Other nations could make the United States trade deficit larger if they ____________

A trade deficit occurs when ___________

______________ 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

The opportunity cost of one tent in England is

According to these graphs, which of the following is true?

According to these graphs, which of these is true?

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?

Suppose the United States has an absolute advantage in producing corn and oats.  Canada has a comparative advantage in oats while the United States has a comparative advantage in producing corn. According to the principle of comparative advantage, if both countries engage in trade,

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

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

Using the graph above, assume Canada has the comparative advantage in corn and terms of trade are 1 corn = 1 peanut.   How many peanuts will Canada be able to consume after trade if there’s complete specialization?

______________ 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.

Comparative advantage can move from one country to another if the country does not specialize in the production of the good in which they have the comparative advantage

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 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?

True or False.  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.

The exchange rate is the price of one country’s currency compared to another country’s currency.

If the exchange rate between U.S. dollars and British pounds was $1.50 per British pound, you would receive approximately 150 U.S. dollars for 100 British pounds.

If the exchange rate between US dollars and British pounds was 1.50 U.S. dollars per British pound, you would receive about .67 pounds per dollar.

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?

Exchange rates rarely change.

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.

When the dollar strengthens, traveling abroad is relatively cheaper.

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

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

If the US wanted to improve their balance of trade, we would want the US dollar to become _______________ and foreign currencies to become _____________________.

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 _____________.

Tariffs provide a government with revenue while protecting domestic industries.  Quotas only limit the quantity of imported goods to protect domestic industries and don't provide a government with revenue.

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 _____________.

FTAs promote which of the following?

NAFTA was an FTA that included:

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

The WTO consists of members of developed and developing nations.

The WTO is involved in trade negotiations when a country is accused of _______________, which is selling their product below the cost of production.

The WTO may support trade barriers when it discovers that  

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?

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