How would your life be different if all international trade was

banned?

Intro to our……. “Essential

Question(s)”

How does specialization enhance Australia’s ability to trade with other countries?

How do trade barriers (tariffs, quotas, and embargoes) hinder voluntary trade from

occurring between countries?

Specialization- When a country focuses on producing what they can produce and sell most

easily.

Hey Australia! What is your Specialty???????Australia specializes in the production and export of: Coal, Iron Ore, Wool, Wheat, & Mineral Resources

SPECIALIZATION:______________________________________________________________________________________

3 Ways “specialization” benefits (helps) Australia and/or encourages worldwide trading:

_____________________________________________

_____________________________________________

_____________________________________________

When a country produces the few things that it can

produce & sell most easily.

Specializes & makes products from its own natural resources

Exports its products & makes money

Imports products it can’t make itself & other countries make money

****EVERYBODY WINS****

Human-Made Trade Barriers

Tariff – a Tax on Imported Goods (makes them more expensive & makes it less likely consumers will buy)

Quota- A Limit on the amount of goods that can be imported from another country.

Embargo- A total Ban on trade with a country – Usually motivated by politics to hurt another country economically.

Human-Made Trade Barrier

What is it? Why is it done?

TARIFF

QUOTA

EMBARGO

Tax on imported goods

To raise the prices of imported foreign goods, so

people choose to buy cheaper goods made

domestically

Limit on the amount of

imported goods

To raise the prices of imported foreign goods, so

people choose to buy cheaper goods made

domestically

Total ban on imported goods from a country

To punish a country

economically

Australian Economic DataSource: CIA World Fact Book

ExportsExports:World Rank: Export Partners:

Major Exports:

ImportsImports: World Rank: Import Partners:

Major Imports:

$210.7 Billion est.2010

21China 21.81%, Japan 19.19%, South Korea 7.88%, India 7.51%, US 4.95%, UK 4.37%, NZ 4.1%

coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport equipment

$200.4 Billion est.2010

21China 17.94%, US 11.26%, Japan 8.36%, Thailand 5.81%, Singapore 5.54%, Germany 5.3%

machinery and transport equipment, computers and office machines, telecommunication equipment and parts; crude oil and petroleum products

Return to our……. “Essential

Question(s)”

How does specialization enhance Australia’s ability to trade with other countries?

How do trade barriers (tariffs, quotas, and embargoes) hinder voluntary trade from

occurring between countries?