In the past, most people grew or hunted much of their own food.

When countries depend on one another for goods and services.

Is what a country is good at producing, or its ability to produce a product more efficiently than other products.

Can give a country or region advantages in trade.

Countries that are near each other can trade at lower cost than those that are more distant.

All of the buying and selling that takes place within a country is known as _____________________

8. Coming from outside a country ________________

9. Involves exports and imports ________________________

A system that exists for exchanging two currencies.

If imported goods are cheaper than domestic goods, consumers will usually buy more.

Is a government policy or restriction that limits international trade.

What are the three types of trade barriers?

Is a tax on imports or exports.

Is a set limit on the number of units of a good that can be imported.

Is a ban on all trade with a country and thus differs from tariffs and quotas, which allow some trading to occur.

This was a severe economic downturn that affected countries around the world.

18. Removal of trade barriers. ________________________

Is economic growth or an increase in living standards.

Is a country with a strong economy and a high standard of living, such as the United States or Japan.

Only a small percentage of the world’s countries are highly developed.

Have less productive economies and lower standards of living.

Is the total value of all goods and services produced in a country in a year.

Some ways that a country can increase economic development include:

________ is a workers’ skills and knowledge.

Are affected by supply and demand. ________________

Is the amount of goods and services produced given the amount of resources used.

Are goods and services produced within a country and sold outside its borders.

Are goods and services sold in one country but produced in another.