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    What Do You Think This Picture Is Saying?

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    asif
    The examples are imposing: 1. Tariff 2. Embargo 3. Quota

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    What Do You Think This Picture Is Saying?

    Uploaded by

    asif
    81 views10 pages
    The examples are imposing: 1. Tariff 2. Embargo 3. Quota

    Original Description:

    trade barrier ppt

    Original Title

    trade barriers

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    The examples are imposing: 1. Tariff 2. Embargo 3. Quota

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    81 views10 pages

    What Do You Think This Picture Is Saying?

    Uploaded by

    asif
    The examples are imposing: 1. Tariff 2. Embargo 3. Quota

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 10

    What do you think this picture is saying?

     What is a trade barrier? What is a


    physical trade barrier?
    A trade barrier is an obstacle to (or
    something that stops) trade
    A physical trade barrier is a natural
    barrier like mountains, rainforests,
    deserts
     Why would countries use trade
    barriers? List 2 reasons!
     Riddle-
     What is so fragile, even saying its name can
    break it?
    Trade Barrier 1: Tariffs
     A tariff is a tax on imported products or
    services. In the case of tariffs imposed by the
    United States, the business that imports or
    produces the foreign product must pay the tax to
    the U.S. government. The tariff revenue goes
    directly to the U.S. Treasury.

    Draw a dollar sign


    next to tariff so you
    remember, Tariff =
    taxes = money
    Example of a Tariff
    Two companies sell athletic shoes in the US.
    Company 1 is located in Brazil.
    Company 2 is in Hershey, Pennsylvania.
    A tariff must be paid on all shoes made outside
    the US and sold in the US.
    The tariff is 10% of all sales. Both companies sell
    shoes at a price of $100 per pair
    1. Which company must pay the tariff? Which
    company benefits from the tariff?
    2. How much will the tariff cost the company?
    3. Who receives the revenues generated by the
    tariffs?
    Trade Barrier 2 - Quota
     A quota is a limit on the amount of goods
    that can be imported. Putting a quota on a
    good creates a shortage (or a scarcity), which
    causes the price of the good to rise and allows
    domestic (inside the country) producers to raise
    their prices and to expand their production.

    Draw a slow
    down sign so
    you remember
    Quota is a way
    to limit or slow
    down trade
    Example of Quota
    Germany has imported 2 million tons of steel from
    France every year for the past decade.
    Germany then started an import quota on steel.
    Germany now only imports around 1 million tons of
    steel from France, but the country of Germany still
    uses around 3 tons of steel a year.
    1. How will this impact German steel companies?
    2. How will this impact French steel companies?
    3. Why would a country do this?
    Embargo
     An embargo stops exports or imports
    (sending goods to another country and getting
    goods from another country) of a product or
    group of products. Sometimes all trade with a
    country is stopped, usually for political reasons.

    Draw a stop sign


    so you remember
    that an embargo
    means countries
    stop trading with
    others
    Example of Embargo
    Last year Spain had some political disagreements
    with Greece, so they enacted an embargo
    against Greece. With the embargo, no Greek
    ships are allowed in Spanish ports.
    1. How will this impact Greece?
    2. Why would Spain want to do this?
    3. Will Spain benefit from this decision?
     Decide what kind of barrier is being imposed in
    the following examples…

    1. A tax of 15% makes jewelry from Mexico more


    expensive than jewelry make in the United States.

    2. The European Union prohibits the importing of meat


    products from animals treated with growth-promoting
    hormones.

    3. Korea may export only 15,000 automobiles a year to the


    United States.
     Decide what kind of barrier is being imposed in
    the following examples…

    1. A tax of 15% makes jewelry from Mexico more


    expensive than jewelry make in the United States.

    2. The European Union prohibits the importing of meat


    products from animals treated with growth-promoting
    hormones.

    3. Korea may export only 15,000 automobiles a year to the


    United States.

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