3 Restrictions on Imports Tariff- -tax on imports -most common restriction Two Types of Tariffs a. Revenue Tariff- -used to get government revenue - -account for less than 2% of gov’t funding b. Protective Tariff- -designed to raise cost of imports to protect industries at home. (domestic)

2. Import Quota- -restriction on the number of units of good that may be brought into a nation.

Embargo- - a complete restriction on imports and exports. Ex.- -The U.S. has had a trade embargo against Cuba for over 50 years because of Fidel Castro’s Communist government. - -The U.S. put an embargo on Syria in 2003 because of its support of terrorism.

Views on Globalization Protectionist- -believes we need trade restrictions to protect American jobs and industry. Free Trade Supporters- -exports and imports should not be restricted.

Trade Organizations and Agreements World Trade Organization (WTO)- -147 nations -agreements on limiting trade barriers -largest organization 2. North American Free Trade Agreement (NAFTA)- -trade agreement between the U.S., Mexico, and Canada - -many U.S. industries moved south of the border. 3. Central American Free Trade Agreement (CAFTA)- -trade agreement among several Central American nations and U.S. 4. European Union (EU)- -trade agreement between 25 European nations - -has its own currency - -the Euro