International Trade 2

The exchange of goods and services by sale or barter driven by the need for resources.

• Fair Trade

• Globalization

• Trade

• Standard of Living

Sending goods to another country to sell.

• import

• export

Bringing goods in from another country to sell.

• import

• export

A policy in which a nation does not try to limit imports or exports by enacting tariffs (taxes on imports) or subsidies (money to assist an industry so prices can remain low).

• Free Trade

• Trade War

• Goods and Services

• Supply and Demand

A three-country trade agreement negotiated by the governments of Canada, Mexico, and the United States that took effect in 1989.

• The UN

• NAFTA

• NATO

• IMF

When the economy of two countries depend on each other, it's called:

• economic interdependence

• multinational cooperation

• isolationism

• outsourcing

When people trade how do both sides benefit?

• Countries can focus on producing specific goods from their natural resources instead of trying to create everything they need

• Countries can take advantage of each other making the international market more secure

• Countries are able to learn the weaknesses of other countries and exploit those for natural resources

• Countries are able to enter other countries with spies and foreign agents to undermine governments.

When determining comparative advantage one must determine 

• Opportunity cost
• Specialization
• Absolute Advantage
• Embargos 

If I am better at all types of production, I have the ______ in all forms of production.

• Comparative advantage
• Specialization
• Absolute advantage
• developed nation

This is a tax on imports that is used to increase price of foreign products and raise government revenue. 

• tariff
• quota
• subsidy
• embargo