Political Trade Barriers In your own words, define free trade. Think of three reasons why a country might NOT want to allow FREE TRADE. 1) 2) 3) 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?