policy

• Protectionism, a policy of defending the domestic economy from international competition by means of tariffs, subsidies, import quotas or other limitations or disadvantages levied on foreign competitors' imports.
• Import quotas are non-tariff barriers imposed to limit the commodity quantity that can be imported for a given period of time. The goal is to limit the supply of the stated commodities supplied by the exporter to the importer.
• Dumping, which happens when foreign producers sell commodities at rates lower than the cost of output, may also be avoided by quotas.