Unit 4  Trade  Barriers  Powerpoint  N O T E S 2
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Unit 4 Trade Barriers Powerpoint N O T E S 2

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    Unit 4  Trade  Barriers  Powerpoint  N O T E S 2 Unit 4 Trade Barriers Powerpoint N O T E S 2 Presentation Transcript

    • INTERNATIONAL TRADE
    • International Trade - Definition
      • International trade involves the _________ of ________or services between nations.
      • This is described in terms of
        • ________: the goods and services _______in foreign markets.
        • ________: the goods or services _________ from foreign producers.
    • Free Trade vs. Trade Barriers
      • Nations can trade ________ with each other or there are trade.
        • _______Trade : Nothing ________ or gets in the way from two __________trading with each other.
        • Trade __________ : Trade is __________ because things get in the way.
      • There are _______ and _________ related to free trade as well as trade barriers.
    • Free Trade - Benefits
      • When nations __________and _________, total world output or sales is _______________.
      • Companies can produce for foreign markets as well as ________ markets (markets in the home country).
      • This means there is potential for making more __________as there are more _________ to _______ goods or __________ in.
      • More variety of __________ are available from a _________ market than just a __________ market.
      • Prices of goods are ___________through increased ____________.
    • Free Trade - Costs
      • The _________ (home) country can ______ money because the foreign goods allowed into the market __________ competition and make it _____ likely people will buy ________ products.
        • Example: In the U.S., people might want to buy a foreign automobile like a Honda or Toyota instead of an American made car.
      • Increased ___________ means ________ prices.
      • Less money will go into the __________ market place and this can cause _________ to be ________ and jobs to be ___________.
    • Trade Barriers – Three Types
      • __________ to trade are things that hinder or get in the way of ___________.
      • They can be _______, physical , or _________
        • Cultural barriers : ________, currency, or beliefs.
        • Physical barriers : _________, rivers, etc.
          • Example: The ________ Mountains in Europe
        • ____________ barriers : government rules that _______, block or discourage _____________ trade between countries.
    • Trade Barriers - Economic
      • The most common ________ restrictions are:
        • tariffs , which are ______ on _________.
        • quotas , which are ________ on the quantity that can be _________.
        • embargos, which are a complete ________ block usually for _________ purposes.
    • Tariffs
      • A tariff is a _____ put on _______ imported from abroad and sometimes referred to as _____________.
      • It is the most _______ and most familiar _______of trade restriction.
      • The effect of a tariff is to ________ the price of the ____________ product.
      • It makes imported goods more __________ so that people are more likely to purchase _________ __________.
      • The money received from the tariff is _________ by the ___________ government.
    • Quotas
      • A quota is a _______ on the amount of _______ that can be _____________.
      • Putting a quota on a good creates a _________, which causes the _______ of the good to ______ and makes the ___________ goods less __________for buyers. This encourages people to _______ domestic ________.
      • A quota on shoes, for example, might limit foreign-made shoes to 10,000,000 pairs a year. If Americans buy 200,000,000 pairs of shoes each year, this would leave most of the market to ____________producers.
    • Embargoes
      • Embargoes are a _________ order which completely _________ trade with another __________.
      • If necessary, the ________ actually sets up a __________ to prevent ________ of merchant ships ______ and out of shipping ports.
    • Embargoes (con’t)
      • The embargo is the ________ type of trade ________ and is usually enacted for political purposes to ______ a __________ economically and thus undermine the _________ _________ leaders in charge.
      • Such was the case with the _________ embargo which has been in place since the 1960s.
    • Trade Barriers - Benefits
      • Most barriers to trade are designed to _______ imports from __________a country.
      • Trade barriers provide many _________:
        • Protect ___________ industries from competition.
        • Protect ________.
        • help provide ________ _______for the government.
        • __________ the number of ________ people can choose from.
        • __________ the costs of these goods through increased_________.
    • Trade Barriers - Costs
      • Tariffs ________ the price of ________ goods.
      • Less _________from world markets means there is an _________ in the price.
      • The _____ on imported goods is passed along to the ________ so the price of imported goods is _________.