Trading

By: Alomaur Day

 Standard

The student will explain how voluntary trade benefits

buyers and sellers in Southwest Asia (Middle East).
a. Explain how specialization encourages trade between
countries.
b. Compare and contrast different types of trade barriers,
such as tariffs, quotas, and embargos.
c. Explain the primary function of the Organization of
Petroleum Exporting Countries (OPEC).
d. Explain why international trade requires a system for
exchanging currencies between nations
 How specialization encourages
trade between countries.
● Here in the United States, we do not have oil, so we
have to borrow it from other countries(, just for an
example).
● The middle east is known mainly for petroleum. In
some countries, they do not have oil so they depend
and trade with other countries.
● When countries do not have certain things, they trade
or buy them.
 Differences between tariffs,
quotas, and embargos
A tariff (from Arabic: ‫تعرفة‬, translit. tʿariffa: "fee to be paid") is a
duty imposed on goods when they are moved across a political
boundary.
The tariff is associated with protectionism; the economic policy of
restraining trade between nations.
A tariff is used for building an important nation. Tariffs can
occasionally emerge as a political issue prior to an election )(
www.wikipedia.org/wiki/Tariffs).
A quota is a type of protectionist trade restriction that sets the
limit on the quantity of goods that can be imported into a country
at periods of time. An import quota works by reducing the amount of
foreign goods a country may import. In a competitive market, the
equilibrium point which determines the price and quantity produced of a
good is where the demand curve and the domestic supply curve
intersect.
An embargo is the prohibition of trade with a certain country, to isolate it
and to put its government into a difficult internal situation.
 What is O.P.E.C.
● O.P.E.C. Is a peace keeping
government that handles the
distribution, and price of oil.
● It started somewhere around the
1960s.
● Its headquarters are in Vienna,
and was there since 1965.
● The following countries have a
membership: Algeria, Angola,
Ecuador, Iran, Iraq, Kuwait, Libya,
Nigeria, Qatar, Saudi Arabia, the
United Arab Emirates, and Venezuela.
 Why international trade needs a system for
exchanging currencies between nations.

● They need to have

systems for...:
knowing what people
are importing and
exporting. It also
might get to crowded
or empty in the ports.
It will be more fluent
and smooth if they
had a system.
 Thank You!
● Project by: Alomaur Day

Sources:
● www.wikipedia.org/wiki/Tariff
● www.wikipedia.org/wiki/Import_quotas
● www.wikipedia.org/wiki/Embargo
Pictures:
● www.bing.com
● www.wikipedia.org/wiki/Tariff