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Economics Pre.

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Submitted By Agurami
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Slide 5
Due to depreciation, the exchange rate from Dollar to Euro would have dropped, making it cheaper to buy euros. For that reason all French imports would increase, including wine. The same follows for a vacation to Paris, you could purchase Euros cheaply and enjoy a relatively affordable vacation.
Slide 6
Protective tariffs are taxes on certain imported goods, a measure meant to encourage domestic production.
An import quota is a limit on the volume of a certain product that you can import
Non-tariff barriers are barriers to trade which take the form of unreasonable custom procedures, and product quality standards. They might stretch out customs inspections unnecessarily or limit the amount of import licenses issued.
Export subsidies are payments made to domestic producers of certain goods. The producers can then charge lower prices, which would lead to decreased imports sales and increased domestic and export sales for that product.
Specialization, while generally beneficial for a country, will snuff out certain industries. In order to protect themselves, these industries will convince the government to protect them from imports by enacting tariffs or import quotas. To do this they get involved politically and whisper in the right ears to enact trade policies. Obviously, since it costs more to produce these industrial goods domestically, money is taken from consumers through higher prices. However, it is not an obvious problem, so the majority of citizens are not aware of it, and certain messages which tell us to protect domestic jobs tend to overshadow the problem even more. The cost to protect these industries far outstrips the jobs and other benefits it provides.

Slide 7
The World Trade Organization is an international organization which oversees trade agreements between its member nations and mediates in trade disputes.
The European Union

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