Comparative Advantage

Which country specializes in a primary economic activity?

• Jamaica

• Belgium

• Chad

• Liechtenstein

Which type of country is most dependent on a ground transportation network for international trade?

• Landlocked

• Coastal

• Island

• Tropical

Which phrase best completes this diagram?

• Manual labor

• Limited communication

• Diverse economy

• Specialized production

Which statement best explains why nations must trade?

• All nations belong to free trade agreements.

• All nations seek out new production methods.

• No nation has all necessary resources.

• No nation can employ all of its laborers.

One of the factors that contributed to Japan’s industrial growth during much of the 20th century was that it benefited from having —

• deposits of iron ore

• sources of investment capital

• supplies of fossil fuels

• areas of fertile farmland

Which country has many resources, but is unable to use them because of climate and other problems?

• United States

• Russia

• Japan

• Germany

Countries will export goods and services that they can produce at lower costs. This is called —

• oligarchy

• monopoly

• comparative advantage

• capitalism

Which of the following is NOT an effect of comparative advantage on international trade?

• Nations monitor the percentage of their urban population.

• It makes efficient use of human resources.

• Nations produce goods and services they can sell for a profit.

• It influences the development of a variety of industries.

Which factor determines a country's ability to exchange goods?

• Educational achievement

• Access to communication networks

• Specialization in certain goods and services

• Standards of living

Because the Earth’s resources are not evenly distributed across its surface —

• global economic interdependence is declining.

• most countries have the resources they need to survive and grow.

• countries must engage in trade to get the goods they need to survive.

• most people in the world are engaged in tertiary economic activities.