2. International Trade: Key Terms Define the following: International Trade- Goods- Import- Export- Tariff- N.A.F.T.A.- G.A.T.T.-

3. Pros & Cons of Tariffs A tariff places a tax on _________________________brought into the U.S. making them more __________________ Tariffs help American ____________________ and _______________ by protecting them from foreign competition Also, raises ________________ for the government. Tariffs hurt American _______________ who now have to pay more for the products that they wish to purchase. Can cause _______________________ to slow down due to an increase in_______________________.

4. An example of how a tariff works Japan’s Toyota Camry costs $25,000 U.S.’s Ford Taurus costs $27,000 Which car are you buying? Add a tariff of $5,000 to the Toyota. Which car are you buying now? What could Ford do with the price of the Taurus if there was a tariff on the Camry?

5. Explain if President Obama should consider using tariffs on other countries’ products as a way to get Americans to buy American products and help create American jobs?