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

3. 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.

4. 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.

5. Trade Organizations and Agreements
World Trade Organization (WTO) 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