Trade Barriers and Their Impacts

The video tutorial introduces the concept of trade barriers, which are obstacles that hinder or slow down trade. It covers two main types: geographic and economic trade barriers. Geographic barriers include physical features like mountains and oceans. Economic barriers are further divided into tariffs, embargos, and quotas. Tariffs are taxes that make foreign products more expensive, embargos completely stop trade between countries, and quotas limit the amount of foreign products allowed into a country. The video explains how these barriers affect trade and the reasons behind their implementation.

What is a trade barrier?

• A wall that facilitates trade

• A tool to promote international relations

• A method to enhance trade

• An obstacle that slows or stops trade

Which of the following is an example of a geographic trade barrier?

• A quota

• A mountain range

• An embargo

• A tariff

How can geographic trade barriers be overcome in modern times?

• By implementing quotas

• By using airplanes

• By establishing embargos

• By increasing tariffs

What is the primary purpose of a tariff?

• To encourage foreign trade

• To completely stop trade

• To limit the quantity of imports

• To make trade more expensive

Why might a government impose a tariff?

• To make foreign products cheaper

• To encourage citizens to buy domestic products

• To increase the quantity of imports

• To stop all trade with a country

What does an embargo do?

• It limits the amount of trade

• It encourages trade between countries

• It makes trade more expensive

• It completely stops trade

Which of the following is a reason for a country to impose an embargo?

• To reduce the cost of imports

• To protect citizens from unsafe products

• To increase trade with another country

• To encourage foreign investment

What is a quota in terms of trade barriers?

• A method to increase exports

• A tax on imports

• A complete stop to trade

• A limit on the quantity of imports

How does a quota affect trade?

• It limits the amount of goods that can be imported

• It makes trade more expensive

• It encourages more imports

• It stops all trade

Why might a government use a quota?

• To stop all imports

• To make foreign products cheaper

• To encourage citizens to buy domestic products

• To increase the number of imports