• Let’s look at TRADE!!!!!!

• Why do we trade?

Is trade good or bad ?

Clothing Exports

Clothing Imports

• So who benefits from trade?

• Who gets hurt by trade?

• Do we care if people are hurt?

• What are we supposed to do about it?

TRADE BARRIERS

Tariff• Tax on imports

Quota

• Value based or physical limit on how much can be imported

• Illegal goods have a zero import quota

• In the US in 1996, milk, cream, brooms, ethyl alcohol, anchovies, tuna, olives and durum wheat were subject to tariff-rate quotas. Other quotas exist on peanuts, cotton, sugar and syrup.

Embargo

• Ban on all or nearly all trade

• Used to influence political actions

Standard

• Regulations on testing, quality, classification, labeling of imported goods and services

Subsidy• Financial

assistance to a company or industry by the government

• Used to help keep them competitive