International Trade: Reading Comprehension — Grade 12

According to the passage on why nations trade, what is the primary reason the global marketplace exists?

• Countries need to trade with one another

• Most countries are self-sufficient in all goods and services

• Governments want to eliminate competition

• Businesses prefer to sell only within their borders

The passage states that countries become interdependent on one another because each country possesses what?

• Uniform economic policies

• Identical consumer preferences

• Unique resources and capabilities

• Unlimited domestic labor supply

Which statement aligns with the passage’s description of national production of goods and services?

• Most countries do not manufacture all the goods and services they need

• Most countries produce every good and service domestically

• Most countries only trade services, not goods

• Most countries avoid buying anything from other countries

Which factors from the passage explain why a country may produce goods better or cheaper than other countries? Select all that apply.

• Better or more up-to-date technology

• Labor force with a different set of specialized skills

• Easier access to raw materials

• A larger population regardless of skills

According to the passage, when countries can trade for goods they cannot easily or cheaply make, what does this allow them to do?

• Focus their skills on what they can produce well

• Stop producing goods entirely

• Adopt identical industries across countries

• Lower wages to compete

According to the passage, what is international trade?

• The exchange of goods and services among nations

• The domestic sale of goods within one country

• The exchange of only financial assets between banks

• A government program that limits imports

Based on the passage, which pairing correctly describes who makes exchanges and who controls them in international trade?

• Exchanges occur between businesses; governments of trading countries control them

• Exchanges occur between governments; businesses control them

• Exchanges occur between consumers; banks control them

• Exchanges occur between NGOs; international courts control them

In the slide image showing a handshake over a world map with trade icons, what concept from the passage does this image illustrate?

• International trade as the exchange of goods and services among nations

• Domestic retail competition within a single city

• Personal finance and household budgeting

• Tourism flows between regions

According to the passage on imports and exports, what are imports?

• Goods and services purchased from other countries

• Goods and services sold to other countries

• Only raw materials mined domestically

• Only digital services exchanged online

According to the passage on imports and exports, what are exports?

• Goods and services sold to other countries

• Goods and services purchased from other countries

• Only agricultural products traded internationally

• Only goods transported by ship