There are trade barriers that control trade between 2 countries.We will be going over 3 terms:A TariffAn EmbargoA quota
TRADE RESTRICTIONSThere are 3 types of trade restrictions that can be used to regulate a Trade between countries.A TARIFFAN EMBARGOA QUOTAWe are going to be learning about what each of them do.
-QUOTAA Quota is a limit on how many goods a country can import or export.An example of this would be:"The country may be exceeding its OPEC quota of 1,100,000 barrels of oil per week"Quotas are usually used to regulate the trade between to countries.
-TARIFFA Tariff is a tax on goods imported from other countries.Lets say Russia and Germany were trading. Russia is giving Germany Oil, while receiving metal from Germany.Imposing a tariff on these two countries would mean that Germany will have to pay more for the oil, and Russia will have to pay more for the metal.Putting a tariff on imported goods decreases the amount of imported goods a country can get.
-EMBARGOAn Embargo is a complete ban of the trade between countries.This type of trade restriction completely prohibits trading between countries.Imposing an Embargo between countries would stop the trading of products, or all trade between them.An example of this would be when the United States imposed an Embargo between them and Cuba.This might be helpful when you wanna stop trading with a country for a period of time