YT YouTube2Text

YouTube2Text → Transcripts → Barriers to Trade

Barriers to Trade — Transcript

by Andrew Johnson · 8,324 words · 1,209 segments · language en · Watch on YouTube

Open in transcriber Summarize with AI Download SRT/VTT

Full transcript

0:08welcome
0:11back so I gave you a little teaser there
0:14didn't I I said cultural we said there's
0:17three barriers to trade right there's
0:21physical there is cultural by the way in
0:25Germany you never do this you always go
0:29like that
0:31right that or that it doesn't matter
0:32which way you point but like a gun right
0:35you never do this in Germany no no no
0:38they will tell you that you don't do
0:40this in Germany because in Germany this
0:44kind of reminds them of World War
0:47I and so if you go like this you're
0:49saying World War II victory You Lost
0:52World War II they find that very abens
0:54so don't so so you go there and you say
0:56give me two of this and then we go no
0:58two okay so so
1:02physical cultural and political those
1:05are the three barriers to trade so let's
1:07talk about
1:08cultural supposing you're on a boat with
1:10your mama your spouse and your child
1:14suddenly the boat begins to sink you
1:17determine that you can only save one of
1:19them who do you
1:22save we're all the same right
1:27no according to the survey results
1:3060% of Americans said save the
1:33spouse 40% said save the children what
1:38about Mama Mama's dead now the reason
1:43they offered is the one that said save
1:46my spouse they said my spouse is my
1:47partner for life I can have more
1:50children the other one said save the
1:52children children represent the future
1:55so it's vital to protect them first
1:57probably my spouse would support this
1:59decision
2:03however among Asian cultures or
2:06Americans of recent Asian descent the
2:08answer is nearly 100% to save the
2:12mom the rationale of heard says my
2:16mother gave me life I owe her my life I
2:19can marry again I can have more children
2:23but I cannot replace her or otherwise
2:25repay the debt that I owe her so what's
2:29the moral of the story
2:30if you're on a boat and it's sinking
2:32hope you're an Asian mom because then
2:34you're going to be okay
2:38otherwise got some
2:41challenges
2:43culture culture companies have done all
2:46sorts of uh made all sorts of mistakes
2:49dealing with culture so one of the uh
2:53there was a famous mistake here a second
2:57where they talked about Woody the
2:58Woodpecker so
3:01ly the
3:05Woodpecker right he's a famous cartoon
3:08character you've probably all seen him
3:11in some some form like this right so in
3:17Japan they came up they were trying to
3:19teach people how to use uh internet
3:23browsers and how to use the mouse and
3:25things like it because they didn't know
3:26that they just came up with with this
3:28with this uh with the idea of the
3:30Internet it's fairly new nobody really
3:31knew so they got Woody the Woodpecker to
3:33come out and so they said and then gave
3:36instructions so has a little picture of
3:37Woody the Woodpecker and it says touch
3:39Woody the internet
3:43pecker yeah and you're saying what's
3:45wrong with that Google it you will
3:49figure that
3:50out it's very
3:53dirty wow w w
3:57cers coers put on its slogan turn it
4:00loose that's a that used to they used to
4:02always say turn it loose with CES go
4:04crazy I don't know when they translated
4:07it into Spanish it turned into suffer
4:09from
4:10diarrhea which actually might be telling
4:13the truth huh truth and
4:17advertising KFC KFC ah Kentucky KFC
4:22stands for Kentucky Fried Chicken okay
4:26so Kentucky Fried Chicken uh the their
4:29motto used to be finger looking good
4:33they so good you want to lick your
4:34fingers so wonderful right when they
4:37translated that into Chinese it came
4:39into eat your fingers
4:42off kind of a mistake yeah Electrolux is
4:46a real expensive vacuum cleaner company
4:48it's top end they didn't sell very well
4:51in the United States because their
4:52slogan was nothing sucks like Electrolux
5:01now there's was there was a tourist
5:04agency called kinky nepon tourist agency
5:09was a large tourist agencies uh and then
5:12they entered they started going
5:14International and they got all these
5:15weird requests for sex tours and nobody
5:18could they couldn't figure out why all
5:19of a sudden all these weirdos are coming
5:21to them wanting sex tours and then
5:23somebody had to explain what kinky
5:25means now and so I I understand they
5:28changed their name but then they changed
5:30it back so I don't know now I love
5:32Purdue chicken right so Purdue chicken
5:34is Fried Chicken it's I think it's a
5:36East Coast thing but you can go to
5:37Costco you can get pretty chicken right
5:39and so the motto was they had this big
5:41guy and he holding the chicken and it
5:43says it takes a tough man to make a
5:45tender chicken and he's holding his
5:47chicken
5:49right they went down to Mexico and
5:53translated into Spanish and it says it
5:55takes a hard man to make a chicken
5:57aroused
6:00cultural difference huh not
6:03language
6:04France by France yes so Toyota tried to
6:09sell a car called the MR2 you know the
6:11MR2 it's a tasty little two-seater
6:14sports car right it looks kind of like a
6:16Porsche fact if you if you don't know
6:18you'd see it and you say there's a
6:20Porsche you'd say okay yeah that's a
6:21Porsche um but it didn't sell very well
6:24in France because when you pronounce MR2
6:27it's m
6:29[Music]
6:31D sounds like m m what is M I'll give
6:35you a hint in German it's
6:38Shen crappy right would you really
6:42want
6:43to drive a car called the
6:47ship not not me not me okay um now if
6:53the French is interesting everybody says
6:55the French are rude you'll hear people
6:57say that all the time they say to be
6:58French is to be rude to be rude and to
7:00be
7:01French they're not rude it's French
7:05culture to be very very
7:08polite but they're not rude right so u i
7:13was I went to to Paris right I stayed
7:16stayed in uh in Paris uh and got a
7:19little hotel right little bed and
