Macro Unit 6 International Trade 2020

When one country completely stops trading with another country. Usually used as a punishment/protest against that country

• Tariff

• Quota

• Embargo

• Subsidy

Goods or services a country gets from another country

• Import

• Export

A tax on any good or service coming into a country.

• Tariff

• Quota

• Sanction

• Subsidy

When one country places restrictions on trading with another country, usually as punishment, but may not block trading with them completely

• Embargo

• Tariff

• Subsidy

• Sanctions

Goods or services a country sells to another country

• Import

• Export

All of the following are probable effects of tariffs EXCEPT:

• they make imported products more expensive

• they reduce the amount of trade between nations

• they protect domestic producers from foreign competition

• they create an incentive for countries to trade more with each other

A type of economic policy that attempt to protect businesses in a country from foreign competition, usually by putting tariffs on goods from other countries to make them more expensive

• Free trade

• Protectionism

• Interdependence

• Specialization

Free trade increases worldwide standards of living.

• True

• False

As a result of growing international economic interdependence, economic conditions and policies in one nation increasingly affect economic conditions and policies in other nations.

• True

• False

Barriers to international trade usually impose more benefits than costs.

• True

• False