Latin America Specialization SS6E3

What are TWO of the primary goals of the North American Free Trade Agreement (NAFTA)?

• encouraging economic growth in Canada, Mexico, and the United States

• reducing barriers to immigration between Canada, Mexico, and the United States

• creating a mutual defense pact between Canada, Mexico, and the United States

• reducing industrial pollution within Canada, Mexico, and the United States

• eliminating barriers to trade between Canada, Mexico, and the United States

Which statement about trade barriers is correct?

• Tariffs and embargoes are imposed to encourage consumers to purchase more goods.

• Quotas are imposed to encourage producers to improve the quality of goods.

• Tariffs are imposed to encourage consumers to purchase domestic goods.

• Quotas and embargoes are imposed to encourage international trade.

What conclusion can be drawn based on this information?

• To improve trade with Brazil, Mexico should specialize in oil production.

• To improve trade with Mexico, Argentina should specialize in corn production.

• To improve trade with Mexico, Brazil should specialize in machinery production.

• To improve trade with Brazil, Argentina should specialize in soybean production.

Why do countries trade with each other?

• Most countries cannot efficiently produce everything their populations need.

• Most countries produce a surplus of goods that would be wasted otherwise.

• Most countries trade for foreign currency to promote economic growth.

• Most countries trade with other countries in order to make alliances.

What factor is used to classify economies as market, command, or mixed?

• the number of consumers in the economy

• the number of producers in the economy

• the amount of government involvement in the economy

• the abundance of natural resources in the economy

What factor is used to classify economies as market, command, or mixed?

• the number of consumers in the economy

• the number of producers in the economy

• the amount of government involvement in the economy

• the abundance of natural resources in the economy

In which type of economy does the government control the factors of production?

• mixed economy

• traditional economy

• command economy

• market economy

Why do countries need to have a system for exchanging currency with other nations?

• so they can have a uniform value of currency so they can identify what the value of goods are

• so that they can know which countries' currency have the greatest value so they can buy goods at the lowest cost

• to have an international bank that converts the money of each country so countries can buy and sell goods

• to know the value of their money compared to the value of other countries' money so they can trade goods

How do quotas help make domestic industries more competitive?

• It put limits on the number of goods imported

• It puts a limit on the number of goods exported

• it settles price that the foreign goods are sold

• it settles the price that the domestic goods are sold

The United States embargoed trade with Cuba. What did the embargo mean?

• It meant that trade between them became illegal

• The U. S. and Cuba became closer

• Cubans have to pay to trade with the U. S.

• Both countries' economies began to suffer