Trade protection: restricting imports to protect domestic producers.
Protecting industries
Infant (sunrise) industries
New firms need time to grow big enough to compete. South Korea protected its young car industry in the 1970s and 1980s.
Jobs
Fewer imports mean more output, and more jobs, at home.
Anti-dumping
Dumping: selling abroad below cost. A tariff stops it wiping out home firms.
Diversification
Poorer countries can build new industries instead of relying on one export.
Animated graph
Watch the graph build step by step in study mode.
Free preview
This is the free notes preview
You're reading the free notes. Aimnova Pro unlocks the full study experience — and you can try it with your first topic free to keep:
- FlashcardsLock in vocabulary and key terms with spaced repetition.
- Practice questionsAnswer exam-style questions and get instant AI marking.
- Mock exams & past-paper vaultSit full mocks and see exactly how examiners award marks.
- Personalised study planA daily plan built around your exam date and weak areas.
Other reasons protect the whole country.
Protecting the country
National security
Food, energy and defence made at home. Japan keeps very high tariffs on rice.
Health, safety, environment
Keeping out goods that fail safety or environmental standards.
Balance of payments
Fewer imports improve the current account.
Government revenue
Tariffs raise money: important where other taxes are hard to collect.
The points to remember
- Write it like this: "A tariff raises the price of imports, so domestic output and jobs rise from Q1 to Q2."
- Name the reason, show it on the diagram, give a real example.
See how examiners mark answers
Answer exam-style questions with model answers. Learn exactly what earns marks and what doesn't.
Paper 1 asked this in November 2023, as part (a) for 10 marks.
Explain how trade protection may be used to protect against dumping and to protect an infant industry.
Model answer plan
See the answer broken into clear points, with guidance on how each point earns marks.
Animated graph
Watch the graph build step by step in study mode.
How the 10 marks are given
| Marks | What your answer needs |
|---|---|
| 9–10 | Theory fully explained, terms used correctly all the way through, the diagram included and fully explained |
| 7–8 | Theory explained, terms mostly right, the diagram included and explained |
| 5–6 | Theory partly explained, some terms, the diagram included |
| 1–4 | Theory only described or stated; few relevant terms |