Economics HL
4
Chapters
117
Notes
Unit 1 - Intro To Econ & Core Concepts
Unit 2 - Microeconomics
Unit 3 - Macroeconomics
Unit 4 - The Global Economy
Unlocking The Power Of Free Trade Key Benefits Explained
Unlocking Trade Secrets: Absolute vs. Comparative Advantage
Understanding Tariffs Impacts on Domestic Corn Market
Impact Of Quotas On Import Volumes A Deep Dive
Understanding Production vs. Export Subsidies An In-depth Analysis
Decoding Administrative Trade Barriers Protection or Impediment
The Downfalls Of Protectionism A Comprehensive Overview
Unlocking The Secrets Of Global Trade Agreements
Trading Blocs Building Blocks or Stumbling Blocks for WTO
Understanding Monetary Unions And The Role Of The WTO
Understanding Exchange Rate Systems: Fixed, Floating, and Managed
Understanding Currency Fluctuations Causes & Effects
Understanding The Impacts Of Exchange Rate Changes
Understanding Fixed Exchange Rates How Central Banks Intervene
Managed Exchange Rates: A Deep Dive into Currency Systems
Fixed vs. Floating Exchange Rates Pros & Cons Explored
Decoding the Balance of Payments Key Components Explained
How Current & Financial Accounts Affect the Exchange Rate
Understanding Persistent Current Account Deficits: Causes & Impacts
Effective Strategies To Correct Current Account Deficits
Unlocking Sustainable Development: A Deep Dive into Its Meaning and Goals
Unraveling Economic Development Beyond GDP
Understanding The Washington Consensus: Market-Based Growth Policies
The Critical Role of Health, Education, and Infrastructure in Growth and Development
Understanding Foreign Aid: Impact, Motives, and Evaluation
Social Enterprises: Pioneering Change in Developing Countries
Understanding The Vicious Cycle Of Poverty: Key Barriers To Development
Unlocking Development: Why Institutions Matter
Economics HL
Unit 4 - The Global Economy
The Downfalls Of Protectionism A Comprehensive Overview
535 words
3 mins read
Last edited on 5th Nov 2024
Table of content
Inefficiency breeds monopoly power
- What's Happening: Domestic firms face less competition, leading to more power for them and less efficiency.
- Real-World Example: Imagine a local burger joint that's the only one in town. Without competition, they can serve soggy fries, and what are you going to do about it? Nothing!
- In Simple Terms: No competition = Lazy businesses.
Prices skyrocket for buyers
- What's Happening: Higher prices for domestic firms lead to less money for households to spend on other goods and services.
- Real-World Example: If the only phone brand available in your country is super expensive, you'll have less money to buy those cool sneakers.
- In Simple Terms: Expensive things at home = Less money for other fun stuff.
Rising production costs & inflation
- What's Happening: Protectionism makes raw materials expensive, leading to cost-push inflation.
- Real-World Example: If car factories have to pay more for steel due to tariffs, the price of cars goes up. Vroom, vroom...inflation!
- In Simple Terms: Importing gets costly = Everything gets costly.
Bad news for export-oriented firms
- What's Happening: Protectionism makes it tough for companies that sell goods abroad.
- Real-World Example: Imagine the USA's Harley-Davidson bikes becoming expensive due to steel tariffs. Sales drop, and so do jobs.
- In Simple Terms: Protectionism = Less competitive internationally.
Potential trade wars
- What's Happening: Other countries may respond with their tariffs.
- Real-World Example: USA vs. China in a tariff tug of war. Spoiler alert: nobody wins!
- In Simple Terms: Start a tariff battle = Everybody gets hurt.
Unlock the Full Content! 
Dive deeper and gain exclusive access to premium files of Economics HL. Subscribe now and get closer to that 45 🌟
Economics HL
Unit 4 - The Global Economy
The Downfalls Of Protectionism A Comprehensive Overview
535 words
3 mins read
Last edited on 5th Nov 2024
Table of content
Inefficiency breeds monopoly power
- What's Happening: Domestic firms face less competition, leading to more power for them and less efficiency.
- Real-World Example: Imagine a local burger joint that's the only one in town. Without competition, they can serve soggy fries, and what are you going to do about it? Nothing!
- In Simple Terms: No competition = Lazy businesses.
Prices skyrocket for buyers
- What's Happening: Higher prices for domestic firms lead to less money for households to spend on other goods and services.
- Real-World Example: If the only phone brand available in your country is super expensive, you'll have less money to buy those cool sneakers.
- In Simple Terms: Expensive things at home = Less money for other fun stuff.
Rising production costs & inflation
- What's Happening: Protectionism makes raw materials expensive, leading to cost-push inflation.
- Real-World Example: If car factories have to pay more for steel due to tariffs, the price of cars goes up. Vroom, vroom...inflation!
- In Simple Terms: Importing gets costly = Everything gets costly.
Bad news for export-oriented firms
- What's Happening: Protectionism makes it tough for companies that sell goods abroad.
- Real-World Example: Imagine the USA's Harley-Davidson bikes becoming expensive due to steel tariffs. Sales drop, and so do jobs.
- In Simple Terms: Protectionism = Less competitive internationally.
Potential trade wars
- What's Happening: Other countries may respond with their tariffs.
- Real-World Example: USA vs. China in a tariff tug of war. Spoiler alert: nobody wins!
- In Simple Terms: Start a tariff battle = Everybody gets hurt.
Unlock the Full Content!
Dive deeper and gain exclusive access to premium files of Economics HL. Subscribe now and get closer to that 45 🌟
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