Standards or Regulations

1. Country prohibits product that does not meet specific standards—often health, safety, or environmental—set by government • Marine Mammal Protect Act (MMPA) • Tuna Fish Standards or Regulations

2. Note Reward Day 12/1/2010

3. 1981 Recession • Auto companies struggling (half mil unemployed) • U.S. consumers buying large amount of Japan imports • Japan limits imports via ”Voluntary Export Restraint” • 1.68 mil - 1983 • 1.85 mil – 1984 • 2.3 mil – 1985 • Program ended in 1994 • Causes price of Japanese cars to go rise $1,200 BARRIER #1

4. What type of barrier is this (tariff, quota, embargo, regulation, or subsidy)? • How does action described limit trade? • Why was the action taken? What was the government(s) trying to achieve? • Who benefited from this action • Who suffered losses? Questions to Answer

5. 20 percent of catfish market of U.S. imported from Vietnam • Half million Vietnamese living of industry • Hurting people in Mississippi • Want all catfish sold to have marked package of country of origin • Vietnam regulation was not as strict as U.S. • Processed for cheaper, sold for cheaper • Law passed in 2000 that only the “Ictaluridae Catfish” could be labeled as catfish in grocery stores Barrier #2

6. What type of barrier is this (tariff, quota, embargo, regulation, or subsidy)? • How does action described limit trade? • Why was the action taken? What was the government(s) trying to achieve? • Who benefited from this action? • Who suffered losses? Questions to Answer

7. Cuban Sugar Crisis? • 1959 Cuba becomes friends with Soviet Union and communist • U.S. at time was importing lots of Sugar and had many Oil refineries in Cuba • 1960 – all trade with Cuba (to and from) is prohibited • 1962 – JFK all travel and financial communication with Cuba is illegal • Idea is make Cubans life difficult and have them raise against leader Barrier #3

8. What type of barrier is this (tariff, quota, embargo, regulation, or subsidy)? • How does action described limit trade? • Why was the action taken? What was the government(s) trying to achieve? • Who benefited from this action? • Who suffered losses? Questions to Answer

9. Farmers in 1920’s • U.S. struggling from overproduction of food supplies • South America and Asia • Decline in agriculture goods prices • Smooth-Hawley Act • Raised taxes on imported food by 60% • Caused 60 other countries to raise taxes on American imported goods • Played a role in lengthening and arguabley starting the Great Depression Barrier #4

10. What type of barrier is this (tariff, quota, embargo, regulation, or subsidy)? • How does action described limit trade? • Why was the action taken? What was the government(s) trying to achieve? • Who benefited from this action? • Who suffered losses? Questions to Answer

11. 1776 90% of Americans worked on Farms • Currently at or below 2% • 1985 was at 12% • Export Enhancement Program • Government pays farmers additional $ for wheat exports • Allows for sale of wheat to other countries for cheaper Barrier #5

12. What type of barrier is this (tariff, quota, embargo, regulation, or subsidy)? • How does action described limit trade? • Why was the action taken? What was the government(s) trying to achieve? • Who benefited from this action? • Who suffered losses? Questions to Answer

13. Go online and find an article that discusses a country currently (or recently) using a type of trade barrier and answer the following questions? • What country used the barrier? Who was it used against? • What type of barrier was it? • Was it affective? • Why was it implemented? • Who gained? Who suffered? Today’s Work