Europe Specialization, Currency & Trade

Front

Which of these must be present for international trade to be successful? Options: a system for exchanging currencies, a system for imposing protective tariffs, a system for securing borders, a system for raising taxes

Back

a system for exchanging currencies

Front

How does voluntary trade help the economy?

Back

It encourages specialization which means more profit.

Front

Why does specialization make trade between countries easier?

Back

Countries can produce what they make best and trade with others for what they need.

Front

Why is it important for nations to have a system to convert from one currency to another?

Back

Makes it possible to trade between countries with different types of money.

Front

This country's main economic sectors are finance and banking industries, manufacturing and construction. Which country is it?

Back

United Kingdom

Front

Scenario: The US refuses to trade with any countries that support terrorism. What trade barrier is this?

Back

Embargo

Front

Tariffs and quotas are alike because they both __________________.

Back

let trade continue, but restrict or limit it between countries.

Front

A tariff....

Back

Encourages people to buy goods made from their country.

Front

In 2011, the United States Department of Agriculture increased its annual sugar-import limit to 1.6 million tons for the year. What is this limit called? (Options: Tariff, Embargo, Quota)

Back

Quota

Front

How could a high tariff on imported grain help the people in the country charging the tariff?

Back

Local farmers would be able to sell their grain since it would be cheaper than imported grain.