7:21breakfast right next to the Eiffel Tower
7:23it was really cool you can actually see
7:25the Eiffel Tower through the window and
7:26it Sparkles during Christmas time and
7:28they they light it all up it was really
7:30so anyway I'm staying in this hotel and
7:34I have to that I wanted it four nights
7:36but they only had room for me for three
7:39so I stayed at the first three nights
7:40I'm checking
7:41out as I'm getting out um uh I'm
7:45standing in line so it's a little mom
7:47and pop right so the owner is basically
7:49taking people taking their money and as
7:52I'm standing in line this woman comes in
7:55off the street right and she was
7:57obviously an American you could not miss
7:59it okay so she comes walks in there and
8:02she walks right up in front of everybody
8:04standing in line goes to the Head the
8:06person there and says do you speak
8:09English and the woman stops what she's
8:11doing she says yes I do she says yeah
8:15probably not so good anybody here speak
8:16English and I'm like going oh no no no
8:19no no so I'm like going don't look at me
8:22but I look like an American I do I just
8:25I look like an American right and so she
8:27says are you an American and I go
8:30yes she says well are their beds lumpy
8:33here I saidwhat she says are their beds
8:35lumpy because I won't stay in a place
8:37with lumpy beds I said no their beds
8:40aren't lumpy their beds are very nice
8:41but they don't have room that's why I'm
8:43I'd stay another night if I could they
8:45don't have rooms so if you don't have a
8:46reservation just why I won't stay with
8:48lumpy beds go they don't won't they
8:50don't have any beds at all right so then
8:53this woman walks out leaves walking down
8:55the out the door talking about lumpy
8:57beds that was weird right I'm like
9:00going okay right so then it comes my
9:03turn to check out and I go up to up to
9:07the person and I said B and she says b
9:12back and uh I said uh first off I want
9:15to apologize for that woman that was an
9:18ugly American and she should not have
9:20acted like that we're not all like that
9:23and her response was very interesting
9:24she said that was not an ugly American
9:28that was an ug
9:30person look she just kind of been the
9:34person been so rude to her and she
9:36figured that out they're not rude people
9:37they're very friendly right but there's
9:39just some certain things that cultural
9:41things you have to understand so for
9:42instance in the United States you go
9:45like that that means okay doesn't it or
9:48good right also means white power don't
9:51ever do this one that you just get all
9:53sorts of problems with it it means white
9:54power in In some cultures this means
9:57that you a homosexual in some cultures
10:00this means that that that this is the
10:01evil eye I'm giving you the evil eye
10:04this is just a a terrible thing to say
10:06to to hand signal to do but in France
10:11this means
10:12nothing zero right so the waiter you're
10:16at a restaurant the waiter says how was
10:17your meal and you say it was okay you
10:21just basically were sarcastic and rude
10:24on them yeah yeah so in the United
10:26States we wave at people hi in France
10:29this kind means go away yeah it's more
10:32like
10:33that can you see a problem right there
10:36right another one is the French are very
10:38very rude very very polite they start
10:41every conversation with a
10:46phrase
10:48whatever which means good day they start
10:51every conversation that way right no
10:53matter
10:54what if you go to them and don't say B
10:58your back
11:00they are very
11:01offended so I took a group of students
11:03to
11:04France and I first and I drilled in
11:07their head I say say bonjer start every
11:10conversation with bon bon and we
11:13practice and practice and practice and I
11:15took it to Paris we go to this nice
11:18restaurant and they give us the menus
11:20and we're all looking at our menus and
11:22the waiter comes up and he says buer how
11:25may I help you and one of my students
11:28looks up from his menu and
11:30says yeah give me some of this and give
11:34me some of this and give me this and the
11:36waiter supposed like
11:39one first off think about think about
11:43that somebody says boner to you and you
11:45go
11:47yeah terribly terribly rude right also
11:50the French don't say give me go to
11:52McDonald you see everybody they say give
11:54me that give me that give me that that's
11:56actually kind of new isn't it give me
11:59right in French they
12:01say I would like a little
12:04or I would like that's what they started
12:08it's a very polite way isn't that much
12:09more polite than gimme gimme give me
12:13yeah can you understand why now
12:15somebody's rude to you like wait at you
12:17zero gim me give me give me aren't
12:21you isn't it gonna be hard to be polight
12:24back it is it is the French French are
12:27interesting so I um
12:29uh I built a sailboat and I was sailing
12:32on the west coast of Vancouver Island
12:34now my sailboat that I
12:36built it's very unique looking let's
12:39just say that it looks like something
12:40that Andy would have done you don't need
12:42to know what it looked like you know
12:44what it looks like different right so
12:46I'm in this little Cove I'm anchored
12:47away and this boat comes in and they're
12:50from they've got the French flag flying
12:52on the back of their boat and they go
12:54they put down their
12:55anchor and then they get in their little
12:57rubber raft and they come over to say hi
12:59hi and they come over and they say B and
13:01I said B and we have this little
13:03conversation and um they start asking me
13:06questions about my boat because it looks
13:08so different it's you've never seen a
13:10boat like it trust me so they they're
13:12asking me questions and I said to them
13:14hey would you uh like to come aboard and
13:17take a look at the inside and they said
13:19oh no no no no and so then we talk some
13:21more and then my wife
13:24said are you sure you wouldn't like to
13:27come aboard and take a look at our boat
13:28and I said said to my wife honey I
