INTERNATIONAL  TRADE
International Trade - Definition <ul><li>International trade involves the _________ of ________or services between nations...
Free Trade vs. Trade Barriers <ul><li>Nations can trade ________ with each other or there are trade. </li></ul><ul><ul><li...
Free Trade - Benefits <ul><li>When nations __________and _________, total world output or sales is _______________.  </li>...
Free Trade - Costs <ul><li>The _________ (home) country can ______ money because the foreign goods allowed into the market...
Trade Barriers – Three Types <ul><li>__________ to trade are things that hinder or get in the way of ___________. </li></u...
Trade Barriers - Economic <ul><li>The most common ________ restrictions are:  </li></ul><ul><ul><li>tariffs , which are __...
Tariffs <ul><li>A  tariff  is a _____ put on _______ imported from abroad and sometimes referred to as _____________. </li...
Quotas <ul><li>A  quota  is a _______ on the amount of _______ that can be _____________.  </li></ul><ul><li>Putting a quo...
Embargoes <ul><li>Embargoes are a _________ order which completely _________ trade with another __________. </li></ul><ul>...
Embargoes (con’t) <ul><li>The embargo is the ________ type of trade ________ and is usually enacted for political purposes...
Trade Barriers - Benefits <ul><li>Most barriers to trade are designed to _______ imports from __________a country. </li></...
Trade Barriers - Costs <ul><li>Tariffs ________ the price of ________ goods.  </li></ul><ul><li>Less _________from world m...
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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

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

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