Trade Barriers NOT Honors.notebook February 16, 2016 Warm Up: 1. A country exports $45 billion worth of goods and services and imports $35 billion. Describe this country's trade balance. TRADE BARRIERS 2. A country exports $100 billion worth of goods and services and What does it sound like? imports $150 billion. Describe this country's balance of trade. a trade restriction, preventing a foreign product or service from freely entering 3. Which of the following statements is true about a country's balance of payments? a nation's territory a. It includes the balance of trade for a country. b. It includes the transfer of money between a country and the rest of the world. c. It is composed of the current account and the financial account. Mar 143:03 PM Mar 712:53 PM ����������������������� Why might countries seek to limit trade? Tariff Quota Embargo 1. Increase domestic employment Standard Subsidy 2. Self-sufficient military 3. Protect infant industries 4. Diversify the economy 5. Protect against "dumping" PROTECTIONISM 6. Protect national security. Apr 17:13 AM Mar 712:56 PM Products Under US Import Quotas Tariff > Sugar and products with more than 65% sugar content a tax on an imported good or service > Tobaccco > Peanuts and peanut butter Quota > Many specific dairy products (e.g. powdered milk, baby formula) > Cotton a limit on how much of a product may be > Beef imported or exported (established by > Animal feed government) > Anchovies > Wire rod Embargo > Ethyl alcohol > Olives partial or complete prohibition of trade with > Mandarin oranges another country (usually political reasons) > Tuna > Brooms Mar 71:03 PM Mar 127:48 AM 1
Trade Barriers NOT Honors.notebook February 16, 2016 Standards HOW ARE DIFFERENT expectations for minimal levels of quality to be met GROUPS AFFECTED BY TRADE BARRIERS? Subsidies financial assistance given by the government to support a business or market Mar 71:07 PM Mar 108:10 AM CASE 1: Closing: The United States produces cars and it also imports cars from other countries. Assume there 1. Define trade barrier. are NO LIMITS to the number of Japanese cars 2. Give reasons for using trade barriers (protectionism). that may be sold in the US. 3. Give examples of trade barriers and define them. 1. Which Americans are better off? Worse off? 4. Explain how different groups are affected by trade barriers. 2. Which Japanese are better off? Worse off? Apr 17:16 AM Mar 71:19 PM CASE 2: WRAP UP Now assume that the US charges Japanese companies a tariff to sell their cars in this country and limits the number of cars they may import. 1. Which Americans are better off? Worse off? 2. Which Japanese are better off? Worse off? Mar 108:56 AM Mar 108:59 AM 2
Trade Barriers NOT Honors.notebook February 16, 2016 Mar 1510:50 AM 3
Attachments Trade Barriers Case Study.docx importing to the US.pdf
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