13:31already asked them they said no and my
13:34wife says honey In some cultures you're
13:38supposed to say no the first time I said
13:41okay would you like to come on my boat
13:43they go yeah so they came on the boat
13:45and we talk right and we had we had a
13:47lot of fun with him um one the thing was
13:50interesting is uh you know and you watch
13:53movies by fr the French kiss each other
13:54all the time right they always go it's
13:56not a real kiss right they're kissing
13:58the air next to him and I was talking to
14:00this woman she was a corporate exec and
14:03she's sailing around the world in her in
14:05her yacht and I asked her I said do you
14:07guys really do those air kisses all the
14:09time and she says well sure constantly I
14:13said so you come in and to work and you
14:16give your employees an air kiss she says
14:17I give every one of my employees an air
14:19kiss every time I see them absolutely I
14:22go and she says why I said we just don't
14:26do that in the United States she says
14:28whatat do you do I said we shake hands
14:31she says no no no that's too intimate so
14:35shaking hands in French culture is more
14:39intimate than the air kiss or a
14:43smooch wow W
14:47so kind of crazy French now I went to
14:51China now I went to China I'll tell you
14:53a story later but I went to Tibet on a
14:56train and when I got to tiet tibet's
14:59about it's l of city it's about 18,000
15:03feet in the air it's really high right
15:06and you come off the train and the the
15:09train it's pressurized and they pump
15:11oxygen in on it and you get out and you
15:14take about three steps and you stop and
15:17you breathe and then you take another
15:19three steps and you stop and you breathe
15:23and then you say I'll just take four and
15:25then you sit down because it it freaks
15:27you out right and you're all dizzy and
15:30weird and it's like being having flu and
15:35hung over and dehydrated and just off
15:40off the marry go round all at the same
15:42time it's it's not a pleasant experience
15:44right so I get off the train I'm walking
15:46around it's like a wo okay that's kind
15:50of weird and then I um get onto a bus
15:55with with my friends so we're all on the
15:57bus and I'm it's all I can do to stand
16:01up right I'm just dizzy right then all
16:04of a sudden a hand grabs me right so I'm
16:06dizzy I'm I'm stoned right I'm sober but
16:09I'm stoned right like hand grabs me
16:12another hand grabs me and they start
16:14pulling me through the best I'm freaking
16:16out right I'm like going what's going on
16:19right and my friend says where you going
16:20I don't know they're just pulling me
16:22they took me to the back and set me down
16:24because they could tell that I was sick
16:25and they they they go like that guy is
16:28not not going to stand very much longer
16:30before he passes out so I'm sitting
16:32there
16:34going okay and then this guy Taps me on
16:38the shoulder and I turn around I go what
16:41and he goes he says he smiles at me he
16:44says something right I
16:46go I don't know what he said right so
16:49then I turned back around we did it
16:50again we did it again changed languages
16:53I don't know what language he was
16:54speaking but you know so tips finally he
16:58after like the fourth time he says where
17:01are you from and I said I'm from uh
17:08United
17:09States and he frowns at me goes right so
17:12then I turn back around again and a b b
17:15lighter Taps him on the the shoulder he
17:18says where are you from I said I'm from
17:23Seattle I goes they didn't like that
17:26answer either right so I turned back
17:27around he comes up Taps me on the
17:30shoulder again he says where are you
17:31from I said I'm from the United States
17:34of America and they goes America he get
17:38thumbs up and then he said something and
17:40then the whole bus turns around and
17:41smiles at me and it was it was an
17:43interesting experience so now I'm riding
17:46in the bus we're we're going from the
17:48train station to downtown L City Tibet
17:52right and you've all seen pictures of
17:54patella Palace it's beautiful palace in
17:57in in LA City sleep to bed and as I'm I
18:00get off the bus there's this little old
18:03lady who comes and greets me as I'm
18:06getting off the
18:07bus she comes up and looks at me and she
18:10goes just like that right so here's what
18:14happens you go to to
18:15bed this is what you're gonna say can
18:17you imagine getting off the bus you're
18:19Stone
18:20you're you you're dizzy and all of a
18:23sudden the this this little old lady and
18:25she puts out her tongue and then all
18:26sudden I look around and everybody's
18:28slinging their tongue out at me
18:29everybody's
18:30going I'm like
18:33going not what I expected right do you
18:36expect to that to happen you know of
18:38course I'm the only one that looks like
18:39this anywhere near but at the same time
18:42they're sticking their tongue out at me
18:44and I'm saying what does that
18:46mean and it turns out that in Tibet it's
18:50considered respectful to stick out your
18:52tongue that's actually that's a way to
18:54say
18:55hello can you imagine somebody come up
18:57and go now there's a reason for it too
19:00so I had to found out the reason for it
19:02this is just crazy how why would they
19:04stick their tongue out at me it turns
19:06out that there was like an evil King
19:09thousands of years ago right and he
19:11killed lots of people right now he had a
19:15purple
19:17tongue and see the Tibetans believe in
19:20reincarnation they think after you die
19:21you come back as something else so they
19:24stick their tongue out at you so you can
19:26see their tongue to know that they're
19:28not the evil King who's been
19:31reincarnated and so that that's just
19:33kind of how they do things and so you
19:35walk around and people just see them do
19:38the younger people kind of know it's a
19:40little weird so they'll go but you'll
19:42have the old people
19:44[Music]
19:46going it just can you see that's a
19:48cultural difference there
19:50huh
19:51H cultural
19:55difference the next one is political
