Download presentation
Presentation is loading. Please wait.
1
Trade & Trade Barriers
2
How do tariffs, quotas, and embargos serve as barriers to trade?
3
Tariffs What are tariffs? What does it do? Who does it benefit?
Taxes on imports What does it do? Raise the price of imported goods Who does it benefit? Domestic suppliers … increases demand from domestic suppliers AND increases their prices! Who collects the money from tariffs? Domestic government
4
Quotas What are quotas? What does it do? Who does it benefit?
Puts a legal limit on the amount that can be imported! What does it do? Creates shortages – which causes prices to increase Who does it benefit? Domestic suppliers … increases demand from domestic suppliers AND increases their prices! Is money collected from quotas? No
5
Embargos What are embargos? What does it do? Who does it benefit?
Prohibits trade with other nations What does it do? Bar imports FROM a foreign nation OR Bar exports TO other nations OR Both! Who does it benefit? NO ONE! Normally embargos are imposed to hurt a nation’s economy in a manner to force the nation to take a particular action Is money collected from embargos? No!
6
Take 5 … Interesting point …
The word “embargo” comes from a derivative of “embargar” which means to hinder or embarrass Therefore … looking at the origins of this word, how do you think it relates to the meaning of the word?
7
Your chart should look like this …
Trade barrier What is it? What does it do? Who does it benefit? Who collects the money? Tariffs Tax on imports Raise the price of imported goods Domestic suppliers Increases their demand Increases their prices Domestic government Quotas Limits the amount that can be imported Creates shortages thus increases price Increases demand / prices No money collected Embargos Prohibits trade with other nations Bars imports FROM other nations OR exports TO other nations No one … usually meant to hurt nation’s economy to force them to take an action
8
Your turn … When would a nation implement tariffs?
When would a nation implement quotas? When would a nation implement embargos?
9
The absence of trade barriers.
Free Trade Agreement The absence of trade barriers. What does free trade mean? Who does the US have a free trade agreement with? Today, the United States has FTAs with 17 countries, such as Israel, Jordan, Canada, Oman, and Singapore to name a few. In 2006, six new FTAs were implemented: with Bahrain, El Salvador, Guatemala, Honduras, Morocco, and Nicaragua.
10
What can we determine about our trading industry based on this chart?
11
Balance in Trade What do you think “balance in trade” means?
Why do you think this is important to a country? What do you think would be the disadvantages for countries who do not have a balance in trade?
12
Get your Quizdoms ready!! On your mark … get set …
GO!!!
13
What is a tax on imports called?
Embargos Quotas Tariffs
14
What is a limit on imports called?
Quotas Tariffs Embargos
15
What is it called when a country stops trading with another country in order to force a political change? Tariffs Quotas Embargos
16
If a country’s government wanted to make some money on imports, which barrier would they implement?
Embargos Tariffs Quotas
17
In 1973, after the 2-day Yom Kippur War, Saudi Arabia used what trade barrier against the US in order to force the US to stop supporting Israel? Embargo Tarriff Quota
18
On which country did the US impose an embargo in order to try to force the country to end apartheid?
Israel Iran Afghanistan South Africa
19
Words to know … Balance in trade Tariffs Embargos Quotas
Free trade agreement
20
Trade Barriers Tariffs Quotas Embargos Trade barrier What is it?
What does it do? Who does it benefit? Who collects the money? Tariffs ___on imports Raise the price of imported goods ____________suppliers ___________their demand Increases their prices ____________government Quotas _____the amount that can be imported Creates shortages thus ____________price Domestic suppliers ___________demand / prices No money collected Embargos Prohibits _______with other nations Bars imports FROM other nations OR exports TO other nations No one … usually meant to hurt nation’s economy to force them to take an action
21
Trade Barriers Tariffs Quotas Embargos Trade barrier What is it?
What does it do? Who does it benefit? Who collects the money? Tariffs Quotas Embargos
Similar presentations
