Presentation Transcript

1. Read to Learn Describe free trade. Indicate who benefits and who does not benefit from free trade.
2. The Main Idea Protectionism is the practice of putting limits on foreign trade to protect businesses at home. However, protectionism decreases competition and generally increases the prices that consumers pay for goods and services. More nations are moving toward free trade.
3. Key Concept Protectionism and Free Trade
4. Key Term the practice of the government putting limits on foreign trade to protect businesses at home protectionism a tax placed on imports to increase their price in the domestic market tariff
5. Key Term a limit placed on the quantities of a product that can be imported quota a ban on the import or export of a product embargo
6. Key Term freetrade when there are few or no limits on trade between countries
7. Protectionism and Free Trade Global competition often leads to trade disputes. Protectionism and free trade are two opposing points of view involved in trade disputes.
8. Protectionism Japan practices protectionism in the areas of rice farming and auto production. protectionism the practice of the government putting limits on foreign trade to protect businesses at home
9. Protectionism
10. Protectionism
11. Protectionism A tariff is an example of a trade barrier. tariff a tax placed on imports to increase their price in the domestic market
12. Trade Sanctions A government can impose a trade sanction, or penalty, on other countries, usually by adding tariffs.
13. Protectionism A quota is another example of a trade barrier. quota a limit placed on the quantities of a product that can be imported
14. Protectionism An embargo is a trade barrier that is usually used for political or military reasons. embargo a ban on the import or export of a product
15. Free Trade Supporters of free trade think all countries should be free to compete anywhere in the world without restrictions. free trade when there are few or no limits on trade between countries
16. Free Trade
17. Free Trade
18. Free Trade To reduce limits on trade, nations form trade alliances. NAFTA (North American Free Trade Agreement) combined the economies of the United States, Canada, and Mexico.
19. Free Trade Some people opposed NAFTA because they feared some workers would be displaced when trade barriers were lowered.
20. Graphic Organizer North AmericanFree Trade Agreement(NAFTA) Association of Southeast Asian Nations (ASEAN) European Union(EU) United States, Canada, Mexico Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, United Kingdom Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam
21. Give three reasons for protectionism. protects businesses from unfair competition, from countries that violate U.S. human rights or environmental standards, and from overdependence on another country’s products
22. Give three reasons for free trade. encourages competition, gives consumers more choices for products, promotes cultural understanding
23. What are some of the major trade alliances in the world today? NAFTA, the EU, and ASEAN
24. End of