Government Intervention in International Trade Unit 5

Basic Methods to Limit Trade Tariffs – Tax on imported goods Quotas – Limit on quantity of imported goods – VER Regulations – FDA

How Trade Works

Support Limits on Trade National defense Infant industry Dumping Preserve domestic jobs Maintain a diverse and stable economy

History of Tariffs Smoot Hawley Act 1933 – Raised 20% NAFTA – Reduce tariffs WTO – Reduce tariffs

Results of Barriers Higher prices for consumers Inefficiency Less choice Less profit for suppliers

Free Trade PUI PUI

WTO History of WTO

Free Trade v. Fair Trade _Bw _Bw