SS6E2 Specialization and Trade in Latin America

Why is it important for nations to have a system to convert from one currency to another?

• Converting currency makes it possible to buy and sell goods between countries with different types of money.

• The dollar is the most valuable currency in the world.

• Converting currencies makes goods cost less so more people are likely to trade.

• It is not important because international trade can now occur with an exchange rate.

Why does specialization make trade between countries easier?

• There will always be a steady supply of goods on the market so trade is not needed.

• Countries can produce what they make best and trade with others for what they need.

• A country’s economy will never go through a difficult time if they specialize in a good.

• The competition between countries will not exist without interdependance.

Tax on imported goods is ___________

• a tariff
• a quota
• an embargo
• the reason we can't have nice things

A limit on imported goods is  _____________________ 

• a tariff
• a quota
• an embargo
• a lemonade stand

When we completely stop trading with another country, it's called ____________________

• a tariff
• a quota
• an embargo
• a hissy fit

Why would a country impose a tariff or quota on imported goods?

• to raise the price of imported goods and encourage people to buy local
• to raise the price of imported goods to help other countries make more money
• to be mean
• to help the country of the imported goods make a larger profit

Specialization results in a country or region producing a _____________ variety of goods and services.

• limited

• greater

Why Do Latin American Countries Place Tariffs On Imported Goods?

• Because They Need Money

• To Limit Foreign Goods

• To Stop Embargoes

• To Make Sure The Carrier Has Money

In order to help Russian farmers sell more food, some people want to put a tax on the food imported from other countries. This is an example of a(n)

• quota

• tariff

• embargo

How much one currency is worth when compared to another is known as a (n)

• tariff

• exchange rate

• quota

• specialization