If the country of Columbia has an optimal climate, low labor costs and the reputation for the world's best tasting coffee, it has a ______ in coffee production.

• Comparative advantage

• Specialization

• Absolute advantage

• Trade Barrier

A trade agreement between 27 countries of with the same currency and open trade between those nations.

• NAFTA

• EU

• WTO

• ABC

All of the following are terms used to describe limitations on trade except?

• Trade Barriers

• Sanctions

• Trade restrictions

• WTO

This trade barrier limits the number of products that can be brought into a country.

• Tariff

• Quota

• Embargo

• Subsidy

This is a tax on imports that is used to increase price of foreign products and raise government revenue.

• tariff

• quota

• subsidy

• embargo

The main justification for an embargo on foreign goods is to

• Punish a nation

• raise revenue

• Increase consumption or the good

Developed nations have all of the following except

• better education

• high levels of technology

• better health

• low productivity

Underdeveloped nations tend to trade what type of goods

• Low skill products

• High tech goods

• finished products

• High skill products

What is PROTECTIONISM?

• economic policy of restricting imports from other countries

• economic policy of restricting exports from other countries

• economic policy of imports from other countries

• economic policy encouraging exports from other countries

INTERNATIONAL TRADE is...

• the exchange of goods and services within state borders

• the exchange of capital, goods, and services within a country's borders

• the exchange of capital, goods, and services among nations

• designed to discourage the exchange of goods across international borders or territories