Trade Barriers

1. Unit 1
Chapter 3

2. Essential Outcomes
1. Apply the concepts of Economic Systems and
Principles by:
Naming and applying the Four Basic Economic Systems
(Market, Traditional, Command, and Mixed) to the global
economy (Chapter 1)
Applying concepts of competition, scarcity, and supply and
demand to the effect on price and quantity (Chapter 2)
Comparing and contrasting embargos, tariffs, and quotas
to economic situations (Chapter 3)
Identifying the differences between the World Trade
Organization, GATT and NAFTA (Chapter 3)
Connecting key terms in the chapter with application (All
Chapters) with 85% accuracy

3. Products or services purchased from another
country.
1. WHAT ARE IMPORTS?

4. Products or services sold to another country.
2. WHAT ARE EXPORTS?

5. Measures that governments introduce to make
imported goods less competitive than locally
produced goods.
3. WHAT ARE TRADE BARRIERS?

6. Government imposes restrictions on the free
international exchange of goods or services
4. WHAT ARE TRADE RESTRICTIONS?

7. Government imposes
limits on imported
goods or services so
that local producers
5. WHAT IS THE DIFFERENCE BETWEEN
TRADE BARRIERS & TRADE
RESTRICTIONS?
can compete.
Government sets
boundaries on the
free international
exchange of goods &
services.

8. 6. WHAT ARE THE THREE TRADE RESTRICTIONS OR
TRADE BARRIERS?

9. A tax put on goods imported from abroad.
7. WHAT IS TRADE TARIFFS?

10. A limit on the amount of goods that can be
imported into a country.
8. WHAT IS TRADE QUOTAS?

11. Stops exports or imports of a product or group of
products to or from another country.
9. WHAT IS TRADE EMBARGO?

12. Global international organization dealing with the
rules of trade between nations.
10. WHAT IS THE WTO?

13. The actual rules setting conditions on trade
between nations.
11. WHAT ARE WTO AGREEMENTS?

14. WTO’s principal rule-book that contains the rules
for trading.
12. WHAT IS GATT?

15. American Free Trade Agreement which has created the
largest free trade area and richest market in the world.
12. WHAT IS NAFTA?

16. Canada, U.S. and Mexico.
13. WHAT COUNTRIES ARE INCLUDED IN NAFTA?

17. 14. WHAT IS THE DIFFERENCE BETWEEN WTO &
NAFTA?
WTO: 140
countries
around the
world.
NAFTA: US,
Canada, &
Mexico

18. Turn in your notes and then on
to your project!!!