Good Morning 12- 6-11 SPONGE SPONGE A mountain, a river and a valley; which of these are a trade barrier? Explain your answer. Write down your EQ and Homework for today. Take out your handout on the 4 economies
Transcript
1. Good Morning 12-6-11 Write down your EQ and Homework for
today. Take out your handout on the 4 economies SPONGEA mountain, a
river and a valley; which of these area 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 BennettLanier Middle School
3. International Trade Involves the 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/draw as many trade barriers as possible and
how they would impact trade. Can you think of any more examples
from Europe?
7. 3 Economic Trade Barriers The most common trade restrictions
are: 1. tariffstaxes 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 How might these trade barriers impact European
economies?
9. What is a Tariff? 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 How might 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. QuotasA quota is a limit on the amount of goods thatcan be
imported from another countryPutting 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 its now more expensive than
the good produced in the home country. Quotas encourage people to
buy domestic products, rather than foreign goods (boosts countrys
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 How are tariffs and quotas different? How are
they similar?
15. Embargos Government orders a 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 How would 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 How are the three economic trade barriers
present in Europe? Give examples without looking at your notes. Hi
mrs pardee