Why do countries specialize?

• Because they already have everything they need

• To fight Godzilla

• So they can be more important

• Because no country has all the resources it needs

What are two advantages to specialization?

• More homework and less free time

• Better cars and more airplanes

• Lower costs and faster production

• More money and fewer resources

Which trade barrier is similar to a "tax"?

• Embargos

• Tariffs

• Quotas

• Homework

Why might a government set a quota on foreign goods?

• To protect their businesses from outside competition

• To help with house chores

• To increase healthy competition

• To help other countries sell more stuff

Tariff, Quota or Embargo? The European Union's ban on trade with Iran.

• Embargo

• Tariff

• Quota

• A Happy Meal with a toy

Tariff, Quota or Embargo? The UK taxes all wood coming into the UK from Canada.

• Embargo

• Tariff

• Quota

• A new PS6

Tariff, Quota or Embargo? The Russians only allow 100 million pounds of peanuts a year

• Embargo

• Tariff

• Quota

• A basket ball court

Tariff, Quota or Embargo? In 1963, US President Kennedy prohibited all trade with Cuba

• Embargo

• Tariff

• Quota

• The Buddy System

Tariff, Quota or Embargo? Germany limits the amount of wool suits that Ireland can ship to them

• Embargo

• Tariff

• Quota

• Hurricane Season

Why does international trade require a system for exchanging currency?

• To make trade more complicated

• Because other countries don't believe in America

• Because goods and services in other countries are strange

• Because different countries have different types of money