Why+Nations+Trade

**Encourage ** || Fomentar  || To make someone more likely to do something, or to make something more likely to happen. || **1)**
 * Word ||  Spanish Equivalent  ||  English Meaning  ||
 * **Expertise ** || Pericia  Habilidad  || A high level of knowledge or skill. ||
 * **Surplus ** || Excedente  || An amount which is more than is needed. ||
 * **Raise ** || Aumentar  Elevar  || To lift something to a higher position. ||
 * **Labour ** || <span style="color: #7030a0; display: block; font-family: 'Berlin Sans FB','sans-serif'; text-align: center;">Mano de obra  <span style="color: #7030a0; display: block; font-family: 'Berlin Sans FB','sans-serif'; text-align: center;">Trabajo  <span style="color: #7030a0; display: block; font-family: 'Berlin Sans FB','sans-serif'; text-align: center;">Tarea  || <span style="color: #7030a0; font-family: 'Berlin Sans FB','sans-serif';">Workers, especially people who do practical work with their hands. ||
 * **<span style="color: #7030a0; font-family: 'Berlin Sans FB','sans-serif';">Benefit ** || <span style="color: #7030a0; display: block; font-family: 'Berlin Sans FB','sans-serif'; text-align: center;">Beneficio  || <span style="color: #7030a0; font-family: 'Berlin Sans FB','sans-serif';">A helpful or good effect, or something intended to help ||
 * **<span style="color: #7030a0; font-family: 'Berlin Sans FB','sans-serif';">Decline ** || <span style="color: #7030a0; display: block; font-family: 'Berlin Sans FB','sans-serif'; text-align: center;">Disminución  || <span style="color: #7030a0; font-family: 'Berlin Sans FB','sans-serif';">To gradually become less, worse or lower. ||
 * **<span style="color: #7030a0; font-family: 'Berlin Sans FB','sans-serif';">Retaliate ** || <span style="color: #7030a0; display: block; font-family: 'Berlin Sans FB','sans-serif'; text-align: center;">Tomar represalias contraatacar  || <span style="color: #7030a0; font-family: 'Berlin Sans FB','sans-serif';">To hurt someone or do something harmful to them ||
 * **<span style="color: #7030a0; font-family: 'Berlin Sans FB','sans-serif';">Prevent ** || <span style="color: #7030a0; display: block; font-family: 'Berlin Sans FB','sans-serif'; text-align: center;">Prevenir  || <span style="color: #7030a0; font-family: 'Berlin Sans FB','sans-serif';">To stop something from happening or someone from doing something ||
 * **<span style="color: #7030a0; font-family: 'Berlin Sans FB','sans-serif';">Restrict ** || <span style="color: #7030a0; display: block; font-family: 'Berlin Sans FB','sans-serif'; text-align: center;">Restringir  || <span style="color: #7030a0; font-family: 'Berlin Sans FB','sans-serif';">To limit the movements or actions of someone ||
 * **<span style="color: #7030a0; font-family: 'Berlin Sans FB','sans-serif';">Customs ** || <span style="color: #7030a0; display: block; font-family: 'Berlin Sans FB','sans-serif'; text-align: center;">Costumbres  <span style="color: #7030a0; display: block; font-family: 'Berlin Sans FB','sans-serif'; text-align: center;">Aduana  || <span style="color: #7030a0; font-family: 'Berlin Sans FB','sans-serif';">A person whose job is to look inside travelers bags to make certain they are not taking goods into a country without paying taxes ||
 * **<span style="color: #7030a0; font-family: 'Berlin Sans FB','sans-serif';">Delay ** || <span style="color: #7030a0; display: block; font-family: 'Berlin Sans FB','sans-serif'; text-align: center;">Retraso  <span style="color: #7030a0; display: block; font-family: 'Berlin Sans FB','sans-serif'; text-align: center;">Demora  || <span style="color: #7030a0; font-family: 'Berlin Sans FB','sans-serif';">Something happen at a later time than originally planned or expected ||

<span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**Why nations trade?** <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**Lacks:** <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**- Raw Materials** <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**- Climate** <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**- Specialist labour** <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**- Capital** <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**- Technology**

<span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**2)** <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">

<span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">** Advantages of Protectionism **
<span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;"> <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;"> <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;"> <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;"> <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">
 * <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**Infant industries. If sunrise firms producing new-technology goods are to survive against established foreign producers then temporary tariffs or quotas may be needed.**
 * <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**Unfair competition. Foreign firms may receive subsidies or other government benefits.**
 * <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**Balance of payments. Reducing imports improves the balance of trade.**
 * <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**Strategic industries. To protect the manufacture of essential goods.**
 * <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**Declining industries.To protect declining industries from creating further structural unemployment.**

Disadvantages of Protectionism
<span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;"> <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">
 * <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**Prevents countries enjoying the full benefits of international specialization and trade.**
 * <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**Invites retaliation from foreign governments.**
 * <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**Protects inefficient home industries from foreign competition. Consumers pay more for inferior produce.**

<span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">
<span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**3)** <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">** Tariffs: are surcharges on the price of imports. ** <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;"> <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;"> <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;"> <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;"> <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;"> <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">  <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">** Quotas: restrict the actual quantity of an import allowed into a country. **  <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;"> <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;"> <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;"> <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;"> <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**4)** <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">
 * <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**raises the price of the import**
 * <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**reduces the demand for imports**
 * <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**encourages demand for home-produced substitutes**
 * <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**raises revenue for the government.**
 * <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**raises the price of imports**
 * <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**reduces the volume of imports**
 * <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**encourages demand for domestically made substitutes.**

<span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">** Other Protection Techniques **
<span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">
 * <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**Administrative practices can discriminate against imports through customs delays or setting specifications met by domestic, but not foreign, producers.**
 * <span style="color: #7030a0; font-family: 'Comic Sans MS',cursive;">**Exchange controls currency restrictions prevent domestic residents from acquiring sufficient foreign currency to pay for imports**