Economics: Trade Barriers

Economic deals with the sales of goods and services.

This means that Economics deals with a lot of trade.

People exchanging one thing for another.

A trade barrier is the restriction or regulation of this exchange of goods and services between countries.

Tariff, Quota, and Embargo

Example: If I were to sell oranges in Canada, they may add a tariff on the oranges that I sell. So Canada they may add a $1 tax on each orange I sell there. This would make my oranges more expensive.

Example: Canada may limit the number of oranges I am allowed to sell there. They may do this to make sure that oranges sold buy Canadians will be bought too, not just mine.

Example: Canada could put an embargo on the United States which means I could no longer sell my oranges there.

Countries put embargoes on other countries if they don't like things they are doing or something that they believe.

Example: Canada could put an embargo on the United States which means I could no longer sell my oranges there.

Countries put embargoes on other countries if they don't like things they are doing or something that they believe.

This doesn't mean you are getting things for free, it means that there are no limits or restrictions on trades being made.