A sustained trade deficit could be a problem for a country because ____________.

A trade deficit occurs when ___________________________________.

Exchanges that happen across country borders are known as _______.

_________________________ are products that are produced domestically but sold internationally.

When a country exports more than it imports, it is operating with a ____________________

Which of these is an example of an involuntary exchange?

Involuntary exchanges are not preferred because _________.

A(n) __________ is when both parties are willing and agree to exchange a product for an agreed upon value.

Which of these is not expected when international trade occurs?

Which of these is NOT a benefit of trade?

Which of these is a benefit of trade to consumers?

When a trading partner's economy improves, we expect to see ____________________ in the quantity of exports from the United States to that country.

When there is an increase in the quantity of exports, we expect ____________ in the amount of labor used domestically to produce those exports.

Consumers often see lower ____________ when international trade occurs.

Which of these is a reason that producers may choose to import raw materials (resources) from foreign countries?

Why do some argue that interdependence is beneficial?

If there is an overreliance on exports to drive economic growth, a slowdown in foreign economies could cause--

You trade your yogurt for a granola bar with a friend at lunch. This is a(n) _______________ exchange.

You make a car payment for your own car. This is a(n) _______________ exchange.

In exchange for washing the car, your parents allow you to use it for the evening. This is a(n) _______________ exchange.

You experience identity theft as someone uses your name to open up a credit card account. This is a(n) _______________ exchange.

You set down your grocery bags on the ground while waiting for the bus, but someone takes one of your bags while you are not looking. This is a(n) _______________ exchange.

You pay a tax on chocolate ice cream and discover the revenue from that tax is used to build a swimming pool at the Mayor's house. This is a(n) _______________ exchange. (Hint: Do you and the mayor both gain?)

Economist Adam Smith recognized that trade often started near _____ due to the ability to reach larger markets.

Exporting countries can experience economic slowdowns that are caused by foreign economic slowdowns.

One benefit of trade is that consumers generally see lower prices.

One benefit of trade is that producers have access to raw materials that they may not be able to access in their home markets.

One drawback of trade is that there may be domestic job loss if Americans buy imported goods instead of goods produced domestically.

One benefit of trade is that consumers see a wider variety of products and services than without trade.

One drawback of trade is that it can create dependency on another nation when certain goods can no longer be produced domestically.

According to these graphs, which of these is true?

According to these graphs, which of these is true?

The opportunity cost of one tent in England is--

If Mexico can produce the same quantity of tomatoes that the United States can, but Mexico uses fewer resources than the United States to do so, we conclude:

Assume Chile and Canada can produce either olive oil or plastics. In addition, assume Chile has a comparative advantage in producing olive oil, while Canada has a comparative advantage in producing plastics. According to the principle of comparative advantage and trade, which of the following statements is true?

When countries specialize in the production of goods they have the comparative advantage in, both ___________ and ___________________ will increase.

France has a comparative advantage in the production of cheese. This means they have a lower ________________ than other nations that produce cheese.

Countries should import goods for which they have a _______________ opportunity cost.

Using the graph, which nation has the comparative advantage in the production of peanuts?

Using the graph, if Canada has a comparative advantage in corn, how much should they produce when they specialize in the production of corn?

______________ can enable trading partners to consume more than they can produce domestically.

An open economy means that countries:

If nations are in a closed economy, they ________________ trade with each other.

Xanadu has comparative advantage in making roller skates. Atlantis has comparative advantage in making fishing poles. Each nation will specialize in the good where they have comparative advantage. Which of the following is true?

_________________ show(s) the maximum amount of output possible given a set quantity of resources and a set level of technology, in a particular time period.

A country will _____ goods in which it has a comparative advantage.

A country will _____ goods in which it does not have a comparative advantage.

_____ means that a country focuses on producing goods and services in which it has a comparative advantage.

Specialization and trade allow countries to consume at points _____ their production possibilities curves. This could not be achieved in a closed economy.

A furniture store in Nepal buys furniture from a manufacturer in India. This transaction represents an export for India and an import for Nepal.

International trade refers to the exchange of goods and services among countries.

When a country buys goods from other countries, these goods are called _____________.

What kinds of goods are typically exported by developed countries?

An increase in leather prices in Argentina will not affect the export of Argentinean leather shoes.

______________________ are restrictions that governments impose on trade.

If American farmers sell part of their corn production to Mexican consumers, their sale represents...

Countries who have abundant natural resources are likely to ___________________ those resources to other countries.

The price of a currency compared to another currency is the _____________________.

When a country imports more than it exports, the difference is called ___________.

The United States has run a trade surplus for almost every year in the last three decades.

