1. Trade Barriers

2. Activator: What type of trade barrier? Sanctions have been a regular feature of U.S. policy towards Iran for more than three decades. Five administrations have imposed sanctions on Iran, all in response to Iranian actions, at first because of Iranian sponsorship of terrorism and then because of concern about Iran’s ambitions to acquire weapons of mass destruction. A Ban on Iranian oil imports, followed by blocking all $12 billion in Iranian government assets in the United States.

3. 3 Types of Trade Barriers

4. Candy Sale Who wants some candy?? Raise your hands

5. How Much? Today, I’m running a special. I paid about 5 cents a piece.  But I have to charge you a tax. I’ll sell it for $1 dollar a piece. Who still wants some? Why not?

6. How Many? Okay, I’ll sell it for 5 cents a piece. (you can owe it to me if you don’t have the money) Who wants some now? Okay, oops, I forgot to tell you, I can only sell 5 pieces. After 5 pieces, I can’t sell anymore.  I’m only allowed to sell 5 pieces

7. To Who? Okay, who still wants some? I’ll sell candy to everyone whose last name begins with C. If your last name doesn’t begin with “C” then I refuse to sell you candy. Sorry!

8. Trade Barriers Trade Barriers keep products from being bought and sold between countries. There are 3 major types of trade barriers Tariffs Quotas Embargoes  They “hinder” (stop, or slow down) global trade.

9. Tariffs Tariffs are taxes charged for goods that leave or enter a country  In order to get a product from another country, you have to pay extra for it.  Just like sales tax Think of how many goods the United States imports. How do you think tariffs might affect the economy? How do you think this affects world trade?

10. Quotas A quota is when a country limits the amount of a product that can be sold to another country.  EX: A country might limit the amount of sugar sold to other countries to 50 tons per year.

11. Embargoes An embargo is when one country completely refuses to trade with another country.  EX: We used to have an embargo with the Soviet Union  EX: We now have an embargo with Cuba This is usually done between two countries that don’t like each other. How do you think this affects the targeted country’s economy? (ex: Iran, Cuba)