Business Essentials | International Trade Barriers

International Trade Barriers

LEARNING TARGET:
Compare and contrast trade barriers (tariffs, quotas, and embargos) that may prevent voluntary trade between countries.

International Trade Barriers

Government actions can create trade barriers, which are restrictions to free trade.

Three common trade barriers are:

• Quotas

• Tariffs

• Embargoes

Multiple Choice

Which of the following is not a formal trade barrier?

• Quotas

• Tariffs

• Embargoes

• Boycotting

Quotas - a limit on trade

To regulate international trade, governments set a limit on the quantity of a product that may be imported or exported within a given period.

Tariffs - a tax on trade

Another device that governments use to control international trade is the tariff. A tariff is a tax that a government places on certain imported products.

Embargoes - a ban on trade

If a government wishes to do so, it can stop the export or import of a product completely.

Open Ended

What are three formal trade barriers?

Match

Match the following trade barriers

• A tax on trade

• A limit on trade

• A ban on trade

Tariffs

Quotas

Embargoes

• Tariffs

• Quotas

• Embargoes

Candy Trade Barriers Activity

​Rules

There will be three rounds of trade - each with different rules.

Follow the rules of each round, or you will be sent to another room with a different assignment.

Do NOT eat candy until I say it is OK (at the end of class).

Do NOT touch other people’s candy. Before you trade: both people must verbally agree.