Voluntary Trade and OPEC

Why is a system for exchanging currencies necessary in international trade?

• To increase the cost of goods

• To ensure fair pricing between nations

• To simplify trade agreements

• To eliminate the need for trade barriers

What is the purpose of OPEC in the global market?

• To control the supply and price of oil

• To promote renewable energy

• To reduce oil consumption

• To eliminate oil trade barriers

How do quotas affect international trade?

• They increase the availability of goods

• They limit the quantity of goods that can be traded

• They reduce the cost of imports

• They promote free trade

Match the reasons with why countries trade goods.

• Reason for demographic growth

• Because they want to avoid using their own resources

• Reason to conserve domestic resources

• Because they want to increase their population

• Reason for international trade

• Because no country has all the resources it needs

• Reason for self-sufficiency

• Because they have all the resources they need

One benefit of specialization mentioned in the text is that it (a)   the cost of items produced.

• It increases the cost of production
• It makes work less efficient
• It lowers the cost of items produce
• It decreases trade

What is the main reason countries cannot produce all goods and services they need?

• Lack of resources

• Specialization

• High production costs

• Inefficient labor

How does specialization benefit countries in terms of cost?

• It increases the cost of goods

• It has no effect on cost

• It lowers the cost of goods

• It makes cost unpredictable

Which statement is true about specialization?

• It makes countries self-sufficient

• It increases the cost of production

• It helps countries focus on their strengths

• It decreases trade opportunities

Which countries in SW Asia specialize in oil production and export millions of barrels of oil every day?

• Saudi Arabia, Iran, Iraq, and Kuwait

• Egypt, Jordan, Lebanon, and Syria

• Turkey, Israel, Cyprus, and Georgia

• Yemen, Oman, Qatar, and Bahrain

Which of the following is a correct statement about SW Asia's oil production?

• It exports millions of barrels of oil every day

• It imports millions of barrels of oil every day

• It does not produce oil

• It only produces oil for domestic use