Transcript 10/30 Brain Jogger - Bibb County Schools

Brain Jogger
• (You don’t need to write this) Find
where two pieces of your
clothing/accessories are made. You
will find the information on the label.
Put the two countries in your brain
jogger.
(Ask a friend close by to check your tag)
Chances are some of the items
on your list are imported from
other countries. Everyone is
affected by international
trade!!!
International Trade
1. How do you benefit from being able to buy
goods made in other countries?
2. Would you favor a law that would raise the
price on T-shirts and to keep your friends
job?
• Countries establish rules to restrict trade in
order to protect their own industries or new
industries, to protect jobs, and to gain
income for the government. For example, in
the 1970s, unions and U.S. automobile
manufacturers supported quotas on less
expensive imported cars to help keep their
own products competitive.
Trade Barriers…
• Mountains, Deserts, War Zones
But that’s not all…………………………….
Definitions:
• Tariff: A tax on imported goods.
• Quotas: A limit on the quantity of imports.
• Embargo: Stop trade with a certain country.
Examples in Europe
• Tariff: Countries outside of the EU must pay a
tax to sell goods inside the EU
• Quota: The EU places a quota on the amount
of steel that can be imported.
• Embargo: During the Cold War, the U.S. placed
an embargo on the Soviet Union
Cases
Match the scenario with the economic action.
• 1. A tax of 15% makes jewelry from Mexico
more expensive than jewelry made in the
United States. Tariff
• 2. Syria attacks Israel for no reason, and the
United States stops trade with Syria Embargo
• 3 Korea may export only 15,000 automobiles a
year to the United States. Quota
• The German Potato Growers Association is concerned about
increased competition from imported potatoes that are larger
than those grown within Germany’s borders. The Association
wants to lobby for a trade barrier.
• Some members think a tariff or quota would be most
beneficial. Others disagree and suggest an embargo would be
best.
• The president of the association must send a letter to the
membership explaining which trade barrier (tariff, quota, or
embargo) he thinks would help the German growers achieve
their goal to reduce competition from imported potatoes. He
wants your advice.
• Which trade barrier would you recommend?
• Give me an imaginary example
of an embargo, tariff, and a
quota. (3 examples total)
• Please give me real countries
with real products.