handout Physical Trade Barriers

Political Trade Barriers
In your own words, define free trade.
Think of three reasons why a country might NOT want to allow FREE TRADE.
Examine the clothes you are wearing and determine where these items were produced.
Most have a “Made in __________” tag.
How do you benefit from being able to buy goods made in other countries?
Would you approve of a policy that would raise the price of shirts and reduce the
amount available? Explain.
This is what a trade barrier does. Even though free trade can help both nations,
many barriers to trade exist today.
Define in your own words:
tariff –
quota –
embargo –
Generally, why do countries use trade barriers?
Why are tariffs used in agriculture?
How do tariffs help domestic industries?
How do tariffs hurt consumers?
How might reducing competition affect a country?