Global Trade - Chapter 10 (I2BUS)

If a country has a trade deficit with one country, it cannot have a trade surplus with another.

• True

• False

Since the 1970s, world trade has decreased due to nations becoming more self-sufficient.

• True

• False

Exchange rates change from day to day and country to country.

• True

• False

At the heart of most trade disputes is whether there should be limits on trade or whether trade should be unrestricted.

• True

• False

Trading goods and services allows countries to meet their individual wants and needs as well as to help their own economy.

• True

• False

To specialize means:

• to take specific courses in college

• to promote a particular feature

• to focus on a particular activity, area, or product

• to give preferential treatment

Another name for money is:

• exchange

• currency

• unit

• barter

Which of the following is not an example of world trade?

• The US buys pepper from India

• Australia buys wheat from the US

• The US sells airplanes to Russia

• A grocery store chain in North Carolina buys avocados from a farm in California

All of the following are reasons to restrict trade except:

• foreign competition can lower the demand for products made at home

• foreign companies' products may be inferior to those produced at home

• companies at home need to be produced from unfair foreign competition

• other countries may not have the same environmental or human rights standards

To reduce limits on trade:

• companies sell products illegally on the "black market"

• governments enact embargoes

• nations form foreign trade alliances

• nations reduce their comparative advantage