Countries trade goods because no country has _____ necessary to produce every single thing its people need.

Voluntary _____ for countries because it lets a country sell its own resources and buy the resources it needs.

Because countries cannot produce all of the goods/services that they need, they must specialize in what _____.

Specialization is a/an _____ to work, and the cost of items being produced is lower.

It increases trade because a country can get what it needs at the _____ when produced by someone who specializes in producing that item.

For example, Italy is home to highly skilled industrial workers, engineers, and scientists. The country also has many industrial factories. As a result, Italy _____ in the manufacturing of automobiles.

Trade barriers are natural or non-made _____ to voluntary trade.

Natural trade barriers include _____, deserts, rain forests, or lack of access to bodies of water.

In Europe, _____ make it difficult for northern Italy to trade with Switzerland.

The countries are building tunnels through the mountains to help make _____.

Political trade barriers are policies _____ to regulate trade.

Trade is a/an _____ of every country's economy.

However, countries sometimes set up trade barriers to _____ because they want to produce their own goods and sell them in their own country.

To limit or control trade, countries set up _____, such as tariffs, quotas, and trade embargoes.

Tariffs are _____ placed on imported goods.

Tariffs are used to protect a country's _____ from foreign competition.

The added tax makes an imported good _____, thus encouraging the country's consumers to buy domestically produced items.

When countries outside of the European Union want to sell their goods in the EU, they must _____.

This makes the non-EU products _____ than the products made by EU members. Which would you buy?

Example: If a US company _____ fruit to a country in the EU, the US company must pay a tariff which makes US fruit more expensive.

Quotas are _____ of a good that can be imported into a country.

They are used to prevent _____ of a good from entering a country.

When there is too much of a good, _____ and businesses don't make a profit.

Quotas limits the amount of goods available, which causes _____.

They help protect a country's own businesses from _____.

The European Union _____ on the amount of steel that can be imported from certain countries.

The effect is similar to a tariff, because it makes steel from those countries harder to get, and _____.

The helps steel producers within the EU _____ steel.

Embargoes are a _____ to trade

In an embargo, a nation ____ with another country

Refusing to trade with another country is a way to hurt it _____

Recently, the European Union began placing embargoes on the sale of _____ and other technologies to Iran.

This was done because the countries of the EU _____ was trying to build nuclear bombs

EU countries hope that the embargo will _____ for Iran to build this type of weapon.

Currency is something that is _____ and can be used to purchase goods and services in a market.

Because countries have _____ of currency, international trade requires a system for exchanging currencies between nations.

Money from one country _____ into the currency of another country to pay for the goods in that country.

What the currency of a nation is worth in terms of another country's currency is called the _____

For example, an exchange rate of 58.27 Russian Rubles to the US Dollar means that 58.27 Russian Rubles are _____ as 1 US Dollar

Foreign exchange makes it _____ all around the world.

When a nation's _____, so does the value of its currency.

Because of this, exchange rates are _____.