Voluntary Trade

What is voluntary trade?

• when a list is passed around at a meeting and person agrees to trade on a certain day

• when one country volunteers another country to trade

• when two countries agree to trade with each other and both profit from the trade

When something limits or stops trade with another country, it is called...

• entrepreneur

• trade barrier

• economic continuum

Why do most countries choose to specialize in producing certain goods and not all the goods their citizens need?

• Countries cannot produce all of the goods their citizens need but can efficiently produce certain goods

• Countries are lazy and don't want to do the extra work

• Citizens do not like when their countries produce all of the goods

A company in Brazil needs to know the following information: 1 US Dollar=5.14 Brazilian Reals. Why does the company need this information?

• The company wants to stop using Brazilian Reals.

• The company wants to trade with an American company and needs to know what the currency is worth .

• The company ran out of American dollars.

An agreement between Canada, United States, and Mexico to create a free trade zone is known as

• Environmental Protection Agency (EPA)

• Embargo

• North American Free Trade Agreement (NAFTA)