Globalization Review

What is a Tariff?

• A tax on imported goods

• A price marked on goods

• Profit made from manufactured goods

When we talk about different nations around the world sharing more goods, ideas, cultures and systems of government, we are talking about ____________________________

• neighbors
• globalization
• realization
• sensation

Which of the following statements best describes trade between two nations?

• It is legally required

• It is mutually beneficial

• It avoids specialization

• It involves low cost for both nations

If a nation chooses to specialize and trade, which of the following situations could be expected to occur?

• Decreased resource availability

• Fewer domestic jobs

• Lower prices

• Decreased quantity and quality of goods

What is the primary purpose NAFTA?

• To reduce trade barriers among the US, Canada, and Mexico
• To reduce trade barriers among Central America and Mexico
• To reduce trade barriers among Brazil and Mexico
• To encourage free trade between the US, Europe, and Canada

refers to the unrestricted flow of goods, services, and productive resources between countries

• free trade

• balance of trade

• trade surplus

• trade deficit

The use of trade barriers to protect a nation’s industries from foreign competition

• Balance of trade
• NAFTA
• Quotas
• Protectionism 

This organization was created to promote trade and economic growth by lowering taxes and removing limits on some types of trade.

• North American Free Trade Agreement (NAFTA)

• North Atlantic Treaty Organization (NATO)

• United Nations (UN)

• World Trade Organization (WTO)

Gross Domestic Product (GDP)

• when a business transfers work overseas, usually from a developed country to developing countries

• when countries only produce what they are best at

• when one country produces a good at a lower opportunity cost than another

• the dollar value of the final goods and services products produced in a country’s borders in a given year

Quota

• policy that promotes elimination of trade barriers, such as tariffs and quotas

• goods used to make a final product

• a limit on the amount of goods that one country can import from another

• when countries only produce what they are best at