International Trade Qz 18.1-18.2

What is the goal of international trade?

• Cultural exchange

• Specialization and economic interdependence

• Political alliances

• Technological advancements

Why do countries specialize?

• To increase their political power

• To improve technology transfer

• To trade for things other countries produce

• To reduce their economic growth

What does absolute advantage mean in economic terms?

• When a nation can produce ALL goods more efficiently than other countries

• When a nation produces A good or SOME goods with greater efficiency than other countries

• When a nation has no competition in producing a good

• When a nation's goods are preferred over others globally

Which concept involves a country producing goods that have the least amount of trade-offs?

• Absolute advantage

• Economic efficiency

• Comparative advantage

• Trade maximization

If goods are bought from China, in which currency are the payments typically made?

• Euro

• U.S. Dollar

• Yuan

• Indian Rupee

Why does the value of currency matter in international trade?

• Because it affects the cost of goods in different countries

• Because it determines the speed of delivery

• Because it influences local employment rates

• Because it changes the color of the money

What does "Balance of Trade" refer to?

• The total amount of money a country earns from tourism.

• The difference between what a country exports and what it imports.

• The balance of economic growth between two countries.

• The amount of trade agreements a country has.

What is an "import"?

• A product sold to other countries.

• A product manufactured within the country.

• A product bought from another country.

• A service offered internationally.

What is an "export"?

• A product or service used only domestically.

• A product bought from another country.

• A product or service sold to another country.

• A type of trade agreement.

What does it mean when a country has a trade deficit?

• A) It exports more than it imports from a trading partner

• B) It imports the same amount as it exports

• C) It imports more than it exports from a trading partner

• D) None of the above