Specialization and Trade Barriers

The total dollar amount of all final goods and services produced in a country in a year.

• Gross Domestic Product (GDP)

• Gross Domestic Product per Capita

• Standard of Living

• Exports

A tax on imports

• tariff

• import tax

• supply

• embargo

A limit to the number of imports that may enter a country

• tariff

• embargo

• demand

• quota

A government order stopping trade with another country

• tariff

• embargo

• quota

Which is an example of a quota?

• The U.S. stops trade with China.

• The U.S. limits the amount of foreign cars brought into our country.

• The U.S. pays a high tax on BMW cars brought into the country.

A tariff....

• Encourages people to buy goods made from their country.
• Increases trade between other countries.
• Stops trade completely.
• Only placed to encourage democracy.

When a country or individual produces a single product that they are good at producing.

• diversification
• specialization
• entrepreneur 
• human capital

The price of one nation’s currency in terms of another nation’s currency

• tariff

• embargo

• quota

• exchange rate

What does this picture represent best?

• Specialization

• Tariff

• Embargo

• Quota

You are on a trip to Germany. You swap your dollars for Euros. Why exchange currency?

• To buy or sell goods in Germany; they won't take dollars.

• Because dollars are worth the same as other currency

• Because Euros are a great souvenir.