Econ Review: Trade Barriers & Econ Types

1. Company XYZ produces cheese in Scotland and exports the cheese, which costs $100 per pound, to the United States. A 20% tax would require Company XYZ to pay the United States government $20 to export the cheese

• Tarriff

• Quota

• Embargo

2.In 2010, Mexico imposed a limit of 250,000 tons of sugar that could be imported into Mexico.

• Tariff

• Quota

• Embargo

3. In 1962, the United States prohibited all imports and exports to and from Cuba.

• Tariff

• Quota

• Embargo

5.In 2010, China announced that it would impose an import tax on American poultry of up 105.4 percent.

• Tariff

• Quota

• Embargo

To give its farmers an advantage, Nigeria has placed a high tax on imported rice. This is an example of which trade barrier.

• tariff

• quota

• embargo

• Null

Why is it important for nations to have a system to convert from one currency to another?

• Converting currency makes it possible to buy and sell goods between countries with different types of money.

• The dollar is the most valuable currency in the world.

• Converting currencies makes goods cost less so more people are likely to trade.

• It is not important because international trade can now occur with an exchange rate.

Why does specialization make trade between countries easier?

• There will always be a steady supply of goods on the market so trade is not needed.

• Countries can produce what they make best and trade with others for what they need.

• A country’s economy will never go through a difficult time if they specialize in a good.

• The competition between countries will not exist without interdependance.

Why did a number of the countries of the United Nations have an embargo on South Africa?

• South Africa refused to take part in international trade.

• They wanted South Africa to end its system of apartheid.

• Some were hoping for better oil deals from the South African government.

• They wanted South Africa to lower the world price of gold and diamonds.

Why would a country impose a tariff or quota on imported goods?

• to raise the price of imported goods and encourage people to buy local
• to raise the price of imported goods to help other countries make more money
• to be mean
• to help the country of the imported goods make a larger profit

Use the chart to answer the question.

Based on the information in the chart, which of these African nations would make the BEST trading partner for the United States?

• Angola

• Kenya

• South Africa

• Sudan