International Trade

Export means

• buying goods from another country
• selling goods to another country
• only making one kind of product

Bringing goods in from another country to sell.

• import

• export

What is trade between two countries called?

• friendship

• a community

• a region

• international trade

Baseball bats made in Kentucky are used by baseball players in Japan.

• import
• export

Diamonds found in South Africa are used to make rings in Maine.

• import
• export

What is a trade deficit?

• When a country imports more than it exports

• When a country exports more than it imports

• When a country's savings rate is high

• When a country has no international trade

The United States EXPORTS

• Kangaroos
• Airplanes
• Cocoa Beans

When American companies export goods and services, they are making money and employing people.

• True

• False

Comparative advantage explains why a nation will benefit from trade when:

• it exports more than it imports.

• its trading partners are experiencing offsetting losses.

• it exports goods for which it is a high-opportunity cost producer, while importing those for which it is a low-opportunity cost producer.

• it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.

Which statements are true about international trade?

• Restrictions on international trade are beneficial to American consumers

• International trade helps foster positive relationships with other nations.

• International trade makes a greater variety of products available to consumers.

• Consumers are not directly affected when nations place trade barriers on one another