Assume that Portugal's imports are $350,000 and their exports are $400,000. This means that they have _________________________.

If Argentina exports $120 million and imports $135 million in goods, what is Argentina's balance of trade?

Balanced trade is defined as...

If the United States imports more than it exports, which of these is true?

If the trade deficit changes from -130 million to -100 million which of these could have happened?

Nations with persistent trade deficits often experience slower economic growth.

Over time, trade deficits can lead to a change in the value of a country’s currency.

If American cars are sold at a lower price than Japanese cars, Japanese car exports to the United States will _____, holding all else constant.

If the price of steel, which is used to produce cars, decreases in the United States, American car exports will _____.

If India reduces taxes on American imports as a result of a trade agreement between the two countries, American exports to India would _____.

If Americans developed a preference for Costa Rican coffee, Costa Rica’s coffee exports to the United States would _____.

If the country of Xanadu has exports of $450 million and imports of $380 million, they are operating with _____.

If the country of Xanadu has exports of $100 million and imports of $120 million, there is a _____.

The country of Alphaville has a trade deficit of $40 million. To decrease this deficit,

Alphaville must either increase exports or _____.

If the country of Xanadu has exports of $450 million and imports of $450 million, they are operating with _____.

Countries with persistent trade deficits often experience _____ than nations with trade surpluses.

Holding all else constant, an increase in exports will cause which of the following?

A system that allows supply and demand to determine the exchange rates is called a--

If the dollar-euro exchange rate was $1.25 per euro in June, but changed to $1.30 per euro in July, which currency appreciated (or strengthened) against the other?

If the U.S. dollar strengthens compared to the Mexican peso, imports from Mexico would become less expensive.

It is cheaper to travel abroad when the U.S. dollar is strong rather than weak.

If the exchange rate changes from $1= 105 yen to $1= 107 yen, the dollar has __________________ and the yen has ___________________________.

Importing Japanese cars into the United States is cheaper when the U.S. dollar is strong against the Japanese yen.

If the U.S. dollar is weak, American companies will be able to export their products abroad more easily.

A ______________ benefits foreign companies selling their products in the United States.

A ______________ hurts U.S. consumers who prefer imported goods.

If the US dollar goes from $1 = 0.98 Euro to $1 = 1.04 Euro, which of these is true?

If the US dollar goes from an exchange rate of $1= 110 yen to $1= 100 yen, which of these is accurate?

If a German family wishes to tour New York City, they want the German currency (the Euro) to _________________ so they get more dollars per Euro. This also means the US dollar would ________________________.

The tariff resulted in _____ in the supply of imported products.

The price that consumers paid for imports was _____ after the tariff was implemented.

The total quantity demanded of foreign televisions _____ after the tariff was imposed.

U.S. producers would have had _____ competition from foreign producers after the tariff was imposed.

U.S. producers of televisions would have seen a _____ demand for their products after the tariff was imposed.

Who pays the tariff on imported televisions?

Which of the following trade barriers is a special tax on imports?

Although the U.S. has so many resources, why do we still trade with other countries?

Why do governments impose trade barriers?

Which of the following is NOT a consequence of tariffs?

How do trade barriers negatively impact an economy?

If a quota of 40 towels is placed on imported towels that sell for $5 each, what is the total revenue to the government?

After a tariff is imposed, the price the consumer pays will _____, and the price the foreign producer receives will _____.

In most cases, trade barriers are harmful to an economy.

Non-tariff barriers include licensing requirements for importers.

When an embargo is placed on a country, no imports from or exports to that country are allowed.

Governments sometimes put pressure on other countries by limiting exports to those countries for political reasons, like human rights violations.

After a trade barrier is put in place, the market price will be ______________________ and the quantity of the product available will be _____________________.

The countries currently in NAFTA are the United States, China, and Mexico.

The World Trade Organization (WHO) has more than 200 member nations.

Dumping refers to selling a product below the cost of production, generally to run

competition out of business.

A Free Trade Area (FTA) is an agreement between nations to reduce trade barriers.

Countries trading in a Free Trade Area (FTA) often experience lower prices on imported goods from other countries in the same FTA.

Some groups dislike Free Trade Areas (FTAs), as they may lead to domestic job loss

FTAs promote which of the following?

The European Union is different from a Free Trade Area because the EU also allows

The WTO may support trade barriers when it discovers that--

The WTO consists of members of developed and developing nations.

By encouraging companies to produce goods and services for which they have comparative advantages, free trade--

How many members are there in the European Union?

(Hint: 9 x 3)

Some business leaders did not like the NAFTA agreement because they believed...