19:57barriers so we said there's
19:59physical there's
20:01cultural and then there's political
20:05let's go back to cultural because it's
20:06kind of fun you know there are all sorts
20:07of hand signals that you don't know so
20:09we said this is a bad one this is bad
20:11for all sorts of reasons right you go
20:13thumbs up hey right like The Fawns hey
20:16by the way some places means up your
20:19butt some places this
20:24means bad right it's not not not too
20:27good in France they go like this don't
20:29ever go like this wiggle like the rabbit
20:31ears wiggling that
20:34means that now so George Bush Senor
20:39remember we I showed you the picture of
20:40George Bush Senor he went down to South
20:43America and when he went down to South
20:45America he was riding his limousine
20:48right and he's sitting next to the door
20:51and he wanted to go like this because
20:53this is okay in South America he goes
20:55like this but he can't because the
20:57window's there so he goes like like this
20:59against the windows this in South
21:02America in fact in a lot of countries
21:04you show the fingernail you're basically
21:06doing that and they took a picture of
21:08him and put him in the newspaper saying
21:10that he was flipping off all of South
21:12South America he wasn't just poor guy he
21:15just couldn't turn to get to that thing
21:18well his son became president in the
21:19United States he went to Norway and did
21:21this which is hookham horns Longhorns
21:25Texas A&M something like that right well
21:28in Norway this means the devil sign so
21:30they had a picture of him going like
21:32this and then they say he's a devil
21:35worshipper I mean there's all sorts of
21:38uh all sorts of crazy craziness that you
21:41can go through
21:42okay political barriers to trade right
21:46political all countries love to export
21:49and hate to import they say North Korea
21:52doesn't love to export yes they do every
21:55country loves to export and they hate to
21:57import
21:59when you export what do you
22:03get when you sell something you get
22:06money hey hey also what else do you get
22:09you create jobs at home don't you you
22:11also get influence in those other
22:14countries so the the Olympics do you
22:18know almost every country that hosts the
22:20Olympics loses money it's a loser you
22:24don't want it yes you do so when you go
22:27to China for the Olympics
22:29you discover all these Wonderful Chinese
22:30truth that you didn't know about so then
22:32when you get back home you say oh I'd
22:34like to try have this and you start to
22:36buy more Chinese products and now
22:38they're exporting more so that even
22:40though they're losing money on the
22:42Olympics they end up making
22:45money you know it's the theme Here
22:47losing money to make money you could do
22:49it that's what okay so why do we hate to
22:51import because you're reliant on it you
22:54know the United States makes enough food
22:55to feed the world all the farmers
22:57outside the United States could stop
23:00farming and just buy American food and
23:03we have enough to feed the world right
23:06would you want to rely on the United
23:07States for all of your
23:10food I wouldn't I wouldn't so when you
23:14import you become reliant on it so what
23:17happens if China decides they don't want
23:19to sell us
23:20toasters we don't make toasters oh buy
23:23them from Mexico okay but still you get
23:26reliant on them don't you yeah so all
23:30countries actively encourage exporting
23:32and discourage importing but there's a
23:34problem with that isn't there
23:36comparative advantage right can you
23:39always be the best at
23:41everything no you can't you can be good
23:44at a lot of stuff but you can never be
23:46the best at everything so if somebody
23:48else Does It Better Faster cheaper
23:51yummier why not let them do
23:54it makes a lot of sense
23:59so we have political barriers to trade
24:01so a lot of times we try to stop trade
24:04by doing certain things so three forms
24:07of political barriers of trade that
24:08we're going to talk about in this class
24:10there actually a lot more but the three
24:12biggies are tffs embargos and
24:18quotas did you know that the more a
24:20country trades with another country the
24:22less likely they are to go to
24:24war they are yeah so let's look at
24:27United States trade with Cuba North
24:29Korea and
24:31Iran we don't trade very much with them
24:34we just opened up with Cuba a little bit
24:36now and you can go buy you can go down
24:39there and bring a box of Cuban cigars
24:42back home basically $100 worth of cigars
24:44it's box right but you can't do anything
24:47else that's it it's very
24:50limited right what's our relationship
24:52with Cuba Cuba not so good okay North
24:56Korea we don't trade with North Korea
24:58I've how often do you see North Korean
25:00products you don't right now how's our
25:03relationship what's the relationship
25:05between the United States in North
25:07Korea we're at War we have been at war
25:11with North Korea for a long time we're
25:14not a war we are technically in a state
25:16of War do you trade with countries that
25:19you're at a war
25:20with no you don't and Iran you don't see
25:25Iranian stuff there not a good deal
25:28right now United States and China we've
25:30traded for a long time we're big trading
25:32partners with each other yeah and we
25:34started slowing down on our trade with
25:37them and what's happened as a result of
25:39that what's happened to our relationship
25:41with China it's starting to degrade
25:44isn't
25:48it now what would happen to the Chinese
25:50economy if they went to war with the
25:52United States
25:53again say again yeah the the Korean war
25:56was really a war between the United
25:58States and China okay so what would
26:00happen to their economy well their
26:02economy would crash what would happen to
26:04our economy if our fourth largest
26:05trading partner just stopped we don't
26:07get their stuff anymore it would crash
26:10wow so the more you trade the better
26:12relationship you have don't
