Basic Trade Terms
Goods and services made in a different country and sold to people in your country are called
Imports
What was signed in December 2015 as a legally binding international treaty on climate change by 196 countries?
Paris Climate Accords
a tax placed on an imported product
A tariff
How many countries are currently part of the European Union?
27
What are resources that cannot be reused
Non- renewable resources
Which country currently has the highest GDP in the world?
United States
What are nations with a high average of material well-being such as the United States, Canada, Japan, Australia, and Western Europe?
Developed nations
What is the increasing interconnection of producers, consumers, and financial systems around the world?
Globalization
Goods and services made in your country and sold to people of a different country are called
Exports
No barriers for flow of workers, financial capital, or goods and services
one of the main objectives of the European Union
What are actions a nation or group of nations take to punish or put pressure on another nation?
Sanctions
How many European Union countries currently use the Euro as their currency?
20
What is the long-term heating of the Earth’s climate system due to primarily fossil fuel burning?
Global Warming
Which country currently has the second largest GDP in the world and is the largest exporter of goods in the world?
China
What is the name of countries that have made recent progress towards developing their economies. These include Mexico, Brazil, and several countries in Eastern Europe?
Newly industrialized countries
What is the process that a nation improves its economic, political, and social well-being of its people
development
When a country spends more money on imports in one year than it earns in exports
trade deficit
Which international organization was founded in 1995 that administers trade agreements, settles trade disputes, and organizes trade negotiations
World Trade Organization
Fewer or no trade restrictions
free trade
Approximately what percent of GDP is created by the European Union?
About 15%
What are resources that can be replenished for future use?
Renewable resources
Which European country, which never used the Euro as its currency, negotiated to leave the European Union on January 31, 2020 after several years of tense negotiations?
United Kingdom (Great Britain)
Countries with relatively low levels of material well-being
Less developed countries
What is the shared need of countries for the resources, goods, services, labor, and knowledge supplied by other countries?
Interdependence
A system where the values of currencies are fixed compared to one another is called a
fixed exchange rate
What is the name of the international agency that offers loans and provides financial assistance and advice to less developed countries?
World Bank
a limit on the amount of an imported good allowed into the country
import quota
What year did the Euro become official currency in circulation for many European Union countries?
2002
improvements in transportation and communication
expansion of free market economies
trade agreements.
Reasons globalization has occurred
Which country briefly left the Paris Climate Accords in 2020, rejoined in 2021, and left again in 2025?
United States
a nation’s GDP divided by its population
per capita GDP
If a country can make more goods and services than another country, then it has a(n):
Absolute advantage
when a country earns more money on exports in one year than it spends on imports
trade surplus
What renegotiated trade deal between the United States, Mexico, and Canada was ratified in 2020?
USMCA
What is an escalating cycle of trade barriers between two countries?
Trade war
Traveling is easier within Europe
Comparing prices is easier
Currency exchange costs are eliminated
advantages of using the Euro compared to each country having its own currency
Solar power
Biomass
Wind-generated electricity
Examples of renewable resources
Which country has a high GDP with a growing middle class and a lot of economic growth, but low GDP per capita as its high GDP is divided by a very large population?
India
What allows countries to make goods they specialize in and sell to other countries and buy items from other countries that those countries specialize in.
trade
What is the relationship for a country between its value of imports and its value of exports?
Balance of trade
A system that relies on supply and demand to determine the value of one currency vs. another is called a:
flexible exchange rate
What is the name of the organization that assists with exchange rates and oversees international payments to help economic growth?
International Monetary Fund
What is the goal of protectionism?
To protect domestic producers from foreign competition with the use of tariffs, quotas, and other trade barriers
Freedom of choice due to lower prices
Free movement of goods due to fewer customs checks
Free movement of people to work and settle in any member state
additional freedoms provided by the European Union becoming a single market
Oil
Coal
Nuclear energy
Examples of non-renewable resources
Much of Africa and parts of Latin America and Southeast Asia
Areas of the world with many less developed countries
Low education
Civil unrest
Poor nutrition and health
Obstacles to development for less developed countries
If a country is able to produce more of an item at a lower opportunity cost than another country, then it has a(n):
Comparative advantage
price of one country’s currency for another country’s currency
an exchange rate
What is it called when the value of a currency decreases in value (becomes weaker). This makes exports cheaper and imports more expensive?
Depreciation
to aid national defense
promoting infant industries
protecting domestic jobs
keeping money at home
helping the balance of payments
national pride
reasons that protectionists don’t want free trade
Democracy and rule of law
Functioning market economy
Ability to implement EU laws
criteria to join the European Union
What is the long-term goal for all countries to stop global warming?
A climate neutral world by 2050 and to prevent temperatures from rising more than 2 degrees Celsius.
What have the economies of Asian countries like Singapore, Taiwan, South Korea, and Japan had in common in the last 75 years?
They have had massive economic growth are highly developed nations today.
Low productivity
A lot of subsistence farming
Low quality of life
Indicators of less developed nations
banks and other financial institutions that buy and sell foreign currencies
foreign exchange market