Overview
Trade policies play a crucial role in shaping the economic landscape of countries. They can protect local industries through tariffs and quotas, but they also have the potential to raise prices for consumers and limit choices. Understanding these policies is essential for grasping how global trade f...
Key Terms
Example: A 10% tariff on steel imports increases the cost of foreign steel.
Example: A country may set a quota of 1,000 cars from a specific country.
Example: NAFTA is a trade agreement between the U.S., Canada, and Mexico.
Example: Imposing tariffs to protect domestic farmers from foreign competition.
Example: Countries in the European Union enjoy free trade among themselves.
Example: A government may subsidize solar panel manufacturers to promote renewable energy.