International Trade Key Terms Define the following International

International Trade: Key Terms Define the following: International Trade. Goods. Import. Export. Tariff. N. A. F. T. A. G. A. T. T. -

International Trade: Key Terms • International Trade • Goods • Import • Export • Tariff • N. A. F. T. A. • G. A. T. T. - • trade between 2 or more countries • Products: things you make, harvest, mine, or grow for $ • goods being brought into a country • goods being shipped out of a country • a tax on foreign imported goods • (North American Free Trade Agreement) No tariffs between U. S. , Mexico, & Canada • (General Agreement on Tariffs & Trade) World version of NAFTA. Not in effect.

Pros & Cons of Tariffs A tariff places a tax on foreign imported goods brought into the U. S. making them more expensive Tariffs help American manufacturers and workers by protecting them from foreign competition Also, raise $ for the government. Tariffs hurt American consumers who now have to pay more for the products that they wish to purchase. Can cause trade & business to slow down due to an increase in prices.

An example of how a tariff works • Japan’s Toyota Camry costs $25, 000 • U. S. ’s Ford Taurus costs $27, 000 • Which car are you buying? • Add a tariff of $5, 000 to the Toyota. • Which car are you buying now? • What could Ford do with the price of the Taurus if there was a tariff on the Camry?

Explain if President Obama should consider using tariffs on other countries’ products as a way to get Americans to buy American products and help create American jobs?