Barriers to international trade:

• Tariffs are taxes imposed on imported goods
• Trade agreements such as NAFTA aim to reduce or eliminate trade barriers
• Match the barrier type with its example:

  Tariff Barrier ↔️ Tax on imported steel

  Non-Tariff Barrier ↔️ Import quotas
• Match the barrier with its example:

  Tariff ↔️ 25% tax on steel

  Quota ↔️ 50,000 tons of sugar per year

  Embargo ↔️ Trade ban with North Korea

  Regulation ↔️ Health standards for food
• Tariff barriers are taxes imposed on imported goods
• Tariff barriers make imported goods more expensive relative to domestic goods
• What is an export tariff?

  Tax on exported goods
• Match the tariff barrier with its description:

  Import Tariff ↔️ Tax on imported goods

  Export Tariff ↔️ Tax on exported goods

  Ad Valorem Tariff ↔️ Tax as a percentage of value

  Specific Tariff ↔️ Fixed tax per unit
• Embargoes represent a complete ban on trade with a specific country.


  True
• Barriers to international trade can be both physical and regulatory.

  True
• Quotas limit the quantity of goods that can be imported.


  True
• What is a quota in international trade?

  Limits on imported goods
• Non-tariff barriers directly increase the cost of imported goods

  False
• What is the impact of tariffs on competitive advantage?

  Reduces competitiveness
• What is the effect of an embargo on trade with a country?

  Complete ban on trade
• What is one regulatory obstacle created by non-tariff barriers?

  Government regulations
• One strategy to overcome tariff barriers is to shift production to countries with lower or no tariffs
• What are barriers to international trade?

  Obstacles restricting trade
• The USA currently has an embargo on trade with North Korea.


  True
• Tariff barriers directly increase the cost of imported goods.


  True
• An export tariff is a tax charged on goods leaving a country.

  True
• Match the non-tariff barrier with its description:

  Embargoes ↔️ Complete bans on trade

  Quotas ↔️ Limits on import quantities

  Regulations ↔️ Rules increasing trade costs
• What do trade agreements aim to reduce or eliminate in international trade?

  Barriers
• Tariff barriers increase the cost of imported goods through taxes and duties
• Non-tariff barriers create regulatory obstacles that hinder the flow of trade
• Strategies to overcome tariff barriers in order of increasing complexity:

  1️⃣ Negotiating Tariff Rates

  2️⃣ Utilizing Free Trade Agreements

  3️⃣ Shifting Production
• Adapting to local regulations helps businesses maintain market access
• What are quotas in international trade?

  Limits on imported goods
• What are the two main categories of barriers to international trade?

  Tariff and Non-Tariff
• Non-tariff barriers create regulatory obstacles that hinder the flow of trade
• How do tariff barriers affect the price of imported goods?

  Increase the price
• What is an import tariff?

  Tax on imported goods
• What are tariff barriers?

  Taxes on imported goods
• An ad valorem tariff is calculated as a percentage of the good's value.

  True
• Non-tariff barriers are regulatory obstacles that create challenges for international trade
• What is NAFTA, and which countries are involved?

  Trade agreement between USA, Canada, and Mexico
• Match the barrier type with its example:

  Tariffs ↔️ 25% tariff on imported steel

  Quotas ↔️ Restricting sugar imports to 50,000 tons

  Embargoes ↔️ USA prohibiting trade with North Korea

  Regulations ↔️ Meeting health standards for food imports
• An import tariff is a tax charged on goods imported into a country
• Embargoes represent a complete ban on trade with a specific country
• Embargoes are complete bans on trade with a specific country