Global Trade

Which of the following would be an example of globalization?

• shirts are made in Vietnam

• a scientist reads an article written in English

• an American student buys pencils made in the U.S.

• A shirt made in Malaysia is sold in Canada and the U.S.

How do multinational companies keep their costs low?

• the build factories far away from raw materials

• they manufacture their products in only one country

• they build factories in countries where labor is inexpensive

• they assemble their final product in many different countries

How do governments protect their national industries?

• by encouraging free trade practices

• by lowering quotas on imported goods

• by placing embargos on foreign countries

• by creating trade barriers to decrease competition

Which of the following has helped increase economic globalization? (two answers)

• cargo ships and airplanes

• warfare

• telecommunications and the internet

• communism

• trade embargos

Match the following trade barriers with their description

• a number or monetary value for the amount of goods that can be imported or exported

• Embargo

• a fee or tax that a country charges on imports or exports

• Tariff

• a limit on trade often for political reasons

• Quota

Match the following organizations with their actions

• offers emergency loans to countries with unstable economies

• World Trade Organization (WTO)

• works with nations to decrease embargos, taxes, and quotas

• the World Bank

• provides loans for large projects, like building schools, in developing countries

• International Monetary Fund (IMF)

A country decides that they will only allow a set amount of a product to be imported into their country. Which type of trade barrier is this?

A country adds a tax to clothing which makes imported t-shirts cost more than ones produced in the country. Which type of trade barrier is this?

A country does not approve of human rights abuses happening in another country so they stop importing and exporting goods to that country. Which type of trade barrier is this?

Japanese auto firms agree to limits set in Washington D.C., on the number of Japanese cars that may be sold in the U.S.

• Embargo

• Quota

• Tarriff