Trade & Specialization

Why are most countries better off specializing in the production of particular goods, and then trading with other nations to obtain whatever else they need? 

• Transportation costs are lower than they were a century ago.
• Resources are not evenly distributed among countries.
• Greater investment of capital goods increases productivity.
• People have limited resources to satisfy unlimited wants. 

If I am better at all types of production, I have the ______ in all forms of production.

• Comparative advantage
• Specialization
• Absolute advantage
• developed nation

A trade agreement between Canada, Mexico, and the US

• NAFTA
• EU
• WTO
• ABC

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

A major cost of freer trade from poor nations is that they will

• get cheaper stuff
• they will get more stuff
• environmental damage
• greater variety of stuff

Infant industries can be helped in the world market by giving those industries a 

• subsidy
• quota
• embargo
• tariff

Any action a government uses to control trade between countries

• Trade barrier
• Voluntary trade
• Free trade
• Specialization

Products brought into a country

• Currency
• Exchange rate
• Export
• Import

An extra price or tax added onto imported products

• Embargo
• Tariff
• Quota
• Exchange rate