unit 3 of africa - mr. johnsons 7th grade ss class at ….pptVIP

Trade barriers are anything that slows down or prevents one country from exchanging goods with another Some trade barriers are put in place to protect local industries from lower priced goods made in other countries Other times trade barriers are created due to political problems between countries Trade is stopped until the political issues are settled A tariff is a tax placed on goods when they are brought into (imported) from one country to another country The purpose of a tariff is usually to make the imported item more expensive than a similar item made locally This sort of a tariff is called a protective tariff because it protect local manufacturers from competition coming from cheaper goods made in other countries A quota is a different way of limiting the amount of foreign goods that can come into a country A quota sets s specific amount or number of a particular product that can be imported or acquired in a given period of time A third type of trade barrier is called an embargo An embargo is when one country announces that it will no longer trade with another country in order to isolate the country and cause problems with that country’s economy Embargoes usually come about when two countries are having political disputes One example of an embargo involves South Africa and apartheid. Many countries in the UN thought apartheid was wrong They decided to stop selling weapons to South Africa. The embargo lasted many years. More products and money were kept from South Africa. In the 1990s, South Africa officially dropped its apartheid system and the nations of the world began trading with South Africa again. Every country has a different kind of currency, or monetary system. Some examples of African money are the Egyptian pound, the South African rand, the Nigerian naira, and Chad’s franc. An exchange rate is the price that one country’s currency has compared to another country’s currency. For example, one US dollar is worth over one hundred Nigerian naira. Witho