Trade Barriers

What is an Embargo?

Embargos are government orders which completely prohibits trade with another country.

what are the BENEFITS of trade barriers?

-Protect domestic industries from competition. -Protect jobs. -Help provide extra income for the government. -Increase the Number of goods people can choose from. -decrease the costs of these goods through increased competition.

what are the COSTS of trade barriers?

-Tariffs increase the price of imported goods. -Less competition from world markets means there is an increase in prices. -The tax on imported goods is passed along to the consumer so the price of imported goods is higher.

What are the 3 types of trade barriers?

1)Cultural barriers - language, currency or belief system. 2) Physical barriers - mountains, deserts, canyons etc...(Example-The Alps Mountains in Europe). 3)Economic barriers - Government rules that restrict or discourage international trade. (Example-tariff, quota, embargo).

What is a Quota?

A limit on the amount of goods that can be imported.

What is a purpose of a Tariff?

A purpose of a Tariff is to raise the price of the imported product.

What is a Tariff?

A tax put on goods imported from abroad.

What is the most common trade restriction for Tariffs, Quotas, and Embargos?

Tariffs- Which are taxes on imports, Quotas- Which are limits on the quantity that can be imported, and Embargos- Which are a completed trade block usually for political purposes.

What is an example of a Tariff?

The European Union removes Tariffs between member nations, and imposes tariffs on nonmembers.

Is Embargo the hardest type of trade?

Yes