lesson 10.2

World Trade Organization

(WTO)International organization that regulates international trade.

Tariff

A tax on imported goods

Protectionism

Economic policy of shielding an economy from imports.

Q6 Choose one argument against protecting infant industries. Then assess the argument, describing whether you believe it is valid and whether it is a strong enough argument to eliminate protections for infant industries.

protecting infant industries can mean the bettering of a countries situation and economy helping all in the long run

Trade war

a cycle of escalating trade barriers

Embargo

a government order imposing a trade barrier

Import quota

a limit on the amount of a good that can be imported

Free trade zone

an area of a country in which trade restrictions do not apply

Q3 How would you define embargo based on context clues in the following sentence? "The purpose of this embargo was to reduce trade and weaken Cuba's communist government."

an embargo doesn't allow trading between countries in a war or trade war

Infant industry

an industry in the early stages of development

Q4 How did the free trade agreements in place today grow out of the major trade wars of the past?

forcing collaboration with war buddies in trade and resources and take overs allowing certain countries to now be fit to trade within rules

Free trade

international trade free of government interference

Sanctions

restrictions intended to enforce international law

Trade barrier

restrictions to free trade

Q7 What is your opinion on how to determine whether a company deserves protection?

smaller companies should be protected and bigger ones watched carefully

Q2 How do tariffs on U.S. goods benefit U.S. consumers?

tariffs hurt the american consumer due to the increased prices of home front goods

Q9 Some countries are not currently EU members but are candidates for membership. What are some reasons a country would want to join the EU?

the EU has valuable resources only found or better produced in said country/countries

Q8 How did the Smoot-Hawley Act lead to free trade?

the act decreased protectionism of companies thereby endorsing free trade ideals

Q10 Some people are concerned that free trade agreements give too much economic power to large multinational corporations. Do you think this argument is valid? Explain.

the argument and dangers are valid and real. Big corporations benefit most and these benefits can lead to the hindering of all consumers

Q1 How are import quotas and tariffs similar?

they both restrict the amount of imports

Q5 What reasons might local political leaders have to want to protect jobs in their area?

to ensure safety doing this by securing jobs in a stated area