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Trade Barriers

This is a comparison between the different types of trade barriers.
by

Isabella Cheng

on 23 May 2011

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Transcript of Trade Barriers

Trade Barriers Tariff Embargo Quota A tax placed on goods that one nation imports from another An order designed to stop the movement of goods A limit on the amount of imported
goods that can enter a country All of these trade barriers are designed to encourage the sale of domestic goods Tariffs aren't always very effective; many people still are willing to pay higher prices for the imported goods. There is no limit on the number of goods that can be imported. Embargoes are used to hinder governments' military efforts.
They also can pressure another government to change its poor decisions. Quotas are more effective at encouranging the sale of domestic goods. Only a limited amount of goods can be imported, no matter the demand or price. Example: Several countries placed embargoes on South Africa to show their disapproval of the apartheid. Example: In the mid-to-late 20th century, the US caused Cuba to lose a lot of money by placing an embargo on them. The
US disapproved of Cuba's dictatorial and communist regime. Pretty much everything that is imported in to the U.S. has a tariff. Some examples of imported goods are: cultured pearls, grapefruits, cane sugar, cauliflower, and motor vehicles. Example: Vietnam has a quota on imported sugar. The quota as of right now is 250,000 tons, but domestic sugar manufacturers are urging the government to reduce the quota, since the domestic manufacturers do indeed have a surplus of sugar. In the June of 1985, the International Trade COmmission asked the US to use a quota to aid the shoe making industry of the United States. In this time, the domestically made shoes were overrun by foreign footwear. The proposed quota was 474 milllion pairs (non rubber) allowed in each year. The customs officer is not allowing this French imported bread cracker to pass into the US without a tariff. The added cost may help persuade consumers to buy the domestic product instead. The "bouncer" is not allowing any other French cracker imports into "Club USA", because the limit of the French imports has already been reached. Because of the discrimination against a certain kind of toast cracker, Great Breadin's trade partner, the US, has placed an embargo prohibiting trade to show disapproval of Great Breadin's actions. These are the bread crackers that were mentioned throughout the prezi. These are available for purchase at Publix and are imported from France. See? This label even proves that it is truly a French import! All pictures used in this Prezi were either taken, drawn, colored, or made by Alice Lin and Isabella Cheng. THE END
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