Specialization and Global Trade

Which two actions will a country most likely take when it has plenty of iron ore, but it needs aluminum?

• It will specialize in steel production and forgo for aluminum.

• it will specialize in steel production and trade for aluminum.

• it will decrease steel production and bargain for aluminum.

• it will outsource steel production and negotiate for aluminum.

Which reality leads countries to specialize in producing a limited number of goods or services?

• • No country has unlimited resources, so countries need to buy the resources they lack.

• • Some countries have unlimited resources, which leads to thriving trade.

• • Some countries have unlimited resources, and other countries must specialize to survive.

• • No country has unlimited resources, so countries must be efficient with those resources that are plentiful.

Match the term with its definition.

• goods and services bought and brought in

• specialize

• efficient use of the productive resource

• import

• goods and services sold and shipped to o

• exports

• when countries or regions depend upon on

• Trading Partners

• countries and regions that trade with ea

• interdependent

Which two specializations show the greatest potential in Liberia?
(Choose 2)

• coffee

• diamonds

• forest production

• hydroelectric power

• Iron ore

Reorder the following: Rank the countries from most likely (left) to least likely (right) to specialize in creating new high-tech industries.

• Japan

• Malta

• Egypt

• South Korea

Complete the cause and effect diagram to answer the question.
Determine the process of specialization and global trade, and place each statement in its correct box.

a

b

c

Businesses from other countries or regio

People have access to a wider var

Countries and regions have limited resou

Why would a country choose to import a resource that it already has?
(Choose 2)

• It may want to produce more than the supply allows

• it might want to support the economy of its trading partner.

• it might hope the other country will buy its finished products.

• It might be cheaper to buy the product from another country than to produce it.

Which pair of countries is likely to become trading partners?

• China and Russia

• China and Japan

• Indonesia and Japan

• China and Malaysia