Week 17 day 2- unit 4- trade barriers

Week 17 day 2- unit 4- trade barriers

• 1.
  Good Morning 12-6-11 Write down your EQ and Homework for today. Take out your handout on the 4 economies SPONGE A mountain, a river and a valley; which of these are a trade barrier? Explain your answer.
• 2.
  Trade Barriers •EQ: What are characteristics of the three types of economic trade barriers? •How are they present in Europe? Ansley Bennett Lanier Middle School
• 3.
  International Trade Involvesthe exchange of goods or services between countries This is described in terms of – Exports: the goods and services sold to other countries – Imports: the goods or services bought from other countries
• 4.
  Free Trade Vs.Trade Barriers – Free Trade: Nothing hinders or gets in the way from two nations trading with each other. – Trade Barriers: Trade is difficult because things get in the way. There are costs and benefits related to free trade as well as trade barriers.
• 5.
  Physical Trade Barriers Geographic barriers can slow down trade between nations by making it harder and more expensive to move goods from place to place EX) Swiss Alps – to allow goods to move through Switzerland more quickly, the government is building tunnels through the mountains
• 6.
  Question #1 List/drawas many trade barriers as possible and how they would impact trade. Can you think of any more examples from Europe?
• 7.
  3 Economic TradeBarriers The most common trade restrictions are: 1. tariffs—taxes on imported goods 2. Quotas —limits on the quantity of goods that are imported 3. embargoes-- a complete ban on trading between countries
• 8.
  Question #2 Howmight these trade barriers impact European economies?
• 9.
  What is aTariff? A tariff is a tax put on goods imported from other countries The effect of a tariff is to raise the price of the imported product – It makes imported goods more expensive so that people are more likely to purchase products produced in the home country
• 10.
  Question #3 Howmight a tariff be good for a country? How might a tariff be bad?
• 11.
  Tariffs in Europe When countries outside of European Union want to sell their goods in the EU, they must pay tariffs – This makes the non-EU products more expensive than the products made by EU members • Which would you buy? EX) If a US company wants to export fruit to a country in the EU, the US company must pay a tariff (makes US fruit more expensive)
• 12.
  Quotas A quota isa limit on the amount of goods that can be imported from another country Putting a quota on a good creates a shortage, which causes the price of the good to rise. – Consumers are less likely to buy this good because it’s now more expensive than the good produced in the home country. – Quotas encourage people to buy domestic products, rather than foreign goods (boosts country’s economy)
• 13.
  Quotas in Europe The EU places a quota on the amount of steel that can be imported from certain countries – The effect is similar to a tariff, because it makes steel from those countries harder to get, and more expensive – Helps steel producers within EU sell more steel
• 14.
  Question #4 Howare tariffs and quotas different? How are they similar?
• 15.
  Embargos Government ordersa complete ban on trade with another country The embargo is the harshest type of trade barrier and is usually enacted for political purposes to hurt a country economically and thus undermine the political leaders in charge.
• 16.
  Question #5 Howwould an American embargo against China effect both America and China?
• 17.
  Embargoes in Europe Recently, EU began placing embargoes on the sale of certain weapons and other technologies to Iran – This was done because the countries of the EU suspected Iran was trying to build a nuclear bomb EU countries hope that the embargo will make it difficult for Iran to build this type of weapon
• 18.
  Question #6 Howare the three economic trade barriers present in Europe? Give examples without looking at your notes. Hi mrs pardee