Presentation on theme: "Brain Jogger (You don’t need to write this) Find where two pieces of your clothing/accessories are made. You will find the information on the label. Put."— Presentation transcript:
Brain Jogger (You don’t need to write this) Find where two pieces of your clothing/accessories are made. You will find the information on the label. Put the two countries in your brain jogger. (Ask a friend close by to check your tag)
Chances are some of the items on your list are imported from other countries. Everyone is affected by international trade!!!
International Trade 1.How do you benefit from being able to buy goods made in other countries? 2.Would you favor a law that would raise the price on T-shirts and to keep your friends job?
Countries establish rules to restrict trade in order to protect their own industries or new industries, to protect jobs, and to gain income for the government. For example, in the 1970s, unions and U.S. automobile manufacturers supported quotas on less expensive imported cars to help keep their own products competitive.
Trade Barriers… Mountains, Deserts, War Zones But that’s not all…………………………….
Definitions: Tariff: A tax on imported goods. Quotas: A limit on the quantity of imports. Embargo: Stop trade with a certain country.
Examples in Europe Tariff: Countries outside of the EU must pay a tax to sell goods inside the EU Quota: The EU places a quota on the amount of steel that can be imported. Embargo: During the Cold War, the U.S. placed an embargo on the Soviet Union
Cases Match the scenario with the economic action. 1. A tax of 15% makes jewelry from Mexico more expensive than jewelry made in the United States. 2. Syria attacks Israel for no reason, and the United States stops trade with Syria 3 Korea may export only 15,000 automobiles a year to the United States. Tariff Embargo Quota
The German Potato Growers Association is concerned about increased competition from imported potatoes that are larger than those grown within Germany’s borders. The Association wants to lobby for a trade barrier. Some members think a tariff or quota would be most beneficial. Others disagree and suggest an embargo would be best. The president of the association must send a letter to the membership explaining which trade barrier (tariff, quota, or embargo) he thinks would help the German growers achieve their goal to reduce competition from imported potatoes. He wants your advice. Which trade barrier would you recommend?
Give me an imaginary example of an embargo, tariff, and a quota. (3 examples total) Please give me real countries with real products.