Unit 17: International trade

What is the absolute advantage?

• The fact that a country can produce a good or service at a lower opportunity cost than another country

• A cheaper copy of a product that is not marked with the producer's name

• Ability of a nation to produce goods more efficiently than any other nation.

• Selling unwanted goods very cheaply, usually in other countries

What is the implication of Education in Reading 1?

• Developing countries

• Protectionism

• Free trade

• Tariff

Tags

CCSS.RI. 9-10.2

CCSS.RI.11-12.2

CCSS.RL.11-12.2

CCSS.RL.8.2

CCSS.RL.9-10.2

Why trade still happens between 2 countries even if one country has absolute advantage in producing all products?

• Because 2 countries have different comparative advantages

• Because 2 countries want to generate tariff revenue

• Because that country doesn’t want to diversify its products

• None is correct

A tax imposed as a percentage based on the value of an imported good is called:

• Quota

• Tariff

• Product standard

• Subsidy

Which of the following answers is not an advantage of International trade?

• Dependence between countries

• Harmonious trade relations

• Optimal distribution

• Expanding market

What can make countries refuse to trade?

• Creating a good relationships to protect national securities

• Creating job opportunities

• Lack of resources to develop economic (labor, technology, natural resources and so forth)

• Protecting their infant industries

How does free trade affect a country's economy?

• Increase competition and choice for consumers

• Increase the risk of losing jobs for workers

• Increase income for all social classes

• Increased dependence and power of multinational corporations

What measures do countries often apply to promote free trade?

• Implement high import taxes to protect domestic products

• Sign free trade agreements with other countries

• Restrict imports to protect domestic products and services

• Strengthen management and control of import and export to reduce competition

What is Incoterms?

• Is a set of rules that systematize trade practices.

• Is the international language for freight forwarding and transportation of goods in foreign trade.

• Is an important tool to accelerate the negotiation of foreign trade contracts.

• All of the above

Are Incoterms mandatory?

• Yes

• No