Trade Barriers (Definitions or Explanations)

Question 1

Trade Barriers (Definitions or Explanations):

Tariffs

Answer 1

Tariffs raise the cost of imports so that locally manufactured products are less expensive and more appealing to consumers.

Question 1

Trade Barriers (Definitions or Explanations):

Trade Quotas

Answer 1

A trade quota is a government-imposed limit on the quantity or value of a specific good that can be imported or exported within a certain period. Quotas are used to regulate trade, protect domestic industries, or control supply and demand.

Question 2

Trade Barriers (Definitions or Explanations):

Trade Embargoes

Answer 2

a government-imposed ban on trade of a specific product or with a specific country.

Question 3

Trade Barriers (Definitions or Explanations):

Investment Canada Act

Answer 3

The Investment Canada Act (ICA) is a federal law that regulates foreign investments in Canada to ensure they provide a net benefit to the country. It requires foreign investors to notify or seek approval for certain acquisitions of Canadian businesses, particularly if the investment surpasses a set financial threshold. The act also allows the government to review transactions that may affect national security, ensuring that foreign ownership does not harm Canada’s economy, industries, or sovereignty.

Question 4

Trade Barriers (Definitions or Explanations):

Standards (3 Ways They Can Vary)

Answer 4

• Environmental protection: push for fuel efficiency and low emissions.
• Voltage in electronics: products must be physically modified for other markets (e.g., to fit in outlets around the world)
• Health and safety: Canada looks for imports manufactured using certain standards (e.g., no sweatshops, paint not produced using lead,etc.)