A process used to describe the growing connection of the world economies is called

• international trade
• globalization
• protectionism

Technological improvements in transportation and communication have made international trade easier now than it ever has been.

• True
• False

The exchange of money, goods and services between nations is called

• international trade
• protectionism
• globalization

The ability of a country to produce a good at a lower cost than another country is called

• absolute advantage
• imports
• exports
• comparative advantage

Goods and services purchased from other countries are called

• imports
• exports

When a country evaluates the opportunity cost to produce an item and then chooses to produce items that they can make better than other nations, they are said to have a (an)

• export
• comparative advantage
• absolute advantage

Goods produced in one country and sold to another are called

• imports
• exports

Consumers are able to purchase higher quality products at a lower price due to international trade.

• True
• False

When countries are involved in international trade, they do not use resources as efficiently as they should.

• True
• False

What often happens with the profits made from exports? (select 2 correct answers!)

• leads to economic slow downs
• leads to economic growth
• are often reinvested in companies, resulting in the hiring of more workers and the creation of new companies