TRADE BARRIERS
______embargo
______tariff
______quota
A. TAX on imports
B. LIMITS on imports
C. CUTS OFF all trade
TRADE BARRIERS
Determine each scenario below determine the type of trade barrier and write it in the box:
The United Kingdom Customs Service has found toxic lead-based paint in toys imported from a Chinese toy-making company. These toys are intended for sale in the United Kingdom. Exposure to the paint over a long period of time could be fatal to children under 6 years old. What type of trade barrier would guarantee that no child in the United Kingdom would be exposed to the deadly lead-based paint?You are the governor of New South Wales, Australia. Living in Sydney, you have learned that surfing has a huge impact on your state’s local economy. As governor, you have two economic goals:
* Protecting local Australian surfboard manufacturers from foreign
competition,
* Generating more tax revenue for your state government.
What type of trade barrier could you use that would accomplish both of these goals?
In order to protect a nation’s car manufacturing industry from foreign car producers, the government allows 50,000 imported cars a year. This is an example of what kind of trade barrier?
An African country has decided to charge 17% more on imports from other African nations because they may have the same item to export and want to give their own citizens a trade advantage.
For six year the United Nations approved _____ to stop countries from buying diamonds from Liberia. Money from “conflict diamonds” had been used to fund wars across the continent. However, in May 2007, the UN lifted this.
In 2007 South Africa placed a limit on the amount of Chinese textiles that could be imported. Many South African textile workers had lost their jobs because of cheaper imports, and the government wanted to give South African clothing and textile businesses a good change to compete in foreign and domestic markets.
Why would a country want trade barriers such as tariffs? / Why would a country want trade barriers such as quotas?
Why would a country want a trade barrier such as an embargo? / Why would a country want free trade (no trade barriers)?
TRADE BARRIERS
___C____ embargo
___A____ tariff
___B____ quota
A. TAX on imports
B. LIMITS on imports
C. CUTS OFF all trade
TRADE BARRIERS
Determine each scenario below determine the type of trade barrier and write it in the box:
Embargo / The United Kingdom Customs Service has found toxic lead-based paint in toys imported from a Chinese toy-making company. These toys are intended for sale in the United Kingdom. Exposure to the paint over a long period of time could be fatal to children under 6 years old. What type of trade barrier would guarantee that no child in the United Kingdom would be exposed to the deadly lead-based paint?Tariff / You are the governor of New South Wales, Australia. Living in Sydney, you have learned that surfing has a huge impact on your state’s local economy. As governor, you have two economic goals:
* Protecting local Australian surfboard manufacturers from foreign
competition,
* Generating more tax revenue for your state government.
What type of trade barrier could you use that would accomplish both of these goals?
Quota / In order to protect a nation’s car manufacturing industry from foreign car producers, the government allows 50,000 imported cars a year. This is an example of what kind of trade barrier?
Tariff / An African country has decided to charge 17% more on imports from other African nations because they may have the same item to export and want to give their own citizens a trade advantage.
Embargo / For six years the United Nations approved a(n) _____ to stop countries from buying diamonds from Liberia. Money from “conflict diamonds” had been used to fund wars across the continent. However, in May 2007, the UN lifted this.
Quota / In 2007 South Africa placed a limit on the amount of Chinese textiles that could be imported. Many South African textile workers had lost their jobs because of cheaper imports, and the government wanted to give South African clothing and textile businesses a good change to compete in foreign and domestic markets.
Why would a country want trade barriers such as tariffs? / Why would a country want trade barriers such as quotas?
Protect local industry and jobs from foreign competition
- Tariffs make the foreign product more expensive because the cost of the tax is passed on to the consumer
- Quotas force consumers to buy the domestically made product because there is not a lot of the foreign product available
- Make the foreign product more expensive (supply and demand)
Why would a country want a trade barrier such as an embargo? / Why would a country want free trade (no trade barriers)?
Force a another government to change its policies or conform to international policy / Lowers the price of imported goods and services
Standard of living for the nation improves, although some jobs may be lost
Compare and Contrast Trade Barriers
Embargo
Quota Tariff
TRADE BARRIERS
Which of these trade barriers have similar goals? Explain.
Why can trade barriers be both good and bad?
Why?
Many countries put an embargo on South Africa before 1991. What political changes in South Africa were other countries trying to influence?
Read page the passage about free trade in your textbook on page R30. Why do you think free trade may benefit African nations?
TRADE BARRIERS