TRADE

BARRIERS
CLASS 2
QUICK REVIEW - WHAT IS THE
TRADE BARRIER?
1. A tax of 15% makes jewelry from Mexico more expensive
than jewelry make in the United States.
2. Korea may export only 15,000 automobiles a year to the
United States.
3. The rungs on the ladder of any bulldozer sold in Germany
must be 12 inches apart, but US manufacturers generally make
the rungs 15 inches apart.
4. A new textile firm asks its government to provide financial
assistance to make it possible to sell its products overseas at
a lower price that will compete well in other countries.
tariff
quota
standards
subsidy
WHAT ARE THE OTHER TYPES
OF TRADE BARRIERS?
Embargos
Licenses
WHY DO COUNTRIES IMPOSE
TRADE BARRIERS?
https://www.youtube.com/watch?v=Y2X3KPilAt0
Name the 6 reasons why a county would restrict trade.
NAME 5 REASONS WHY
COUNTRIES WOULD RESTRICT
TRADE.
1. TO PROTECT DOMESTIC JOBS
2. TO LEVEL THE PLAYING FIELD - to reduce
imports from countries who might have an
unfair advantage|
3. TO INCREASE GOVERNMENT REVENUE
4. NATIONAL DEFENCE - to promote defence
industries (weapons, military vehicles etc.) in
peace time, so these industries will be prepared
in the outbreak of a war. or NATIONAL
INTEREST.
5. TO PROTECT EMERGING/GROWING
INDUSTRIES
6. TO PROMOTE A COUNTRYS EXPORTS
Would you like a policy that:
-raises the price on T-shirts and
- reduces the amount and variety
available?
What are the benefits from being able to buy goods
from other countries?
More choices
Lower prices
Higher quality products
What else????
DISADVANTAGES OF
TRADE BARRIERS
In groups, you will prepare and give a lesson on one of the
disadvantage of trade barriers to the rest of the class.
Make sure you include real examples so the class understands!
PRESENTATION
LANGUAGE
-The disadvantages are
-A good example is
-This could happen because of
-A big disadvantage is
-It is caused by
-It increases/decreases
-The costs increase because of
GROUP TASK -
REVIEW
What other problems can come from
putting up barriers against other countries?

Increased Cost to Consumers
Increased Costs to Domestic Suppliers
Less Competition
Escalationism (Other countries doing the same as you)
Also: Less Variety
Less Quality
Lack of options
TO SUMMARIZE
Trade Barriers limit world trade, which means a reduction in
the total number of goods and services produced. They shift
production from more effective exporting producers to less
effective domestic producers
When production is lowered, there are fewer workers earning
income. Trade restrictions also raise prices, which is usually
their main purpose.
Trade limits in one country, moreover, usually lead to limits
being imposed in other countries. If the United States places
a high tariff on cars made in Japan, for example, Japan may
then put tariffs on American goods sold in Japan.
READING QUESTIONS
1. What does the deal between the government and the
farmers involve?
2. What does Mauricio Reina say is to blame for the falling
exports?
3. Which sectors of the Colombian economy are oriented
towards exports?
4. What other two things does Reina say have contributed
to the current situation?
READING QUESTIONS
1. A restriction on food imports from other South American
Countries, Allowing farmers to save their seeds after a
harvest, More subsidies to keeps production costs low.
2. Colombias Protectionist Policies
3. Coffee and Sugarcane
4. Conflicts and Bad Infrastructure
YOUR OPINION
Do agree that protectionist policies in Colombia only benefit
bigger companies? Why?
Can a protectionist policy
How can the Colombian agricultural sector increase
competitiveness?