Trade Policies and Economic Concepts

The video tutorial discusses protectionism, a policy where governments make imported goods more expensive to protect domestic industries. It explains the concepts of imports and exports, detailing how goods move between countries. The tutorial covers tariffs, taxes on imported goods, and their role in trade policy. It also explores embargoes, which halt trade with specific countries, and quotas, which limit the quantity of imports. The video aims to provide a comprehensive understanding of these trade mechanisms and their implications.

What is the main goal of protectionism?

• To make domestic goods cheaper

• To increase exports

• To make imported goods more expensive

• To reduce government taxes

What is an imported good?

• A service provided within the country

• A good brought into a country from abroad

• A good exported to another country

• A good produced domestically

Which of the following is an example of an exported good?

• A car made in Japan and sold in the US

• A shirt made in China and sold in the US

• A software developed in the US and sold in Europe

• A fruit grown in Mexico and sold in the US

What is a tariff?

• A tax on imported goods

• A limit on the quantity of imports

• A subsidy for domestic producers

• A ban on foreign goods

Which of the following goods is likely to have a high tariff?

• Corn from Mexico

• Foreign cars

• Local dairy products

• Domestic electronics

What is an embargo?

• A tax on exports

• A complete stop of trade with a country

• A subsidy for local businesses

• A limit on the number of imports

Which country was mentioned as having an embargo placed on it by the US?

• Mexico

• Cuba

• Canada

• China

What is a quota?

• A tax on imported goods

• A complete ban on trade

• A limit on the number of goods imported

• A subsidy for exports

How does a quota affect imports?

• It limits the quantity allowed

• It makes them cheaper

• It bans them completely

• It increases their quality

Which method is most commonly used by the US to protect domestic industries?

• Embargoes

• Quotas

• Tariffs

• Subsidies