Review Questions Directions: Read each main idea and answer the questions below. Refer to your textbook as you write the answers. A. Restricting International Trade Main Idea: Countries use many different methods to protect domestic industries by restricting trade. 1 . How do tariffs restrict trade and protect domestic industries? 2. How do quotas restrict trade and protect domestic industries? 3. What other methods do countries use to restrict trade? B. Arguments for Protection Main Idea: Countries that restrict trade offer many different arguments for restricting trade, some of which are more compelling than others. 1. How might trade hurt a country in a time of war? 2. How do trade barriers protect infant industries and local jobs? 3. Why do nationalists sometimes support barriers to trade? 4. What is the most compelling reason for restricting trade and why? c. The Free Trade Movement Main Idea: Recently, countries have been joining together to reduce barriers to trade. 1. What was the purpose of the GATT? 2. What is the WTO, and what does it do? 3. What were some of the costs and benets of NAFTA? Summary and Reection Directions: Surrmarize the main ideas of this lesson by answering the question below. Compare and contrast the arguments of the protectionists with those of the free traders. Which side of the debate do you think would be best for the economy and why