26:15you so tariffs embargos and
26:21quotas that's didn't come out quite so
26:23well okay a tariff a tariff is a tax and
26:28it's usually on import because countries
26:30hate to import so you put a tax on their
26:33stuff so makes things more
26:36expensive okay that's a
26:39tariff a quota is a number
26:44limit so we say you're only going to
26:46allow so many of these units to come
26:49into our
26:50country and embargo is a number limit of
26:54zero meaning you don't let anything so
26:58we put a tariff on Chinese Goods okay
27:02that we so they pay a
27:05tax well do they pay a tax we'll see if
27:08that really works but that's a tax on
27:10their stuff taxing Chinese Imports right
27:13we put a quota on Cuba we say you can
27:17only bring in so much stuff it's
27:20limited right and we have an embargo
27:23against North Korea and Iran which
27:26embargo means nothing we don't TR
27:28you don't get the stuff yeah now we
27:32didn't used to have a we used to have a
27:34full embargo against Cuba you couldn't
27:37get Cuban cigars well yeah you could
27:39just go up to Canada and buy them but
27:41technically that was illegal if you were
27:43US citizen and you bought them but now
27:45you can yeah and people say Cuban
27:48cigars why are Cuban cigars so good
27:51because they're Cuban cigars because you
27:54couldn't get them actually Dominican
27:56Republic cigars if you look read the
27:57cigar magazine I'm not a cigar person
27:59but you read it they say Dominican
28:01Republic has the best cigars still want
28:03the Cuban don't you because you want
28:05what you can't have it's the way we all
28:08are
28:09[Music]
28:10wow so protectionism I don't know why
28:13this did that let's try to move it
28:25down let's try this
28:32protectionism protectionism is when you
28:34try to
28:35protect your local your domestic
28:39companies from born
28:42competition so we want to protect our
28:45own Industries because we' like to keep
28:47it's we like we don't want to import and
28:50so one way to is we can protect our
28:52companies so in the mid 80s
28:56Harley-Davidson made pretty terrible
28:59motorcycles they were junk right in the
29:01mid 80s if you went to a Harley-Davidson
29:05dealership you would find brand new
29:09motorcycles with cardboard underneath
29:12them to catch the oil as it dripped out
29:15of the brand new
29:17motorcycle now I ride motorcycles right
29:21you don't have to ride motorcycles to
29:23know that having a motorcycle that drips
29:26oil in front of the rear tire is a bad
29:29idea isn't it I mean it's just it's a
29:33bad idea right Harley-Davidson
29:35motorcycles were junk they dripped oil
29:39they were just pieces of garbage Right
29:41Honda made much much much better
29:45motorcycles they were better by every
29:47standard they were faster they were more
29:50reliable they were safer well they
29:52didn't have a self oiling rear tire
29:54right and they they they looked better
29:57they had better styling they were better
29:58by every
30:00standard so which would you rather have
30:03a Harley-Davidson or a Honda back then
30:06you say I'd rather have the Honda I
30:09don't want to die right that's right so
30:11Harley-Davidson went to the United
30:13States government says we need
30:14protection from the Honda
30:17threat so the US government says okay
30:21we're going to put a tariff on
30:23Hondas right goes woohoo sounds good
30:26right so they put a tax on The Hondas so
30:30now they made Hondas more
30:34expensive which would you rather have
30:37something that's cheap or something that
30:40is
30:41expensive well I don't know it depends
30:43on the thing come on all all
30:46generally would you rather have an
30:48expensive diamond
30:50ring or a cheap diamond
30:54ring would you rather have an expensive
30:56house or a cheap house would you rather
30:57have expensive car a cheap car would you
30:59have expensive food versus cheap
31:02food right you say oh I like cheap food
31:05okay you we'll let you eat a bowl of
31:07rice every day for the rest of your life
31:09that's your meal no you don't you want
31:12the good stuff everybody does right so
31:14now that did something to the demand
31:17curve for Hond because they're expensive
31:19I want the expensive stuff I want the
31:21French
31:22wine it didn't work right so now people
31:25the theand curve see that words coming
31:28back demand curve for Hondas increased
31:31so they said okay what what we'll do is
31:33we'll put a quota on Hondas we'll limit
31:37the number of Hondas that can come into
31:39the United
31:41States and you're saying wait a second
31:44so now Hondas are expensive and
31:49rare what do you want something that's
31:53expensive and rare or something that's
31:56cheap and dangerous
31:59[Music]
32:03yeah yeah yeah so it actually caused
32:05people to want Hondas
32:09more Hardley Davidson ended up saying no
32:13take it away take this tariff away take
32:16the quot away we'll talk more about how
32:18Harley-Davidson did that it's kind of
32:20fun okay
32:22so in Russia they used to have a country
32:25called the Soviet Union the mighty
32:27Soviet Union
32:28Soviet Union was protectionist which
32:31means they only wanted Soviet citizens
32:34to use Soviet
32:37products so if you wanted a
32:39car you had to buy a Soviet
32:44car you don't want the Soviet car do you
32:47know heater was an option on those cars
32:49an option to get a heater in a Northern
32:52Klein country yeah yeah they were
32:54terrible cars right if you wanted a
32:57television set
32:59got the Soviet TV set what if you wanted
33:04bananas do they grow bananas in
33:07Russia I don't know they might grow some
33:11but are they going to be as efficient
33:12growing bananas in Russia in the cool
33:13climate no so one day the Soviet Union
33:18collapsed what had happened was
33:20basically you can't be best at
33:22everything comparative advantage you're
33:24going to be good at some things bad at
33:25other things they try to be the best at
33:27everything and they couldn't do that and
33:29they just collaps they went
33:31bankrupt what was left over was one of
