Why Trade?
The willing exchange of goods and services between countries.
What is voluntary trade?
Focusing on producing particular goods or services.
What is specialization?
A restriction on international trade.
What is a trade barrier?
Money used by a country or region.
What is currency?
An economic and political partnership among European countries.
What is the European Union (EU)?
Countries trade because they do not all have the same amount of these.
What are resources?
Germany is known for specializing in this manufactured product.
What are automobiles/cars?
A tax placed on imported goods.
What is a tariff?
Trading one country's money for another country's money.
What is currency exchange?
One major reason European countries cooperate through the EU is to make this easier.
What is trade/economic cooperation?
What is voluntary trade?
In our simulation, countries traded because each had something another country needed. This demonstrates this economic idea.
Russia specializes in producing and exporting this energy resource.
What is natural gas?
A limit on the amount of a good that may be imported.
What is a quota?
The common currency used by many European countries.
What is the euro?
True or false: Every country in the European Union uses the euro.
False
A country has plenty of timber but needs natural gas. Explain why trade could benefit it.
It can exchange what it has for something it needs.
The United Kingdom is known for specializing in this service industry.
What is finance/banking?
A restriction that stops trade with another country.
What is an embargo?
France and Germany can trade without exchanging currencies because they both use this.
What is the euro?
Countries in the EU agree to common rules that can make the movement of goods and services easier. This is an example of what?
What is economic cooperation?
Complete the chain: Geography → Resources → _____ → Trade.
What is specialization?
Why does specialization encourage trade?
Countries focus on particular goods/services and trade
A government wants imported cars to cost more but does not want to stop them from entering the country. Which trade barrier would it use?
What is a tariff?
A British company buys a product from Germany. Why might currency exchange be necessary?
The UK uses the pound while Germany uses the euro.
Explain one way EU cooperation can benefit member countries.
Answers may include making trade easier, reducing barriers among members, creating common rules, or making it easier for goods/services/people/capital to move among members.