Trade Barrier Scenarios

In 2012, the United States Commerce Department announced that it would impose a tax ranging from 2.9% to 4.7% on Chinese made solar panels.

• tariff

• embargo

• quota

• subsidy

U.S. State Department officials confirm that the current administration has decided to continue the prohibition of all U.S. trade with Cuba.

• embargo

• quota

• tariff

• subsidy

True or False: An embargo is meant to increase the amount of trade between two countries.

• True

• False

In 2010, China placed a tax on imported American poultry of up to 105.4%. This is an example of a:

• tariff

• embargo

• market

• quota

Which might make an embargo against a country successful?

• The citizens in the country suffer because of the embargo and demand a change from their government.

• People in the country are not affected by the embargo.

• Merchants are able to continue doing business.

• The country does not need to trade with other countries.

Japanese auto firms agree to limits set in Washington D.C., on the # of Japanese cars that may be sold in the U.S.

• quota

• tariff

• embargo

• standard

In 1962, the United States prohibited all imports and exports to and from Cuba.

• embargo

• tariff

• quota

• standard

A barrier is meant to 

• encourage the flow of trade
• block or slow down trade
• make people obey the government 

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!

 The US bans beef imports from Canada after a Mad Cow Disease outbreak there. This is an example of which type of barrier to trade?

• Standards
• Quota
• Subsidy
• Tariff