It’s Time to Trade
SS6E6 The student will analyze the benefits of and barriers to
voluntary trade in Europe
a.
Compare and contrast different types of trade barriers such
as tariffs, quotas, and embargoes
b. Explain why international trade requires a system for
exchanging currencies between nations
Class work Assignment
Take out a piece of notebook paper and
draw a tree map with three branches.
Label your map – Trade Barriers
Label each branch –
Tariff
Quota
Embargo
Tariffs
Taxes placed on imported goods
Make imported products cost more
Increases the demand for a lowerpriced item produced domestically
Example: America may charge a tariff on imported cheese to make it more
expensive. This would make Americans buy the cheaper, American-made
cheese. In the end, by enforcing a tariff, America helps support its farmers and
makes more money
Quotas
Put a legal limit on how much of a
product can be imported
Can cause shortages
Causes prices to rise
Example: America may put a quota on how many BMW automobiles can be
imported form Germany. This would make the price of BMW cars rise. It would
also encourage Americans to buy cheaper, American-made cars. America
benefits by selling more locally made cars and Germany benefits by selling more
expensive BMWs.
Embargoes
When trade is not allowed between two
countries
No goods can be sold or bought
between two countries
Like putting the countries in “Time Out”
Example: America as a trade embargo with Cuba. America cannot buy or sell
anything from Cuba and Cuba cannot buy or sell anything from America. It is
illegal to buy Cuban cigars in America, for example, because they are an import
from Cuba
How does the European Union encourage
voluntary trade among its members?
The EU was established to set up free
trade among countries of Europe
Accounts for 1/5 of the world’s trade
Products produced in Europe are traded
in Europe without tariffs
This free trade leads to tremendous
savings for European consumers &
businesses
How does the European Union encourage
voluntary trade among its members?
In order to protect its members, the EU sets
quotas on trade with other nations
The EU will also embargo imports from
foreign countries if that country doesn’t follow
quota rules
Embargoes are also use for safety reasons
The EU may also embargo imports from
countries for political reasons
Quick Quiz
Decide if the examples below represent
a tariff, quota, or embargo
___ 1. Only 3,000 pairs of American
blue jeans can enter France
___ 2. The U.S. charges an extra 10
cents per pound on bananas from Costa
Rica
___ 3. No Brazilian beef can be sold to Spain.
___ 4. Only 10,000 barrel of oil can be
delivered from Saudi Arabia to Italy this
month.
___ 5. The EU will not accept any products
from an African nation because its
government will not allow free speech or
freedom of religion
You are going to create a
product
It can be anything…
Name your product and
draw a colorful picture of
it
Questions about your Product
1. Would you want to sell this product in
other countries? Why?
2. Why wouldn’t you want quotas when
selling this product?
3. Why wouldn’t you want tariffs when
selling this product?
4. Why wouldn’t you want an embargo
when selling this product?
5. Why might you want embargoes when
selling this product?
Your Money = My Money
Working within your group, use CIA
Factbook and complete the chart
As a group, complete the questions on
the back of the chart. Be prepared to
share your answers
Credits
Georgia Experience, 6th Grade Teacher’s
Edition
Thinking Maps – Tree Map
GeorgiaStandards.org, 6th grade
Framework Unit 3