33:33the big countries was part of the Soviet
33:35Union was Russia so Russia says we're
33:38going to be a market economy which means
33:41we're going to let our people buy stuff
33:43from all over the world because we can
33:45make some things better than they can
33:47they can make some things better than we
33:48can let's focus on what we're good at
33:51right so they open up the market so now
33:55you have factories that haven't had any
33:59competition no reason to improve for the
34:02last 50
34:03years what is going to happen to some of
34:06those
34:06factories because now of a sudden they
34:08have to compete with the
34:10world they're gonna they're going to
34:13close right so they're they're going to
34:15close so one little Factory in uh
34:20South East Russia made television
34:25sets TVs right uh when you think of high
34:29quality Electronics do you think of TVs
34:31from
34:32Russia I don't right and there's a
34:35country near Russia that part of Russia
34:38that makes excellent TV sets and that's
34:41Japan so now you're you're a Russian and
34:44you have a choice you can either buy a
34:45$300 Russian TV set or a $300 Japanese
34:48TV set which are you gonna buy of course
34:50you're gonna buy the Japanese TV set but
34:52we got a problem now money is Flowing
34:54from Russia a poor country to to Japan a
34:58wealthy country creating jobs in Japan
35:01this is bad we got to stop it so they
35:04said let's put a 100% tariff on
35:08Japanese products oh okay so they put a
35:12100% tariff on Japanese on Japanese TV
35:15sets so now you're a Russian person you
35:18don't have much money you can either buy
35:20a Russian TV set for $300 or a Japanese
35:22TV set for
35:24$600 now some of us would say I'll stick
35:27with the 600 I'll buy the Japanese TV
35:30it's worth it right others of us going
35:32to say I'll save some money and I'll buy
35:34the the Russian TV set so it's slowing
35:37it down but but there's a problem I
35:38didn't I I forgot to mention one little
35:41thing the Russian TV sets don't
35:44work they don't right you bring them
35:47home you plug it in it works for 15 20
35:50minutes and then smoke comes out and
35:52they're they're they're done right
35:55they're not good at making TV sets so
35:57now you have a choice
35:58bu a Russian TV set for $300 that
36:00doesn't work or buy a Japanese TV set
36:04for $600 it does work course you're
36:06going to buy the Japanese TV set which
36:08we're still money's flowing into Japan
36:11creating jobs in Japan we hate this we
36:13need to stop it let's put another tariff
36:16on that thing so now it's
36:18$900 to buy the Japanese TV set you know
36:21what
36:22happens somebody buys a boat and they go
36:27they take a little trip from Russia to
36:29Japan and what do you think they buy
36:32when they're in Japan a bunch of TV
36:35sets then they take that boat and
36:38goo they sneak back into Japan into
36:41Russia and put these these TV sets on
36:44the back of trucks and the trucks go all
36:46over Russia and they're selling them out
36:48of the back for
36:51$500 so now you're a Russian citizen you
36:54can buy a Russian TV set for $300 it
36:56does not work you can buy a very good
36:58Japanese TV set at the store for
37:02$900 or you can buy it out of the back
37:04that same t television set buy it out of
37:07the back of the truck for $500 where are
37:09you gonna buy he said I'm buying out of
37:12the back of the truck uhuh that's
37:14illegal you know that that's crime well
37:17so it's TV said by the way can they
37:20start to make a lot of money smuggling
37:23television
37:25sets they can start to make a lot money
37:28yeah called crime yeah they now the
37:31Russians they're smart they say you know
37:35what we need to send the police after
37:37these guys because these guys are making
37:40money and this is illegal let's get
37:43let's send the police after them so they
37:45send the police after you you're making
37:47a million dollars a month selling
37:49illegal television sets and the police
37:51come to
37:52you how can we get the police to leave
37:55us alone
37:57why don't we pay him off or give him a
38:00couple TV sets that's called
38:03corruption oh it gets worse you got a
38:07cop this policeman will not take a bribe
38:10he says no this is illegal how do we get
38:14that policeman to leave us
38:17alone called
38:20Murder so corruption murder and crime we
38:23have a word for this it's called the
38:25mafia
38:27the Russian TV set Mafia is the mafia
38:30big time in Russia it's a big problem in
38:33Russia right it's a big and it was
38:35created by the government they didn't
38:37mean to they didn't say let's make the
38:39mafia they didn't mean to but that's
38:42what
38:43happened wow can you imagine people
38:45dying for television s
38:48well gets uh gets more interesting
38:51because the Russians are smart they said
38:54we are never going to compete with the
38:55Japanese on television sets we can't
38:58they're better at that so they took
39:00their Factory and they retooled it and
39:02now they make tractors turns out
39:05Russians are really good at making
39:07tractors and they sell their tractors
39:09all over the world which is exporting
39:12and it makes some money I've traveled
39:13all over the world you see Russian
39:15tractors everywhere right because
39:17they're very good at making it the
39:18Japanese don't make tractors they make
39:20tiny little tractors like little little
39:22bitty
39:23nothings they don't make big tractors
39:25because you can't use big tractor in
39:27Japan
39:27right and so it's a winwin so then the
39:30mafia goes and they do something else
39:32right but they they were able to stop it
39:35it's it's even more interesting did you
39:37know that the Canadian government did
39:39some research and they found out that
39:42cigarettes are bad for
39:44you and they don't want their people to
39:46smoke cigarettes because they're bad for
39:48you and they have socialized medicine so
39:50the government has to pay for you when
39:51you get sick so they said let's put a
39:54tariff on cigarettes by the way where do
