Voluntary Trade in Latin America

Voluntary Trade in Latin America

Open Ended

Why do countries trade?

Multiple Choice

How does a country decide with whom to trade?

• They choose a country that they like the best.

• They choose the country that their ancestors came from.

• They choose a country that is very similar to their own.

• They choose a country that has the goods and services that they need and can get at the best price.

Multiple Choice

SS6G2a Which of the following best explains how specialization encourages trade between nations?

• Specialization encourages businesses to make a wide variety of items, that way it ensures that someone will want to trade with them.

• Countries that are allies will always want to trade with each other.

• Specialization allows nations to protect domestic markets from foreign competition and block the importation of dangerous products.

• Specialization allows nations to choose to market only those products/services which they are capable of providing fastest, cheapest, and in great abundance.

Multiple Select

Which are correct about specialization?

• It is the most efficient way to work.

• It makes the price of products more expensive.

• It allows people to like the products more.

• It makes the price of products lower.

Multiple Choice

Countries specialize in what they ____________.

• do the worst at

• do the best at

• enjoy the most

• dislike the most

Multiple Choice

If Brazil's government puts a limit on how much Mexican oil it will import this year, it is imposing which type of trade barrier?

• embargo

• tariff

• quota

• opportunity cost

Multiple Choice

Something that restricts trade with another country is called a(n)

• quota
• embargo
• import
• trade barrier 

Multiple Choice

A quota is a

• restricted trade with another country
• tax put on imported goods
• Limited number 
• profit made by a country over one year

Multiple Choice

  A tax on imported goods is a 

• tariff
• quota
• capital
• import 

Poll

Which natural trade barrier do you think would be the hardest for a country to navigate around?

• Mountains

• Lack of access to bodies of water

• Deserts

• Rainforests

Multiple Choice

SS6E2b What is a benefit of trade barriers? (PS)

• to protect domestic markets from foreign competition

• to block the importation of dangerous products

• to sanction an enemy nation

• all answers are correct

Multiple Choice

The United States and Cuba have not been trade partners for 50 years because of which trade barrier?

• tariff

• quota

• embargo

• none of the above

Multiple Choice

Adriana lives in Brazil.She is planning a trip to visit her sister,who recently moved to Mexico.She plans to take a taxi from the airport when she arrives sin Mexico.What must she do in order to pay for the taxi ?

• Get a job so that she can earn Mexican pesos

• Exchange her Brazilian reais for Mexican pesos

• Pay a travel tariff to the government of Mexico

• Pay a travel subsidy to the government of Mexico

Multiple Choice

SS6E2c Why does trade among Latin American countries require a system for exchanging currency between nations?

• The demand for products from Mexico, demands high exporting of specialized products from the maquiladoras, which under NAFTA, does not require currency exchange.

• Most people want to use American dollars to trade, so the need for currency exchanging is not required.

• Each has its own unique currency. For example, Mexico uses the peso, Brazil uses the real, and Cuba uses both the U.S. dollar and the peso; therefore without a method to convert currency, international trade would be impossible.

• Each country specializes in its own natural resources, so their is no need to convert money in order to trade.

Multiple Choice

Why is it important for a business to understand the currency exchange system?

• So they can make all money the same.

• So they can do business with only those countries that exchange at a higher rate.

• So they know the value of their money versus that of their trading partner so they can trade goods.

• So they know which bank to go to for exchanging the currency.

Multiple Choice

What countries are part of NAFTA?

• United States, Mexico, Congo

• United Kingdom, Mexico, Canada

• United States, Morocco, Canada

• United States, Mexico, Canada

Open Ended

Write 3 facts you learned in this lesson. Use complete sentences.

Multiple Choice

SS6E2d If members of NAFTA do not pay tariffs on goods traded among each other, then it can be said that members of NAFTA participate in what?

• GDP

• trade barriers

• embargo

• free trade

Multiple Choice

SS6E2d Besides the economic agreements, stated in the Preamble of NAFTA, the United States, Canada, and Mexico also agreed to do the following for workers:

• provide more job opportunities, improve working conditions, provide a better standard of living, and protect the rights of workers

• The governments would provide training to teach them to read and write, in order to increase the GDP of their country.

• provide education and healthcare for all citizens

• provide adequate shelter, food, and clean drinking water.

Multiple Choice

SS6E1d Global agreements like NAFTA exist to make trade more affordable between member nations. They achieve this by eliminating ___________ on imported goods.

• quota

• tariffs

• embargo

• borders

Multiple Choice

What does NAFTA stand for?

• North Atlantic Free Trade Agreement

• North American Free Trade Agreement

• North Alaska Free Trade Agreement

• North Amazon Free Trade Agreement

Multiple Choice

What reason would a American factory worker might not like NAFTA?

• American businesses might move to Mexico for cheaper labor costs, jobs lost in USA

• NAFTA products are cheaper for American consumers

• NAFTA removes tarriffs