IE - Trade Barriers Lesson
Trade Barriers
A trade barrier is a means of preventing a foreign product or service from freely entering a nation’s territory. Some examples of trade barriers are tariffs, quotas, and embargoes.
Examples of Trade Barriers
Tariff: White House Unveils Tariffs on 1300 Chinese Products
Quota: The U.S. limits the annual amount of raw cotton coming into the country from other nations.
Embargo: Countries currently sanctioned by the U.S. include Cuba, Iran, North Korea, Sudan, and Syria.
| Trade Barrier Costs | Trade Barrier Benefits |
|---|---|
| Increases prices for foreign goods | Protect domestic industries and jobs |
| Can harm an economy, making it inefficient and unresponsive to long-term economic changes | Protects country from potential harmful foreign products |
| Can result in a trade war | Prevent unfair competition |
| Reduce competition | Safeguards national security |
We consider trade without barriers to be free trade. Protectionists argue for trade barriers and against free trade. Which side do you think has the stronger arguments?
Free Trade vs. Trade Barriers Practice
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