Understanding Trade Basics

What is trade?

• Trade is a form of advertising.

• Trade is the sale of stocks only.

• Trade is the process of manufacturing goods.

• Trade is the exchange of goods and services.

What is the main purpose of trade?

• To facilitate the exchange of goods and services.

• To increase tariffs on imports.

• To limit the availability of goods.

• To promote isolationism in economies.

What are the two main types of trade?

• Domestic trade and international trade

• Local trade and regional trade

• E-commerce trade and barter trade

• Wholesale trade and retail trade

What is international trade?

• The sale of services only to domestic consumers.

• International trade is the exchange of goods and services between countries.

• The exchange of currency between banks.

• The trade of goods within a single country.

What is domestic trade?

• Domestic trade is the exchange of goods between countries.

• Domestic trade refers to international trade agreements.

• Domestic trade is the exchange of goods and services within a country.

• Domestic trade is the sale of services only outside a country.

What is a benefit of trading goods?

• Decreased product quality

• Reduced trade opportunities

• Increased efficiency and variety of goods.

• Limited access to local markets

How does trade help countries?

• Trade increases the cost of goods for consumers

• Trade helps countries by enhancing economic efficiency, increasing access to goods, promoting competition, and fostering international relationships.

• Trade only benefits wealthy countries

• Trade leads to job losses in all sectors

What is the barter system?

• A trade system that requires a third-party mediator.

• A method of exchange involving only digital currencies.

• The barter system is a method of exchange where goods and services are traded directly for other goods and services without using money.

• A system where money is used for all transactions.

How does the barter system work?

• The barter system allows direct exchange of goods and services between parties.

• It is based on the use of credit and loans.

• It involves trading currency for goods.

• It requires a central authority to regulate exchanges.

What is one disadvantage of the barter system?

• Easy to determine value of goods.

• Encourages trade between different regions.

• Lack of a common measure of value.

• Requires no trust between parties.