39:57you think they get most of their
39:59cigarettes
40:01us so we sell them a product that kills
40:06their people and expensive and so they
40:09said we're going to put a tariff so they
40:11put a tariff on American cigarettes and
40:13it was a big tariff like I don't know
40:15like $10 a pack cigarette tariff it's
40:19huge now will some people stop smoking
40:22yes will some people start coming to the
40:25United States buying the cigarettes and
40:26SM smuggling them back into
40:30Canada yes and pretty soon you can start
40:34to make a lot of money smuggling in
40:36cigarettes it's called the Canadian
40:39cigarette
40:40Mafia really had a Canadian cigarette
40:44mafia i' they have people shooting each
40:46other for cigarettes I've heard of dying
40:48for a cigarette but that's not what they
40:51mean but that's those crazy
40:54Canadians we're smarter than that in the
40:56United States aren't
40:59we no we're not we're not I found that
41:03every time I think I'm smarter than
41:04somebody else I find out that I'm wrong
41:07whatever it is if somebody says are are
41:09you sure about that I'm gonna go like
41:11man I was until you asked me that
41:13question every time I think I know
41:15something that they don't know I find
41:16out that I'm right so our government did
41:20some
41:21research and they found out that one
41:24drug is worse for you than all other
41:28illegal types of drugs together this one
41:31drug kills more people causes more pain
41:34and injury than all the other drugs put
41:37together
41:39alcohol now alcohol alcohol because what
41:42do people do when they they get drunk
41:45sometimes they drive bad idea they fall
41:51downstairs or they get into fights and
41:53you know you watch television and
41:54somebody hits somebody with a bottle and
41:56they go h I'll get you back it doesn't
41:59work that way you get hit with a bottle
42:00like that you die right it it so people
42:04die it's terrible so the United States
42:06government
42:07says we're going to make alcohol illegal
42:11it's called the
42:12prohibition y so they made alcohol
42:15illegal in the United States what do you
42:16think happened to alcohol consumption
42:19once it became
42:23illegal it went up what it's illegal
42:28it went up it went up a lot why would it
42:31should go down NOP because you want what
42:34you can't have so if you look at you if
42:38you chart alcohol consumption of people
42:40in the United States alcohol consumption
42:43as they approach 21 goes
42:49up it goes up now what do you think
42:51happens after they turn 21 now not the
42:54night they turn 21 we all know what
42:56happens that night right but after they
42:58turn 21 starts to Trend
43:02down wow because you can get it it's not
43:05a big deal right but they made it
43:07illegal alcohol was illegal in the
43:09United States and
43:12so where do you think we got our alcohol
43:14if it's illegal to make alcohol where do
43:16you think we got it I'll give you a hint
43:18they're our friends and they're up
43:21north and 20y olds love to go up there
43:25to get alcohol good Canadian whiskey you
43:29ever notice go to the liquor store you
43:31see there's a lot of Whiskey from Canada
43:33because of the prohibition right they
43:34were they big producers of whiskey right
43:36so consumption went up what do you think
43:38happened to organized crime during this
43:42time it was bad no it was it was real
43:46bad you didn't want to live in the in
43:48the United States back then right they
43:50had alapon scarf face they had the St
43:54Valentine's Day masac this this was a
43:56thuggery right you couldn't everybody
43:58walked around with guns it was not a
44:00happy place to
44:02be and so they said hey this is just not
44:06working right we're tearing ourselves
44:08apart not a good idea so they made
44:12alcohol
44:13legal now what happened to organized
44:15crime they went away they invested in
44:18Microsoft or something I don't know they
44:20do something else right and they're gone
44:22so you don't hear about the Budweiser
44:23Mafia any longer do now a lot of people
44:27say
44:28Andy are you saying we should legalize
44:32drugs no I'm not saying that we should
44:34legalize drugs but wait a
44:37second aren't we starting to do
44:43that
44:45yeah so I think
44:47Minnesota didn't they just pass a law to
44:50make M they decriminalized magic
44:54mushrooms so if you go up there and go
44:56shomman
44:59and in the state of
45:01Washington didn't we kind of
45:05decriminalize
45:06marijuana or decriminalize is different
45:09than making
45:14legal it is but we've almost we've
45:18almost gone that whole other direction
45:20and they're going to vote and make it
45:22marijuana legal in the rest of the
45:25country and they're they're doing that
45:26because they say you know all the crime
45:28and murder associated with it so before
45:32you got a handful of weed cop pulls you
45:36over you might be going to jail for a
45:39long time would that could that convince
45:42you to do some things that are really
45:44not a good idea yes and so they said
45:49stupid right and yeah because you want
45:52what you can't have you just do
45:57okay so everybody knows that
45:59protectionism is bad it's a bad deal we
46:02don't want it right but you kind of want
46:05it because you want it you don't want to
46:07import you want to export but if if
46:11everybody exports somebody's got to
46:13import don't you and then you lose
46:15comparative advantage so they said we
46:16need to stop it and so the first way
46:20they came up with stopping was to stop
46:22protectionism was something called
46:25NAFTA NAFTA stands for North American
46:29Free Trade
46:32Agreement NAFTA North American Free
46:35Trade Agreement the idea there is free
46:37trade so can the Canadians do some
46:40things better than the
46:43Americans we're not really Americans
46:45we're the United States of America okay
46:47I'm a Johnson can I call myself a
46:49Johnson if I my name is John last name
46:52is Johnson our name is United States of
46:55America people get weird about they go
46:57we're not we're Americans too sure I
