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Trade Barriers

Trade Barriers. Revenue Tariff. An excise tax placed on goods not made in the domestic market Used to raise $$$ for the government EX in the US: Bananas, Coffee. Protective Tariff. An excise tax on foreign goods also made in the domestic market

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Trade Barriers

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  1. Trade Barriers

  2. Revenue Tariff • An excise tax placed on goods not made in the domestic market • Used to raise $$$ for the government • EX in the US: Bananas, Coffee

  3. Protective Tariff • An excise tax on foreign goods also made in the domestic market • Protects the good from cheaper foreign prices by making the competition more expensive • Also makes revenue for the gov’t

  4. Production without a tariff

  5. Production with a tariff

  6. Quota • A legal limit on how many of a good can be imported into a country

  7. Production with a Quota

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