SS7E6 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?

Back

The process of focusing on a specific area or field of study or work, becoming an expert in that particular area.

Front

Why is specialization important in international trade?

Back

To increase efficiency and productivity, and promote economic growth.

Front

What is interdependence?

Back

Mutual reliance and interconnectedness between individuals, groups, or systems.

Front

How does interdependence affect global economies?

Back

Interdependence affects global economies by creating interconnectedness and reliance between countries.