Review for Standard SS6E5

What is one reason for people to exchange currency?

• Because countries have different currencies that are valued differently.

• Most people want to use the Brazilian real to trade.

• They don't because people can use any currency at any business in the world.

What makes it easier for people and businesses from different countries to trade with each other?

• high tariff rates

• the use of embargoes

• investment in capital goods

• a currency exchange system

How has the North American Free Trade Agreement increased trade between the nations of Canada, Mexico, and the United States?

• by reducing tariffs

• by imposing quotas

• by establishing emabargoes

• by prohibiting foreign investment

Under the Clinton administration, the United States entered into a trade agreement with Mexico and Canada. What was the purpose of this agreement?

• to encourage the production of oil resources in North America

• to protect the domestic agriculture industry in the United States

• to reduce economic barriers to trade between the three countries

• to promote the nationalization of major industries in the countries

Which term is used to refer to a country focusing on producing a relatively small number of goods or services based on what the country can produce most efficiently?

• opportunity cost

• competition

• specialization

• entrepreneurship

When the United States placed a ban on importing and exporting goods to Cuba after the Cuban Missile Crisis, this is an example of which of the following?

• Tariff

• Embargo

• Quota

• Limited

Which of the following is true of free trade between Canada and the United States?

• It discourages the countries from producing goods their citizens need, like food.

• It is only beneficial to the wealthiest of the two countries, the United States.

• It allows each country to specialize in the production of certain goods.

• It benefits all workers and consumers in each of the two countries.

In 2010, Mexico placed a limit on the amount of potatoes it will import.

• Tariff

• Quota

• Embargo

Canada limited the amount of corn that it will import to 100,000 tons this year.

• Tariff

• Quota

• Embargo

The United States does not trade with North Korea because of their nuclear weapons.

• Tariff

• Quota

• Embargo