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Understanding Trade Restrictions: Tariffs and Subsidies Explained

In this quick recap, we explore the fundamental reasons behind trade restrictions, focusing on tariffs and subsidies. Learn how these tools affect international trade and economics. We'll also provide visual aids, including free trade and tariff diagrams, to clarify these concepts. Discover the implications of tyre tariffs on trade relations with China and understand the broader impact of trade protection measures. This summary is designed for students and individuals seeking a concise overview of trade restrictions.

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Understanding Trade Restrictions: Tariffs and Subsidies Explained

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Presentation Transcript

  1. From last class (5mins) • Quick recap – why restrict from trade Reading • http://econblog.aplia.com/search?q=trade

  2. Types of protection • Tariffs • Free trade diagram • Tariff diagram

  3. Subsidies • Subsidies diagram

  4. cw • Handout – tyre tariffs provoke China

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