Trade Barriers

Goods and services a country produces and sells to other countries

• imports

• exports

• demand

• supply

Goods and services brought in from other countries

• supply

• exports

• imports

• tariff

A tax on imports

• tariff

• import tax

• supply

• embargo

A limit to the number of imports that may enter a country

• tariff

• embargo

• demand

• quota

Rules used to try to limit trade with other countries

• embargo

• tariff

• trade barriers

• quota

Which is an example of a quota?

• The U.S. stops trade with China.

• The U.S. limits the amount of foreign cars brought into our country.

• The U.S. pays a high tax on BMW cars brought into the country.

Which is an example of a trade barrier?

• Japan is allowed to send as many electronic products to the U.S. as they want.

• The U.S. freely trades with other countries with no restrictions.

• A high tax is placed on all diamonds received from Africa.

Specialization is

• dependence on others to get products you do not produce and needing to purchase items from them.

• items purchased from other countries.

• items sold to other countries.

• producing specific goods and less goods faster, cheaper and better than others can.

Interdependence means

• items purchased from other countries.

• a country must trade their specialty with another country to import that country's specialty. Trading is required to get al of the items we need.

• producing certain goods very well and for a reduced cost.

• items sold to other countries.

Why would a country impose a tariff or quota on imported goods?

• to raise the price of imported goods and encourage people to buy local
• to raise the price of imported goods to help other countries make more money
• to be mean!