barriers to international trade
RESTRICTING INTERNATIONAL TRADE
Two major ways to restrict trade: Quotas, and Tariffs
A Tariff is a tax that the government puts on imports to increase trade
The types of tariffs are protective tariff, and revenue tariff
A Quota is a limit placed on the quantities of a product that can be imported
ARGUMENTS FOR PROTECTION
There are five different arguments for protection
1. National Defense
2. Promoting Infant Industries
3. Protecting Domestic Jobs
4. Keeping Money at home
5. Helping the balance at payments
All five have two groups who argue their points as to why they think their should be more or less restrictions
THE FREE TRADE MOVEMENT
Using barriers works only if other governments do not retaliate
If other countries also use barriers then our economy could be hurt
EX- In the great depression we put out a massive tariff and other countries did to and made international trade stop.
Two major ways to restrict trade: Quotas, and Tariffs
A Tariff is a tax that the government puts on imports to increase trade
The types of tariffs are protective tariff, and revenue tariff
A Quota is a limit placed on the quantities of a product that can be imported
ARGUMENTS FOR PROTECTION
There are five different arguments for protection
1. National Defense
2. Promoting Infant Industries
3. Protecting Domestic Jobs
4. Keeping Money at home
5. Helping the balance at payments
All five have two groups who argue their points as to why they think their should be more or less restrictions
THE FREE TRADE MOVEMENT
Using barriers works only if other governments do not retaliate
If other countries also use barriers then our economy could be hurt
EX- In the great depression we put out a massive tariff and other countries did to and made international trade stop.