MODERN TRADE BARRIERS

What is a trade barrier? A trade barrier is a way to limit what can be traded to their people and with whom their people can trade. Examples: Tariffs, import quotas, and embargoes.

Tariff Definition – A tax on imports. When countries outside of the European Union want to sell their goods in the EU, they must pay a tariff. The tariff makes the imported good cost more. How does this help the EU?

Import Quota Definition – A limit on the number of goods that can be imported from a certain country. The EU places a quota on the amount of a good that can be imported from certain countries. It makes that good from those countries harder to get, and thus, more expensive. How does this help the EU?

Embargo Definition – A ban on trade within a certain country. It is normally put in place for political reasons. The EU places embargos on the sale of certain goods like weapons. They do this so that it will be harder for countries outside the EU to get these items. How does this help the EU?

Ticket Out the Door 1. What is the definition of a trade barrier? 2. What are the 3 types of trade barriers? 3. Which trade barrier is a limit on the number of goods that can be imported from a certain country? 4. Which trade barrier is a ban on trade within a certain country? 5. Which trade barrier is a tax on imports? 6. Give an example of a trade barrier that cannot be moved.

Currency Converter Convert the 3 items below into the currency of the different countries provided. Big Mac - $4.00 CD - $12.00 Video Game - $50.00 When you are done converting these, flip over to the back and list 2 positives of countries having one currency like the Euro and 2 negatives as well.