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What is the purpose of
trade?
The whole point of trade is to get what you
want from the supplier whose products
provide the best value for money.
Cheap imports are good because they make
our incomes go further and often raise the
standards of living.
When we get the things we have to at a
reasonable price we have money left over to
spend on other things…read more

Slide 3

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International trade
International trade is the exchange of
goods and services between one country
and another
Sometimes there is a direct exchange of
goods for goods [bartering] but usually
it is an indirect exchange of items for
money and that money can then be used
to exchange for other goods…read more

Slide 4

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What is a tariff and what is a
quota
Tariff: tax placed on specific imported
goods
Quota: physical limit on specific imports
in a year…read more

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Job losses, government has
less money because it isn't
Domestic trade goes down
Cheap imports getting revenue from taxes
because of competition
from the closed domestic
companies
Foreign imports become
relatively more expensive
It does this by controlling The government tries to
[foreign companies pass on
imports through either tariffs protect the vulnerable sectors
the extra cost to consumers]
or quotas from competition abroad
so domestic consumers wont
buy them
Domestically produced goods
are relatively cheaper than
foreign products so domestic
consumers are more likely to
buy them…read more

Slide 6

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Why use a tariff?
When tariffs are levied (put up) it's
usually to protect a domestic producer
of a substitute.
If the domestic substitute is good or
better than the imported original
product will have elastic demand(when
prices rise to cover the tariff costs,
imports will fall because the substitute
is good)…read more

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