Free trade

Countries that specialise can:

• be more efficient

• reduce thier costs

• trade thier goods more easily

• all of these

What is the theory of absolute advantage?

• when one country has a greater population

• when one country can produce everything it needs

• when one country can produce a given product/service at a lower cost than another country

• when one country can produce a given product using the most resources

Which south american country specialises in producing coffee?

What is an ‘Exchange rate’

• the price of the goods abroad

• The price of one currency in terms of another

• the price of our currency and interest rates

• how much money enters the country

What is a tariff?

• a limit on what you can import

• the number of exports a country has

• the price of trade

• a tax on trading

Which organisation monitors trade and imposes sanctions on countries for unfair trade?

• World Trade Organisation

• World Export Monitors

• Trade Monitoring Organisation

• Trade Regulation Authority

Which is the only country in the EU beginning with the letter H?

How do countries benefit from being in the EU?

• free movement of people

• increased tariffs and quotas

• ability to trade freely

• reduced regulation

•The EU is the world’s largest ........market.

• trade

• free

• product

• single

Whuch country is NOT in the EU?

• France

• Norway

• Denmark

• Spain