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Development in an African Context

Economic factors influencing development

  • 3 things to know
  • A2 Unit 4

Overview

Free trade, quota in trade policy and trade bloc.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

Define free trade.

Key term

What is a tariff?

Key term

What is a quota in trade policy?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Define free trade.

    Model answer

    Free trade is international trade conducted without tariffs, quotas or other government restrictions.

  2. 2

    What is a tariff?

    Model answer

    A tariff is a tax imposed on imported goods, which raises their price relative to domestic products.

  3. 3

    What is a quota in trade policy?

    Model answer

    A quota is a limit on the quantity of a good that may be imported over a given period.

  4. 4

    Define protectionism.

    Model answer

    Protectionism is the use of tariffs, quotas and subsidies to shield domestic producers from foreign competition.

  5. 5

    Explain how agricultural subsidies in rich countries harm producers in poorer ones.

    Model answer

    Subsidised output is sold cheaply on world markets, so unsubsidised farmers elsewhere cannot compete even where they are more efficient.

  6. 6

    What is a trade bloc?

    Model answer

    A trade bloc is a group of countries that have agreed to reduce or remove trade barriers between themselves.

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