European Economics (MCM)

Front

Why is it important for countries to specialize when trading?

Back

No country can produce all of the goods and services its citizens need; Specialization is more efficient and cost effective; Specialization can lead to relationships between countries that can result in alliances.

Front

What type of trade barrier is this? The U.S. decides to charge an extra 20 cents per pound on avocados from Argentina to protect domestic avocado farm profits.

Back

Tariff

Front

What type of trade barrier is this? During WWII, Australia stopped all trade with Japan because the countries were on opposite sides of the war.

Back

Embargo

Front

What type of trade barrier is Brazil using by limiting the number of U.S. automobiles that can be sold in Brazil to protect its local automobile dealerships?

Back

Quota

Front

What type of trade barrier is this? The U.K. taxes all wood imports from Canada to make domestic wood cheaper.

Back

Tariff

Front

What type of trade barrier is this? The European Union bans all trade with Iran because Iran supports terrorist organizations.

Back

Embargo

Front

Why does international trade require a system of exchanging currency?

Back

Counties have different currencies with different values, and you need to know how much the currency is worth to make trade fair.

Front

What was the purpose of the European Union?

Back

Unite the different countries in Europe in cooperation, promote trade and economic growth, and establish a single currency, the Euro.

Front

The relationship between the members of the E.U. can best be described as:

Back

A loose alliance between several countries

Front

The level of wealth and material comfort available to a people

Back

Standard of Living