Latin America's Specialization, Trade Barriers, Currency Exchange, & NAFTA

Why do countries trade goods with each other?

• To keep all resources for themselves
• Because no country has all the resources it needs
• To limit the availability of goods
• To increase the cost of items produced

Why is specialization important for countries?

• It makes items more expensive
• It leads to higher production costs
• It helps countries focus on what they do best
• It decreases trade opportunities

Which country specializes in automobile production?

• Brazil
• Mexico
• Venezuela
• Cuba

What is a natural trade barrier?

• River
• Desert
• Airport
• Ocean

What is the purpose of tariffs?

• To decrease prices of imported goods
• To increase consumer choices
• To place a tax on exported goods
• To make imported goods more expensive

What do embargoes do?

• Encourage trade with other countries
• Ban trade with another country
• Decrease taxes on imports
• Increase international partnerships

What is currency used for?

• Making phone calls
• Buying goods and services
• Watching movies
• Exercising

What does the exchange rate determine?

• The value of a nation\'s currency in relation to another
• The price of oil
• The number of banks in a country
• The cost of living

What agreement was signed by Canada, Mexico, and the United States in 1994?

• European Union
• South American Free Trade Agreement
• North American Free Trade Agreement
• Asian Trade Alliance

What is one key function of NAFTA?

• Increasing tariffs
• Setting up more trade barriers
• Establishing environmental regulations
• Decreasing cross-border investments