U8: Trade Barriers (Pg 61)

Question 0

Trade Barriers (Pg 61)
Types of trade barriers that the government could adopt:

Answer 0

1. Tariffs
2. Subsidies
3. Quota
4. Embargo
5. Nationalistic Campaign

Question 1

Trade Barriers (Pg 61)
Governments of importing countries operate trade barriers for the following reasons: (Domestic Producers)

(especially those that are new and/or strategic in nature)

Answer 1

1. Protect their own industries.

2. For Social/health reasons.

Question 2

Trade Barriers (Pg 61)
Types of trade barriers that the government could adopt: 
1. Tariffs

Answer 2

A tariff is a tax imposed on an imported goods, which then raises the price to the consumer and hence lowers the demand for the imported goods. 
#Tax imposed on an imported goods, it will rise the price and reduce demand the imported goods.
For example, the Singapore Government imposes high tariffs on cigarettes coming into the country.

Question 2

Trade Barriers (Pg 61)
Types of trade barriers that the government could adopt: 
2. Subsidies

Answer 2

A government can subside its domestic producers, hence making the final price of the goods are price-competitive against foreign competition.

For example, the Korean Government uses this trade policy to benefit its shipbuilding industry.

Question 3

Trade Barriers (Pg 61-62half)
Types of trade barriers that the government could adopt: 
3. Quota

Answer 3

A quota is a physical limit on the amount of goods that can be imported. The imported goods will become more expensive and hence dampens the demand for them.

For example, a country can limit the number of imported cars into the domestic market each year to protect its local car manufacturing industry from competition.

Question 3

Trade Barriers (Pg 62)
Types of trade barriers that the government could adopt:
4. Embargo [Bans]

Answer 3

An embargo occurs when the Government places a total ban on the import of a particular good as the product could be harmful or dangerous.

For example, many countries completely banned the imports of beef from European countries during the mad-cow disease incident in Britain.

Question 4

Trade Barriers (Pg 62)
Types of trade barriers that the government could adopt:
5. Nationalistic Campaign

Answer 4

Nationalistic campaigns occur when a local government launches campaigns to encourage people to buy domestic goods instead of foreign ones.

For example, there was a “Buy British” campaign in the early 70’s.

Question 4

Trade Barriers (Pg 61)
Types of trade barriers that the government could adopt: 
2. Subsidies

Answer 4

A government can subside its domestic producers, hence making the final price of the goods are price-competitive against foreign competition.

For example, the Korean Government uses this trade policy to benefit its shipbuilding industry.

Question 5

Trade Barriers (Pg 61)
Types of trade barriers that the government could adopt: 
3. Quota

Answer 5

A quota is a physical limit on the amount of goods that can be imported. The imported goods will become more expensive and hence dampens the demand for them.

For example, a country can limit the number of imported cars into the domestic market each year to protect its local car manufacturing industry from competition.

Question 5

Trade Barriers (Pg 61)
Types of trade barriers that the government could adopt: 
3. Quota

Answer 5

A quota is a physical limit on the amount of goods that can be imported. The imported goods will become more expensive and hence dampens the demand for them.

For example, a country can limit the number of imported cars into the domestic market each year to protect its local car manufacturing industry from competition.

Question 6

Trade Barriers (Pg 61)
Types of trade barriers that the government could adopt:
4. Embargo [Bans]

Answer 6

An embargo occurs when the Government places a total ban on the import of a particular good.

For example, many countries completely banned the imports of beef from European countries during the mad-cow disease incident in Britain.

Question 6

Trade Barriers (Pg 61)
Types of trade barriers that the government could adopt:
4. Embargo [Bans]

Answer 6

An embargo occurs when the Government places a total ban on the import of a particular good.

For example, many countries completely banned the imports of beef from European countries during the mad-cow disease incident in Britain.

Question 7

Trade Barriers (Pg 61)
Types of trade barriers that the government could adopt:
5. Nationalistic Campaign

Answer 7

Nationalistic campaigns occur when a local government launches campaigns to encourage people to buy domestic goods instead of foreign ones.

For example, there was a “Buy British” campaign in the early 70’s.

Question 7

Trade Barriers (Pg 61)
Types of trade barriers that the government could adopt:
5. Nationalistic Campaign

Answer 7

Nationalistic campaigns occur when a local government launches campaigns to encourage people to buy domestic goods instead of foreign ones.

For example, there was a “Buy British” campaign in the early 70’s.