Trade Barriers NOT Honors.notebook February 16, 2016 Warm Up: 1. A - - PDF document

Trade Barriers NOT Honors.notebook 1 February 16, 2016

Mar 14­3:03 PM

Warm Up:

• 1. A country exports $45 billion worth of goods and services and

imports $35 billion. Describe this country's trade balance.

• 2. A country exports $100 billion worth of goods and services and

imports $150 billion. Describe this country's balance of trade.

• 3. Which of the following statements is true about a country's balance
• f payments?
• a. It includes the balance of trade for a country.
• b. It includes the transfer of money between a country and the rest
• f the world.
• c. It is composed of the current account and the financial

account.

Mar 7­12:53 PM

TRADE BARRIERS a trade restriction, preventing a foreign product or service from freely entering a nation's territory What does it sound like?

Apr 1­7:13 AM

Why might countries seek to limit trade?

• 1. Increase domestic employment
• 2. Self-sufficient military
• 3. Protect infant industries
• 4. Diversify the economy
• 5. Protect against "dumping"
• 6. Protect national security.

Mar 7­12:56 PM

• Tariff

Quota Embargo Standard Subsidy PROTECTIONISM

Mar 7­1:03 PM

Tariff a tax on an imported good or service Quota ­ a limit on how much of a product may be imported or exported (established by government) Embargo ­partial or complete prohibition of trade with another country (usually political reasons)

Mar 12­7:48 AM

Products Under US Import Quotas > Sugar and products with more than 65% sugar content > Tobaccco > Peanuts and peanut butter > Many specific dairy products (e.g. powdered milk, baby formula) > Cotton > Beef > Animal feed > Anchovies > Wire rod > Ethyl alcohol > Olives > Mandarin oranges > Tuna > Brooms

Trade Barriers NOT Honors.notebook 2 February 16, 2016

Mar 7­1:07 PM

Standards ­ expectations for minimal levels of quality to be met Subsidies ­ financial assistance given by the government to support a business or market

Mar 10­8:10 AM

HOW ARE DIFFERENT GROUPS AFFECTED BY TRADE BARRIERS?

Apr 1­7:16 AM

Closing:

• 1. Define trade barrier.
• 2. Give reasons for using trade barriers (protectionism).
• 3. Give examples of trade barriers and define them.
• 4. Explain how different groups are affected by trade

barriers.

Mar 7­1:19 PM

CASE 1: The United States produces cars and it also imports cars from other countries. Assume there are NO LIMITS to the number of Japanese cars that may be sold in the US.

• 1. Which Americans are better off? Worse off?
• 2. Which Japanese are better off? Worse off?

Mar 10­8:56 AM

CASE 2: Now assume that the US charges Japanese companies a tariff to sell their cars in this country and limits the number of cars they may import.

• 1. Which Americans are better off? Worse
• ff?
• 2. Which Japanese are better off? Worse
• ff?

Mar 10­8:59 AM

WRAP UP

Trade Barriers NOT Honors.notebook 3 February 16, 2016

Mar 15­10:50 AM

Attachments Trade Barriers Case Study.docx importing to the US.pdf