International Trade: Key Terms Define the following: International Trade- Goods- Import- Export- Tariff- N.A.F.T.A.- G.A.T.T.-
International Trade: Key Terms International Trade- Goods- Import- Export- Tariff- N.A.F.T.A.- G.A.T.T.- trade between 2 or more countries Products: things you make, harvest, mine, or grow for $ goods being brought into a country goods being shipped out of a country a tax on foreign imported goods (North American Free Trade Agreement) No tariffs between U.S., Mexico, & Canada (General Agreement on Tariffs & Trade) World version of NAFTA. Not in effect.
Pros & Cons of Tariffs A tariff places a tax on foreign imported goods brought into the U.S. making them more expensive Tariffs help American manufacturers and workers by protecting them from foreign competition Also, raise $ for the government. Tariffs hurt American consumers who now have to pay more for the products that they wish to purchase. Can cause trade & business to slow down due to an increase in prices.
An example of how a tariff works Japan’s Toyota Camry costs $25,000 U.S.’s Ford Taurus costs $27,000 Which car are you buying? Add a tariff of $5,000 to the Toyota. Which car are you buying now? What could Ford do with the price of the Taurus if there was a tariff on the Camry?
Explain if President Obama should consider using tariffs on other countries’ products as a way to get Americans to buy American products and help create American jobs?