Voluntary Trade Europe

Why do countries Specialize?

• A country specializes because they think they are the only country to trade with.

• It increases trade because a country can get what it needs at the lowest cost when produced by someone who specializes in that item.

• It decreases trade because a country can get what it needs at the highest cost when produced by someone who specializes in that item.

What are two advantages to Specialization?

• Getting Items at the lowest cost

• Decrease in Trade

• Increase in Trade

• Getting items at the highest cost

Which type of "barrier to trade" is similar to the economic term "TAX"?

• Trade

• Embargo

• Quota

• Tariff

Why might a government set a quota on foreign goods?

• The government will never set a quota

• They are used to prevent to much of a good from entering a country

• Quotas limits the amount of goods available, which causes prices to rise

• They help to protect a country's own businesses from foreign competition

The European Union’s ban on trade with Iran.

• Tariff

• Quota

• Embargo

• Trade

The UK taxes all wood coming into the UK from Canada.

• Embargo

• Quota

• Tariff

• Federal Assembly

The Russian president decreases the amount of imported peanuts allowed into the country by 100 million pounds per year.

• Tariff

• Quota

• Embargo

• State Duma

In 1963, US President Kennedy prohibited all trade with Cuba.

• Currency Exchange

• Voluntary Trade

• Tariff

• Embargo

Germany limits the amount of wool suits that Ireland can ship to them.

• Quota

• Tariff

• Embargo

• Whateverrrrrrrrr

Why does international trade require a system for exchanging currency?

• Because currency/money makes the world go round

• Because currency/money can decrease trade in a country

• Because countries have different forms of currency/money