AP Economics Lesson Plan

Restricting International Trade Tariffs (Tax on Imports) Quotas Protective Revenue Limits Dumping High enough tariff to protect less-efficient domestic industries Designed to stop trade. High enough to generate revenue but doesn’t prohibit imports Limit the number of imports Makes Imports more expensive because of a lesser supply. Selling products abroad for less than it costs to produce at home.

Arguments for Protection National Defense – a country might not be able to get critical supplies during war Promoting Infant Industries – New industries need protection before they can compete. Arguments for Protection Protecting Domestic Jobs – This is political issue, not an economic issue. Keep the money at home – the Multiplier Effect would work in the U.S. then. ????????

Activity: Race to the Bottom

Group 1 Group 2 Group 3 Group 4 Group 5 Group 6 Group 7 Group 8 Group 9 Group 10 Round 1 Round 2 Round 3 Round 4 Round 5 Total