Trade Pt 1

What is trade?

• The exchange of goods and services

• The production of goods and services

• The consumption of goods and services

• The storage of goods and services

Why do countries engage in trade?

• To distribute resources evenly

• To specialize in certain goods and services

• To avoid economic interdependence

• To increase natural resources

What is an import?

• Something a country brings in from another country

• Something a country exports to another country

• A service provided within a country

• A natural resource found in abundance

What is the result of voluntary trade?

• Both parties are better off

• One party benefits while the other loses

• No change in economic status

• Increased trade barriers

What is the North American Free Trade Agreement (NAFTA)?

• A free trade agreement between the US, Mexico, and Canada

• A trade restriction policy

• An environmental protection agreement

• A labor standards agreement

What replaced NAFTA in 2018?

• United States-Mexico-Canada Agreement (USMCA)

• European Union Trade Agreement

• Asia-Pacific Trade Agreement

• Global Trade Partnership

What is the impact of free trade on global wealth?

• It creates the most overall wealth

• It reduces global wealth

• It has no impact on global wealth

• It only benefits larger countries