Trade and Comparative Advantage

Which type of country is most dependent on a ground transportation network for international trade?

• Landlocked

• Coastal

• Island

• Tropical

Which statement best explains why nations must trade?

• All nations belong to free trade agreements.

• All nations seek out new production methods.

• No nation has all necessary resources.

• No nation can employ all of its laborers.

Which country has many resources, but is unable to use them because of climate and other problems?

• United States

• Russia

• Japan

• Germany

Which factor determines a country's ability to exchange goods?

• Educational achievement

• Access to communication networks

• Specialization in certain goods and services

• Standards of living

Which country has a diversified economy, abundant natural resources, and specialized industries?

• Switzerland

• Russia

• Japan

• United States

The United States imports oil from Saudi Arabia. Japan exports cars to the United States. The United States sells high technology to Saudi Arabia. Which of the following is a valid conclusion that can be drawn from these statements?

• Most nations of the world specialize in one export.

• The nations of the world are economically interdependent.

• The U.S. is the world’s leading exporter.

• Saudi Arabia controls most of the world’s natural resources.

Goods and services produced in other countries and sold at home

• Imports
• Exports
• Specialization
• Globalization 

Good and services produced at home and sold in other countries

• Imports
• Exports
• Specialization
• Globalization

A focus on developing only certain skills or producing only certain goods/services

• Imports
• Exports
• Specialization
• Globalization

The total dollar amount of all final goods and services produced in a country in a year divided by the country's population.

• Gross Domestic Product (GDP)

• Gross Domestic Product per Capita

• Standard of Living

• Scarcity