Why countries trade
Free trade equilibrium
Tariffs
Effects of a tariff
Tariff raises domestic price above world price
Who benefits from tariffs?
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Who is harmed?
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Quotas
Effects of a quota
Tariff vs. quota: the key difference
Export subsidies
Arguments for trade barriers
Critiques of these arguments
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Trade barriers and the forex market
AP Exam Tips
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Common Mistakes
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Unit 6 topics
Unit 6 overview6.1Balance of Payments Accounts6.10Economic Integration and Trade Agreements6.2Exchange Rates6.3The Foreign Exchange Market6.4Effect of Changes in Policies and Economic Conditions on the Foreign Exchange Market6.5Changes in the Foreign Exchange Market and Net Exports6.6Real Interest Rates and International Capital Flows6.7The Effect of Trade Policies6.8Fiscal and Monetary Policies in Open Economies6.9Exchange Rate Regimes