SS7E5: Voluntary Trade, Trade Barriers, Currency Exchange, and OPEC in SW Asia

What is voluntary trade?

• Only happens when Europe trades with the United States and Canada

• Happens when different countries choose to exchange goods with one another

• Happens when trade barriers prevent trading with China, India and Japan

• Happens when OPEC nations place an embargo with the United States and Canada

Why do countries specialize?

• Because they like to buy goods only made in the European Union by French workers

• Because they like to make a variety of items fairly well and not put all of their efforts in to what they do best

• Because countries cannot produce all of the goods/services they need so they focus on what they do best

• Because they do not want to trade with other nations around the world.

What do countries such as Iran, Iraq, Kuwait, and Saudi Arabia specialize in?

• diamonds

• gold

• farming

• oil

Many Middle East countries export oil, but import or buy items such as....

• food, medicine, and raw materials

• oil, uranium, and coal

• cobalt, gold, and silver

• iron ore, oil, and uranium

Import means to....

• buy or have goods shipped into a country

• sell or have good shipped out of a country

Export means to....

• sell or have goods shipped out of a country to another country

• buy or have goods shipped into a country from another country

One of the industries Israel specializes in is...

• Diamond polishing/cutting

• petroleum exports

• selling cotton textiles

• making clothing

Landlocked nations, or those with mountains, and rainforests--all of these are examples of...

• embargoes

• quotas

• tariffs

• natural trade barriers

To completely stop trade with another country is an example of what type of political trade barrier?

• quota

• embargo

• tariffs

• tax

To impose a tax on imported goods (those coming from another nation) is an example of which type of political trade barrier?

• embargo

• quota

• tariff

• policy