Unformatted text preview: 1) My interpretation of the word "interventionist" is that the government protected the industry because of political pressure and fear that the industry was inferior and would fall. The word significantly is a stronger word than I would use because while I think it had a large part in it, there were still some other factors that came together. I think that the industry as a whole continued to make an inferior product and was unconcerned about changing many of its ways because they always felt that the government would protect them and they were 'too big to fall' (which is a term used a lot now a days). 2) Quotas are a limited, set number of a particular good that can be imported into a country. Tariffs are taxes placed on goods being imported to make it less profitable for a company to export its goods to another. Both are tough on economics because basic economics says that free trade market is always the best, but when politics and countries are involved, this can cloud things and the real world...
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- Spring '11
- Economics, auto industry, free trade market, long term answer