global trade x

An import quota is meant to ______ the number of a particular good brought into the country. 

• affect
• benefit
• restrict
• increase 

One _____ of free trade is that competition usually results in better products at lower prices. 

• positive
• negative 

If a country can produce a certain good at a lower opportunity cost than another country it has the...

• absolute advantage 
• competition
• specialization 
• comparative advantage

Which of the following are benefits of international trade?

• acquiring goods that you do not produce yourself
• the ability to sell your goods to others for a profit
• the ability to specialize production of certain goods in your country
• all of the above are benefits 

Nations with low industrial development and low standards of living are known as: 

• developed nations 
• 3rd world nations
• developing nations 
• western nations 

Countries get__________from the environment.

• natural resources
• manufactured goods

_____________ are produced in factories.

• natural resources
• manufactured goods

Why do countries trade with each other?

• to stay friendly
• to get things they want and need
• to pay for transportation
• to make other countries rich

Why does the United States sell wheat and buy bananas?

• The United States grows a lot of wheat but not many bananas
• People like bananas more than they like wheat
• Wheat costs more than bananas
• Bananas cost more that wheat

Global trade often takes jobs away from richer countries.  This is because poorer countries have

• higher prices
• better quality
• lower pay for workers
• more natural resources