47:00meet lots of other Johnson's too that
47:02just because I call myself a Johnson
47:03doesn't mean you're not a
47:05Johnson crazy right so can the Canadians
47:08do some things better than the Americans
47:10yes can the Mexicans do some things
47:12better than Americans yes can the
47:14Mexicans do some things better than the
47:15Canadians yes can the Canadians do some
47:17things better than the Mexicans yes
47:20right so why don't we do free trade and
47:22let each one focus on what they're best
47:25at okay so it's three countries United
47:28States Canada and meico right now some
47:31of your older textbooks might mention
47:34that Chile is supposed to join NAFTA
47:38that's out ofate information that's
47:40never going to happen right it would
47:42have been nice and it was all supposed
47:44to happen but it fell apart at the last
47:48second now why would we want Chile well
47:51I'll give you a hint when it's hot in
47:54Seattle it's Chile in Chile right and
47:59when it's cold in Seattle it's warm in
48:03Chile because they're on this opposite
48:05side of the they're in the southern
48:07hemisphere so when we have summer they
48:09have winter and vice versa also Chile if
48:12you look at Chile on the map it's a
48:13pencil it's this long skinny country
48:15with lots of Coastline how do you get
48:18products from Chile to the United States
48:20boat very efficient hey great idea right
48:24so my favorite food is watermelon I had
48:27watermelon this morning I love
48:28watermelon right watermelon in the
48:33winter it's so expensive it's really
48:37expensive right because we put embargos
48:40and tariffs and stuff on their stuff and
48:42if they didn't then it wouldn't be that
48:43it would be cheap and would be wonderful
48:44for
48:45everybody
48:48yeah NAFTA so Chile is not going to join
48:52join so it's three countries and it's
48:55supposed to be helpful now let's think
48:56about tax for a second people love to
48:59talk about taxes so we decided that we
49:01were going to put a tax on Chinese
49:06steel we'll talk more because we want to
49:08protect our own Steel Industries we
49:11don't have Steel Industries anymore
49:13we'll talk about that so we're going to
49:15put a tariff on Chinese Steel in fact
49:18we're gonna put we put tariffs on lots
49:20of Chinese products and everybody goes
49:22yes let's put a tariff on that way we
49:25can make it ourselves keep on our money
49:26here in the United States they don't
49:28understand comparative advantage but
49:30also let's put a tax on the Chinese that
49:32way we don't have to pay yeah let's put
49:35a tax on Chinese steel here's a
49:38question who pays the tax the producer
49:42or the
49:44consumer when you go to McDonald's you
49:47say I want a hamburger they say and it's
49:50a125 and then you go here's your do25
49:53they say plus tax we need 11 more cents
49:58you but didn't say that on there it's
50:00plus tax right you go anywhere it's plus
50:04tax isn't it so the consumer is paying
50:07for it so what happens is we can say hey
50:10we're going to lower your taxes and
50:13we're going to put a tariff on Chinese
50:15products so the Chinese will pay the tax
50:18and you're like going lower my taxes who
50:20make the Chinese pay my taxes wo this
50:22sounds like a great idea doesn't because
50:25who pays the taxes you do I do right so
50:30when they put a tariff on Chinese
50:32products who's paying that we are and
50:36what products are used are made or
50:38distributed using
50:41steel everything so when I put a tax on
50:44Chinese
50:45Goods I'm really putting a hidden tax on
50:53Americans oh wait that didn't sound so
50:56fun does it I know it sounded really
50:59good originally didn't it and people
51:01don't if you don't know about
51:02comparative advantage you don't know
51:04about this stuff now you're like well
51:07wait maybe I'd rather pay more in taxes
51:11maybe maybe NAFTA North American Free
51:14Trade Agreement and the idea there is we
51:18won't do protections against them if
51:19they don't do it to do it against
51:22us okay um and a lot of people were
51:26against it when it first passed it was
51:28in the
51:2990s and a lot of people say so so the
51:32Republicans right now say it was passed
51:35under Bill Clinton he's a Democrat it's
51:38Bill Clinton's thing and Bill Clinton
51:40will say yes I passed it Bill Clinton
51:43inherited it from George Bush so NAFTA
51:46actually is a
51:48Republican bill that was passed by a
51:52Democrat right so neither one can say
51:55it's the other side both sides they they
51:58both liked it it actually pretty good
52:00right currently now they say oh that's
52:02the Democrat thing we have to have our
52:03new one we'll talk more about that thing
52:06okay but a lot of people said oh it's
52:07bad because all of our jobs are gonna go
52:09down to
52:10Mexico so why would you move your
52:12factory to Mexico cheap
52:15labor no they were all 100% right and
52:20they were all 100% wrong at the same
52:22time I'll tell you more about that next
52:25video thanks a lot have a nice
52:47day oh my
52:50goodness it won't let me stop the video
52:53there it
52:55goes for

About this transcript

This page contains the full transcript of Barriers to Trade by Andrew Johnson, generated from the public captions YouTube serves with the video. The transcript has 8,324 words across 1,209 segments, with the original timestamps preserved so you can click any line to jump to that moment in the embedded player.

What you can do with it

Use the transcript to take notes, quote the speaker, build a study guide, generate a summary with ChatGPT or Claude via the YouTube Summary tool, or export it as a timed subtitle file with YouTube to SRT. You can also re-open it in the transcriber to translate the transcript into 100+ languages.

Free YouTube transcript tool

YouTube2Text is a free YouTube transcript generator — no signup, no daily limit. Paste any YouTube link and get the full transcript instantly, with timestamps, click-to-jump, translation to 100+ languages, AI prompts for ChatGPT, Claude, and Gemini, and exports to TXT, SRT, VTT, or Markdown.