Barriers
If a country puts taxes on a certain imported good, what type of barrier is that government using?
Tariffs
What type of advantage is it when a country can produce something cheaper and more efficiently than another country?
Absolute Advantage
What type of trade happens when the trade happens in the same country?
Domestic Trade
Their goal is to try to get a trade surplus and try to gain more exports than imports.
What are three methods that countries use to improve their global trade relations?
Trade Centers, Trade Missions, and Trade Talks.e
If a country creates permits that nations use to keep track of imports and regulate the level of imports. What type of protection is that country using?
Licenses
If say Colorado can produce pencils better than Pennsylvania can, what type of advantage does Colorado have over Pennsylvania?
Absolute Advantage
What is Global Trade?
It is when trading happens across to different countries to gain imports that a country can't produce as easily.
Would you want to trade with a country that has a strong currency or weak currency if you were trying to get more exports?
Strong Currency because that allows the country to be able to pay for a lot more exports.
Name one government that support global trade.
European Union, World Trade Organization, and North American Free Trade Agreement.
What type of barrier protects domestic industries from foreign competition?
Subsidies
What type of advantage is it when a country can produce something with less of an opportunity cost than another country?
Comparative Advantage
If someone that lives in Kentucky trades something with another person that lives in Arkansas, what type of trade is it?
Domestic Trade
Explain how trading affects trading.
It affects trading because different countries have different currencies which could make it hard for a country with weak currency to trade with a country with strong currency.
What is trade surplus?
Trade surplus is when a country exports more goods and services than it imports.
If a government creates a criteria for determining a product's ability to meet specified guidelines or requirements, what type of barrier is the government using?
Product Standards
What is the difference between comparative and absolute advantage?
Absolute advantage is when a country can produce something cheaper and more efficiently than another country. While comparative is when a country can produce something with less of an opportunity cost.
If a trade is happening between two different countries, what type of trade is happening between the two countries?
Global Trade
Explain how competition is important in trading.
Trade talks often focus on reducing inflation, improving growth and employment, and settling disputes but the ultimate goal is to improve global trade.
What type of barrier limits the volume of exports or imports that move into or out of a country?
Say that the US gives up 20 cars to build 10 planes and China gives up 15 cars to build 15 planes. Who has the advantage and what type of advantage is it?
China has the comparative advantage over the US.
The trade is not that good because both of the people are not benefiting from the trade because they are trading for things that they already own.
This is Mr. Blakely's ___ year teaching.
2nd
Why is world trade important?
Would trade is important because it allows countries to get things that they can not produce as easily and it allows countries to trade away things that they can produce very easily.