SS7E5 Flashcard

Front

What is an economic system?

Back

A way in which a society organizes the production, distribution, and consumption of goods and services.

Front

Name one type of economic system.

Back

Market economy

Front

What is a trade agreement?

Back

A trade agreement is a negotiated agreement between two or more countries that outlines the terms and conditions for their trade relationship.

Front

Give an example of a trade agreement.

Back

North American Free Trade Agreement (NAFTA)

Front

What is currency exchange rate?

Back

The currency exchange rate is the rate at which one currency can be exchanged for another.

Front

How does currency exchange rate affect international trade?

Back

Currency exchange rates affect international trade by influencing the cost of imported and exported goods.

Front

What is specialization in economics?

Back

The process by which individuals, businesses, or countries focus on producing a limited range of goods or services to increase efficiency and productivity.

Front

Why is specialization important in international trade?

Back

To increase efficiency and productivity, and promote economic growth.

Front

What are the advantages of specialization?

Back

Increased expertise, efficiency, and higher quality goods or services.

Front

What are the disadvantages of specialization?

Back

Limited job opportunities, lack of flexibility, and potential obsolescence of skills.