Section 4: SS7E8

What does specialization refer to in the context of international trade?

• Trading with as many partners as possible

• Focusing on a wide range of products and services

• Focusing on a narrow range of products/services that can be produced most efficiently and cost-effectively

• Imposing trade barriers on foreign goods

What is voluntary trade?

• Trade where only one partner benefits

• Trade under the influence of trade barriers

• Trade in which both partners freely agree to and benefit from the exchange of goods/services

• Trade that occurs without the use of currency

What is a tariff?

• A limit on imported goods

• A trade barrier which places a tax on imported goods

• A complete block on trade with another nation

• A refusal to purchase goods from a specific company

What is an embargo?

• A tax on imported goods

• A limit on the amount of goods that can be imported

• A trade barrier that blocks all trade with another nation

• The conversion of one nation's currency into another's

What is the definition of currency exchange?

• The tax placed on imported goods

• The limit on the amount of goods that can be imported

• The block on all trade with another nation

• Converting one nation’s money into an equivalent value/quantity of another’s

What does the exchange rate represent?

• The tax rate on imported goods

• The limit on the quantity of imported goods

• The approximate value of one nation’s currency in terms of another’s

• The total value of a nation's exports