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Trade, tariffs & globalization

Grade 7 · Social Studies · Free lesson

Hey there! Ready to explore how countries share goods and how we can use context clues to master new words?

Today, we connect with the whole world through trade. When countries buy and sell with each other, we call this globalization. It brings us cool goods from far away, but it also means we need to learn how global business works.

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To understand trade, we must look at word roots. The word 'export' has the root 'port,' which means to carry. The prefix 'ex-' means out, so to export means to carry goods out of a country to sell them.

EX Export: Carrying goods OUT

Sometimes, countries want to protect their own local businesses. Instead of keeping trade totally free, they might place a tariff, which is a tax on imported goods. We can use contrast clues to see that a tariff is the opposite of a free, untaxed trade.

Tariff: A tax barrier on incoming goods
✏️ Worked example

Read this sentence: 'While some nations enjoy open, tax-free commerce, others place a tariff on foreign goods to shield local factories.' Let's find the meaning of 'tariff' using contrast context clues, and look at the root of 'commerce.'

  1. First, look for contrast words. The word 'While' tells us that two opposite ideas are being compared.
  2. Next, identify the known side. The first part of the sentence mentions 'open, tax-free commerce.' This means trading without extra fees.
  3. Then, look at the opposite side. The sentence contrasts 'tax-free' with 'place a tariff on foreign goods.'
  4. By using this contrast, we can determine that a 'tariff' must be a tax placed on goods coming from other countries.
  5. Finally, let's look at 'commerce.' It comes from the Latin root 'mercx,' which means merchandise or goods. The prefix 'com-' means together. So, commerce means trading goods together!
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