Lesson: Trade Factors

In this lesson, Nick Palazzolo, CPA, breaks down the mechanisms that shape international trade policies, such as tariffs, quotas, and embargoes. He clarifies the role of tariffs as taxes on imported goods, explains their economic and political significance, and how they can impact the competition between domestic and foreign goods. Using relatable examples like the automotive industry and the pricing of iPhones abroad, Nick illustrates the practical effects of these trade factors in the global market. Additionally, he distinguishes quotas from tariffs by detailing restrictions on the volume of goods rather than their cost. Delving into embargoes, Nick stresses their function as a non-military approach to international relations, noting their prohibitive nature on trade with specific countries.