1. ●
Trade
Trade occurs when nations choose
to exchange goods. Nations choose
to engage in trade because it is
impossible or inefficient to produce
what they need.
Specialization= is
when country can
produce a good
cheaper, better, or
more efficiently than
others.
Can you think of some
examples of countries or
regions that “specialize”
in a particular good or
service?

2. Imports & Exports
●
●
Exports are goods
that nation produces
and sells to other
countries. (makes
money)
Imports are goods
that a country buys
from other nations
(takes money)
Why do you think it is
important to have a balance
a “good” balance of imports
and exports?

3. Trade Barriers
●
Trade Barriers are obstacles that make trade more difficult.
Trade barriers can be natural or human-produced.
Natural Trade Barriers
●
Deserts, rainforests, mountains, regions without rivers or
oceans.
Political Barriers
●
Policies or laws passed by a government to regulate trade.
Intended to make their economy stronger.
–
Tariffs
–
Quotas
–
Sanctions & Embargoes

4. Tariffs
●
●
●
Tariffs are taxes on
imported goods.
Tariffs raise prices on
foreign goods.
Therefore, if a country
wants to sell their goods in
a country that imposes a
tariff they will be charged a
tax on that imported
product.
Why would a country
intentionally raise the
prices of foreign goods
and products?

5. Quotas
●
●
Do you think quotas
are a good idea?
Quotas are limitations on
the number of products
that can be imported.
The goal of quotas is to
make domestic products
more competitive with
foreign products.
How would this occur?

6. Embargoes & Sanctions
●
●
●
Sanctions are policies that
restrict a country's trade
with another country.
Embargoes is a refusal to
trade with a certain country
at all.
These barriers are often
unrelated to economics,
but rather political
disagreements.
North Korea sanctions video
Cuba embargo video