Overview
International trade is a vital component of the global economy, allowing countries to exchange goods and services. However, it is not without challenges, particularly at the domestic level. Trade barriers, such as tariffs and quotas, can protect local industries but may also lead to higher prices fo...
Key Terms
Example: The government raised tariffs on steel imports.
Example: The country set a quota on sugar imports.
Example: Country A has a comparative advantage in producing wine.
Example: NAFTA is a trade agreement between the U.S., Canada, and Mexico.
Example: Protectionism can lead to trade wars.
Example: Free trade agreements aim to eliminate tariffs.