A government could engage in five forms of protectionism to discourage imports: 1) Import tariffs, which increase the cost of foreign goods to protect domestic competitors; 2) Regulations, such as health or safety standards, that make it difficult for foreign companies to comply; 3) Import quotas, which restrict the quantity of certain goods that can be imported; 4) Subsidies for domestic industries to help them compete against imports; 5) Direct controls on foreign exchange to limit the amount of currency available to import goods.

1. Describe briefly FIVE forms of protectionism a government could engage in to discourage
imports.
Solution
A government could engage in one of several forms of protectionism, including:
Import tariffs
Import tariffs increase the cost of foreign goods for the consumer, so protecting home
competitors whose products appear to be less costly. Import tariffs of this kind account for a
third of all protectionist measures according to the World Bank. (One recent example was called
'green protectionism' imposed by certain developed nations and involved imposing new tariffs
on imports from countries with weaker carbon emissions reduction targets than themselves. This
was seen as
being an excuse to make imports from nations such as India less attractive to home markets.)
Regulations
When a country