Global Trade

Any activity which slows or outright blocks the free exchange of goods and services between nations.

• Voluntary Trade
• Specialization
• Currency Exchange
• Trade Barrier

Example: The U.S. president increased the amount of imported peanuts allowed into the country by 100 million pounds per year.

• Quota
• Tariff
• Embargo

Makes imported goods more expensive

• Quota

• Tariff

• Embargo

What is the primary purpose NAFTA?

• To reduce trade barriers among the US, Canada, and Mexico
• To reduce trade barriers among Central America and Mexico
• To reduce trade barriers among Brazil and Mexico
• To encourage free trade between the US, Europe, and Canada

Makes imported goods more expensive

• Quota

• Tariff

• Embargo

NAFTA caused trade barriers to be reduced resulting in-

• surge in immigration
• decline in factory production
• decrease in price of goods
• rise in taxes on products

One argument against NAFTA

• Lower prices of goods

• Outsources jobs to outside countries

• Increase competition

• Economic growth

the concept of free trade means 

• the reduction of tariffs and subsidies in countries so they are no longer as large as they were in the past 
• the removal of all trade barriers both direct and indirect to facilitate more efficient use of scarce resources 
• the free movement of all goods, service , ideas, people, money and technology across the globe 
• trade which is based on the cheapest prices due to the benefits of perfect competition and economies of scale 

the main benefits of free trade include 

• peace , better choice , prices and quality 
• less imports because they cant penetrate strong markets 
• the sharing of the world s resources 
• greater benefits for less developed economies as they can trade more 

North American Free Trade Agreement (NAFTA) promotes the movement of goods between participating countries without restrictive:

• A  imports or exports.  
• B imports and trade. 
• C tariffs or quotas. 
• D domestic and offshore.