9 Economics - Trade

What is a tariff?

• A government order to stop trade
• A limit placed on imports
• A tax placed on imports

A tariff....

• Encourages people to buy goods made in their country

• Increases trade between other countries

• Stops trade completely

• Only placed to encourage democracy

refers to the unrestricted flow of goods, services, and productive resources between countries

• free trade

• balance of trade

• trade surplus

• trade deficit

What is the definition of 'International Trade'?

• The buying and selling of goods and services between different countries

• Exchanging goods and services within a country

• The free movement of people across countries

Select 2 reasons why trade may be beneficial:

• increases the total amount of goods and services consumers can access

• greater variety of goods available

• proximity (distance) to trading partners

• amount of natural resources

Select 2 reasons why trade may be beneficial:

• imported products may be of higher quality than domestic products

• imported products may be significantly cheaper than similar domestic products

• how technologically advanced a country is

• political & cultural factors influence what is traded

Select 2 reasons why trade may be beneficial:

• using cheaper import products helps local business keep costs down and make profits 

• domestic industries which import increase jobs available

• how technologically advanced a country is

• political & cultural factors influence what is traded

Identify 2 factors that influence what a country trades:

• increases the total amount of goods and services consumers can access

• greater variety of goods available

• proximity (distance) to trading partners

• amount of natural resources

Identify 2 factors that influence what a country trades:

• using cheaper import products helps local business keep costs down and make profits 

• domestic industries which import increase jobs available

• how technologically advanced a country is

• political & cultural factors influence what is traded

____ ____ is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners

(a)