Question

when countries trade without restrictions, this is called free trade. to try to balance the costs and benefits of international trade, some governments implement protectionist measures, or barriers that limit free trade. read the descriptions of some of the most common ones below. then follow the directions. revenue tariff: a tax on imported goods designed to generate income for a government quota: a limit on the number of a certain good that can be imported from a specific country embargo: a ban on trade with a certain country subsidy: financial assistance a country gives to local producers of goods and services health and safety regulation: a ban on the import of a good that is unsafe or contains hazardous material match the example to the type of protectionist measure being used. subsidy health and safety regulation quota embargo revenue tariff example protectionist measure some medicine from abroad has been found to be defective. the government adopts a requirement that all imported pharmaceutical goods undergo testing to ensure they meet quality standards before being sold. domestic furniture manufacturers are struggling to pay their workers a fair wage and compete with cheaper goods from overseas. the government offers financial support that allows companies to lower their prices and still make a profit. the domestic dairy industry is struggling to attract customers. the government restricts the number of gallons of milk that can be imported from a neighboring country to ensure people will buy from local sources. the government is facing a budget shortfall and must find additional sources of income. it imposes a tax on imported coffee that slightly raises prices for consumers without significantly affecting demand. another country has violated a number of international laws. the government decides to prohibit all trade with this country to express its disapproval.

Explanation:

• First example: The measure is about ensuring quality (safety) of imported pharmaceutical goods. As per the description, "Health and safety regulation" is a ban (or in this case, a requirement for testing which is a form - of regulation related to safety) on the import of goods that are unsafe.
• Second example: The government offers financial support to local manufacturers. According to the definition, "Subsidy" is financial assistance a country gives to local producers.
• Third example: The government restricts the number (limit) of gallons of milk that can be imported. Since "Quota" is a limit on the number of a certain good that can be imported.
• Fourth example: The government imposes a tax on imported coffee to generate income. As "Revenue tariff" is a tax on imported goods designed to generate income for a government.
• Fifth example: The government prohibits all trade with a country. Given that "Embargo" is a ban on trade with a certain country.

Answer:

1. health and safety regulation
2. subsidy
3. quota
4. revenue tariff
5. embargo