U1 Barriers to International Trade

Question 1

Tariffs

Answer 1

taxes on imported goods for the purpose of raising their selling price

Question 2

Non-tariff barriers: Quotas

Answer 2

• numerical limits placed on imported goods
• Once a limit has been reached
  importing is stopped or a tariff is imposed

Question 3

non-tariff: subsidies

Answer 3

payments to domestic producers which allow them to sell at a price lower than or equal to the imported competition

Question 4

Government Standards: Environmental Restrictions

Answer 4

goods could be restricted if they are deemed
harmful to the domestic environment

Question 5

canadian Standards: Safety Regulations

Answer 5

foreign goods must conform to Canadian standards to protect Canadians

Question 6

Currency Fluctuations

Answer 6

the exchange rate of the Canadian dollar vs. foreign
currencies affects the price of imported/exported products

Question 7

Trade Sanctions

Answer 7

the banning of imports from a country for the purpose of achieving foreign policy goals

Question 8

6 reasons Why Trade Barriers Exist

Answer 8

Protects…
1. domestic jobs
2. domestic “infant” industries
3. vital industries
4. cultural identity

5. give “fair” competition
6. retaliation against trade barriers imposed by a foreign government against a domestic exporter.