copy of trade barriers updated_lesson2_negatives.pdf

8/10/2019 Copy of trade barriers updated_lesson2_Negatives.pdf

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TRADE

BARRIERSCLASS 2


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QUICK REVIEW - WHAT IS THE

TRADE BARRIER?1. A tax of 15% makes jewelry from Mexico more expensive

than jewelry make in the United States.

2. Korea may export only 15,000 automobiles a year to the

United States.

3. The rungs on the ladder of any bulldozer sold in Germany

must be 12 inches apart, but US manufacturers generally make

the rungs 15 inches apart.

4. A new textile firm asks its government to provide financial

assistance to make it possible to sell its products overseas at

a lower price that will compete well in other countries.

tariff

quota

standards

subsidy


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WHAT ARE THE OTHER TYPES

OF TRADE BARRIERS?

Embargos

Licenses


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NAME 5 REASONS WHY

COUNTRIES WOULD RESTRICT

TRADE.1. TO PROTECT DOMESTIC JOBS

2. TO LEVEL THE PLAYING FIELD - to reduce

imports from countries who might have an

unfair advantage|3. TO INCREASE GOVERNMENT REVENUE

4. NATIONAL DEFENCE - to promote defence

industries (weapons, military vehicles etc.) in

peace time, so these industries will be prepared

in the outbreak of a war. or NATIONAL

INTEREST.

5. TO PROTECT EMERGING/GROWING

INDUSTRIES

6. TO PROMOTE A COUNTRYS EXPORTS


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Would you like a policy that:

-raises the price on T-shirts and

- reduces the amount and varietyavailable?


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What are the benefits from being able to buy goods

from other countries?

More choices

Lower prices

Higher quality products

What else????


8/14

DISADVANTAGES OF

TRADE BARRIERS

In groups, you will prepare and give a lesson on one of the

disadvantage of trade barriers to the rest of the class.

Make sure you include real examples so the class understands!


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PRESENTATION

LANGUAGE

-The disadvantages are

-A good example is

-This could happen because of

-A big disadvantage is

-It is caused by

-It increases/decreases

-The costs increase because of


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GROUP TASK -

REVIEW

What other problems can come from

putting up barriers against other countries?

Increased Cost to Consumers Increased Costs to Domestic Suppliers

Less Competition

Escalationism (Other countries doing the same as you)

Also: Less Variety

Less Quality

Lack of options


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TO SUMMARIZE

Trade Barriers limit world trade, which means a reduction in

the total number of goods and services produced. They shift

production from more effective exporting producers to less

effective domestic producers

When production is lowered, there are fewer workers earningincome. Trade restrictions also raise prices, which is usually

their main purpose.

Trade limits in one country, moreover, usually lead to limits

being imposed in other countries. If the United States places

a high tariff on cars made in Japan, for example, Japan may

then put tariffs on American goods sold in Japan.


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READING QUESTIONS

1. What does the deal between the government and the

farmers involve?

2. What does Mauricio Reina say is to blame for the fallingexports?

3. Which sectors of the Colombian economy are oriented

towards exports?

4. What other two things does Reina say have contributed

to the current situation?


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READING QUESTIONS

1. A restriction on food imports from other South American

Countries, Allowing farmers to save their seeds after a

harvest, More subsidies to keeps production costs low.

2. Colombias Protectionist Policies

3. Coffee and Sugarcane

4. Conflicts and Bad Infrastructure


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YOUR OPINION

Do agree that protectionist policies in Colombia only benefit

bigger companies? Why?

Can a protectionist policy

How can the Colombian agricultural sector increase

competitiveness?

copy of trade barriers updated_lesson2_negatives.pdf

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