Trade Barriers
Are trade barriers good for our economy? yes or no. List one reason why?
no.
-lack of economic efficiency
-lack of choice for consumers
-limit their ability to export products
-more economic harm than benefit
-they raise prices and reduce availability of goods and services (lower income because of this)
-lower economic output
What is Globalization
The process by which businesses or other organizations develop international influence or start operating on an international scale.
The loss or potential gain from other alternatives when one alternative is chosen
What is oppurtunity cost?
What is a trade barrier?
A trade Barrier is a government induced restriction on international trade
How does Globalization benefit poor countries and how does it negatively affect poor countries.
Rich Countries invest in building factories in poor countries so they can produce goods and ship them back to rich countries.
Rich countries trade very little with poor countries.
The ability of an economy to produce a particular good or service at a lower opportunist cost than its trading partners
What is Comparative Advantage?
Why are there Trade Barriers
To protect the industry. It would be nice to have free trade because it would Decrease prices but it would in Turn create a risk for the company.
What are the two main issues that the author talked about?
Trade of Goods and Services
Foreign direct investment
Comparative advantage is beneficial to this?
What is free trade?
What example did we see in the video about Australia?
Australian regulations only allowed cooked chicken into the country
What is an example of Globalization that was mentioned?
Cars, Covid, or Silk road.
Countries that had controversies because of comparative trade
Who are the US and China?
What are two pros of Trade Barriers?
-better balance of trade
-protection of emerging domestic industries
- job opportunities
- generate government revenue
How is foreign direct investment unlike investments in shares, currency, or bonds.
They can not be quickly reversed in a panic.
Main example of comparative advantage
What is international trade?