2. (R48) Trade Barriers & N.A.F.T.A.

3. Today’s Standard(s)
SS6E2 The student will give examples of how voluntary trade benefits buyers and sellers in Latin America and the Caribbean and Canada.
b. Compare and contrast different types of trade barriers, such as tariffs, quotas, and embargos.
c. Explain the functions of the North American Free Trade Agreement (NAFTA).

4. Intro to Our Essential Question……
How do trade barriers (tariffs, quotas, and embargos) hinder voluntary trade from occurring between countries?
How does the North American Free Trade Agreement (NAFTA) impact Canada’s economy and trade?

5. Human-Made Trade Barriers
Tariff – a Tax on Imported Goods (makes them more expensive & makes it less likely consumers will buy)
Quota- A Limit on the amount of goods that can be imported from another country.
Embargo- A total Ban on trade with a country – Usually motivated by politics to hurt another country economically.

6. Tariff A tax on imported goods. Import Quota
Definition
Trade Barrier-
Examples of “Natural” Trade Barriers: 1. 2. 3.
An obstacle, or something that makes trade difficult. Trade Barriers can be human-made, or natural
Dense Rainforests
Mountains
Glaciers/Ice
Tariff
Import
Quota
Embargo
A tax on imported goods.
Limits the amount of goods that can be imported from a certain country.
A ban on trade with a certain country.

7. N.A.F.T.A. (North American Free Trade Agreement)
Reduction of Trade barriers between Canada, Mexico, & USA (Tariffs, Quotas, etc.)
Intended to increase trade of goods between the countries
Feelings about the success of NAFTA are mixed

8. Return to Our Essential Question……
How do trade barriers (tariffs, quotas, and embargos) hinder voluntary trade from occurring between countries?
How does the North American Free Trade Agreement (NAFTA) impact Canada’s economy and trade?