Wednesday, February 3, 2016 Objective: Students will be able to analyze the effects of trade barriers on economic activities Purpose: Trade barriers.

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Presentation transcript:

Wednesday, February 3, 2016 Objective: Students will be able to analyze the effects of trade barriers on economic activities Purpose: Trade barriers limit economic activity, but can also be used to protect certain parts of a nation’s economy.

Trade Barriers ways of preventing a foreign product or service from freely entering a nation’s territory tariff: a tax on imported goods quota: a set limit on the amount of a good that can be imported Many import quotas are illegal under international trade rules

Arguments for Trade Barriers Protecting jobs in a country Protecting developing industries from foreign competition

Other Trade Barriers Operating licenses Health, safety, and environmental regulations Economic Sanctions Embargo: total ban on trade with a certain nation