AKS 38: Trade & Specialization in Africa

Emphasizing which economic practice MOST helps African economies benefit from international trade?

• specialization

• generalization

• raising interest rates

• lowering inflation rates

Why is it important for nations to economically specialize?

• Specialization limits the effects of globalization.

• Specialized economies use resources more efficiently.

• Specialized nations can profit from otherwise worthless goods.

• Specialization limits foreign influence over a nation’s economy.

Based on the information, which of the following BEST explains how nations attempted to force South Africa to abolish apartheid?

• Many nations imposed tariffs against South Africa during apartheid.

• Many nations imposed economic sanctions against South Africa during apartheid.

• Many nations used natural trade barriers to pressure South Africa during apartheid.

• Many nations provided economic subsidies in order to repair relations with South Africa during apartheid.

What did the development of regional trade associations in Africa represent?

• an effort to deregulate the regional African economy

• an effort to encourage foreign investment in African nations

• an effort to remove barriers to trade between African nations

• an effort to expand trade between Africa and other world regions

What is this an example of?

• embargo

• quota

• subsidy

• tariff

What is this an example of?

• embargo

• quota

• subsidy

• tariff

What is this an example of?

• embargo

• quota

• subsidy

• tariff

Which of the following will have the MOST influence on Mr. Obasi’s decision, provided there are no trade barriers?

• the cost of raw materials and tariffs

• the cost of raw materials and sanctions

• baseline cost of the item and trade laws

• baseline cost of the item and exchange rate

Which of the following explains why international trade requires a system for exchanging currencies between nations?

• without the ability to exchange currencies, dictatorships would be overthrown

• without the ability to exchange currencies, all countries would be democracies

• without the ability to exchange currencies, buyers and sellers could not properly pay each other

• without the ability to exchange currencies, more countries would follow command systems than market systems

With which of the following nations would it be easiest to exchange currency?

• a nation in the middle of a civil conflict

• a nation that has recently become democratic

• a nation whose government is composed of competing ethnic groups

• a nation that has operated under the same government for thirty years