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