What makes you special? (Specialization)
Slow your role (Trade Barriers)
Show me the money! (Currency Exchange)
You've got a deal (USMCA/NAFTA)
You doing too much (bonus round = double points)
100
Examine the “Mexico’s Exports” visualization below.
Mexico's Exports by Sector:
What conclusion can be drawn from this information?
A. Mexico’s primary specialization is processing raw materials.
B. Mexico’s primary specialization is gathering natural resources.
C. Mexico’s primary specialization is producing manufactured goods.
D. Mexico’s primary specialization is investing in the agricultural sector.
C. Mexico’s primary specialization is producing manufactured goods.
100
What is an embargo?
A complete ban on trade with a country.
100
True or False. If we travel from the US to Brazil, we can still use our American Dollars to shop there.
False
100
How did the North American Free Trade Agreement (NAFTA) increase economic cooperation between Canada, Mexico, and the United States?
A. by reducing barriers to immigration
B. by imposing new tariffs on goods
C. by creating a common currency
D. by eliminating barriers to trade
D. by eliminating barriers to trade
100
After the Cuban Missile Crisis, the United States banned all trade with Cuba. This means that the United States placed an _______________ on Cuba. This was meant to _____________ Cuba for their position as a Communist country.
embargo, punish
200
Why do countries trade with each other?
A. Most countries trade with other countries in order to make alliances.
B. Most countries trade for foreign currency to promote economic growth.
C. Most countries produce a surplus of goods that would be wasted otherwise.
D. Most countries cannot efficiently produce everything their populations need.
D. Most countries cannot efficiently produce everything their populations need.
200
Which statement BEST describes tariffs and quotas?
A. Tariffs add an extra tax to imports. Quotas limit the number of imported goods.
B. Quotas add an extra tax to exports. Tariffs limit the number of imported goods.
C. Both tariffs and quotas make trade easier.
D. Both tariffs and quotas stop all trade.
A. Tariffs add an extra tax to imports. Quotas limit the number of imported goods.
200
Why do countries need to have a system for exchanging currency with other nations?
A. to have a uniform value of currency so they can identify what the value of goods are
B. to know which countries' currency has the greatest value so they can buy goods at the lowest cost
C. to know the value of their money compared to the value of other countries' money so they can trade goods
D. to have an international bank that converts the money of each country so countries can buy and sell goods
C. to know the value of their money compared to the value of other countries' money so they can trade goods
200
Use the image to answer the question.
Based on this chart from 2021, which of the following is the function and impact of the USMCA?
A. The agreement helped trade relations in North American countries and increased important industries in all three countries.
B. The agreement increased trade restrictions in North American countries and decreased important industries in all three countries.
C. The United States sponsored Mexico to join the World Trade Organization to join Canada.
D. The agreement led to important immigration reforms in the United States, Mexico, and Canada.
A. The agreement helped trade relations in North American countries and increased important industries in all three countries.
200
Complete the chart with the best information.
CAUSE = _________________
EFFECTS =
-- Decreased trade barriers between North American countries.
-- Increased trade between North American nations.
-- Decreased overall prices of goods traded between North American countries.
USMCA (NAFTA)
300
Read the scenario and answer the question.
"Country X, a small country in Latin America, is a major exporter of oil, natural gas, and coal.
The country has a modern, industrialized manufacturing sector and a strong automobile industry. Rapid population growth coupled with a severe drought have led to food shortages and a sharp rise in grain prices."
Which country would be the BEST country for country X to trade with?
A. a country that specializes in energy production
B. a country that specializes in car manufacturing
C. a country that specializes in textiles (clothing) manufacturing
D. a country that specializes in agricultural production
D. a country that specializes in agricultural production
300
Use the scenario to answer the question.
"The Mexican government has realized that the sales of Mexican corn is in decline. Many Mexican citizens have been purchasing imported corn from Europe. In order to encourage Mexican citizens to purchase more domestic, local corn, the Mexican government has decided to implement a trade barrier. They hope to limit the amount of foreign corn being purchased."
Which type of trade barrier would be the BEST for the Mexican government to use?
A. embargo
B. tariff
C. quota
D. physical barrier
C. quota
300
Which of the following statements about currency and international trade is correct?
A. The value of a country's currency, and how that value affects international trade, never changes.
B. The dollar has the highest value of all currencies in the world, allowing the United States to dictate terms in most trade agreements.
C. International trade requires the buyers to purchase the foreign currency, while allowing the seller to work only with their own currency.
D. International trade often requires that buyers and sellers agree on a currency in which to conduct business.
D. International trade often requires that buyers and sellers agree on a currency in which to conduct business.
300
How was the United States Mexico Canada Agreement (formerly NAFTA) designed to impact the relationship between the United States and Mexico?
A. The agreement was designed to help Mexico increase its overall trade with the United States.
B. The agreement increased the number of quotas between Mexico and the United States.
C. The agreement was designed to create tariffs on products made in Mexico.
D. The agreement has led to important changes in economic laws in the United States.
A. The agreement was designed to help Mexico increase its overall trade with the United States.
300
What were the two primary goals of the North American Free Trade Agreement (NAFTA)?
A. reducing barriers to immigration between Canada, Mexico, and the United States
B. creating a mutual defense pact between Canada, Mexico, and the United States
C. eliminating barriers to trade between Canada, Mexico, and the United States
D. reducing industrial pollution within Canada, Mexico, and the United States
E. encouraging economic growth in Canada, Mexico, and the United States
C. eliminating barriers to trade between Canada, Mexico, and the United States
AND
E. encouraging economic growth in Canada, Mexico, and the United States
400
Correct the statement below by selecting 1 word to change and writing what you would change it to on your board:
"Specialization is when a country focuses on producing the goods it makes poorly and that are demanded on the world market."
change "poorly" to either "well" or "efficiently"
400
Why might Country X embargo trade with Country Y?
A. to improve diplomatic relations with Country Y
B. to force businesses in Country X to increase their efficiency
C. to encourage Country Y to change its policies
D. to provide consumers in Country X with access to more goods
C. to encourage Country Y to change its policies
400
Someone travels from Mexico to Brazil and goes to trade their Mexican Pesos for Brazilian Reals at the currency exchange machine. For every 1 Peso they put in, they receive 0.3 Reals. What is this ratio an example of?
An Exchange Rate
400
Use the diagram and answer the question.
What best completes the diagram?
A. increased investment in human capital
B. reduced investment in human capital
C. an increase in the prices of consumer goods
D. a reduction in the prices of consumer goods
D. a reduction in the prices of consumer goods
400
Read the text and answer the question.
"In recent years, Mexican farmers have faced increasing competition from Brazilian producers. Mexican products are high quality and readily available, but goods from Brazil are sold at lower prices. This has created increased demand for Brazilian agricultural goods in Mexico."
How can the Mexican government help Mexican farmers the most?
A. It can increase the amount of goods Mexico exports by embargoing trade with Brazil.
B. It can make Brazilian agricultural goods more expensive by raising tariffs on them.
C. It can lower production costs for Mexican farmers by raising tariffs on Brazilian goods.
D. It can protect jobs in Mexico's farm industry by banning the export of agricultural goods.
B. It can make Brazilian agricultural goods more expensive by raising tariffs on them.
500
Use the table to answer the question.
What conclusion can be drawn based on this information?
A. To improve trade with Brazil, Mexico should specialize in oil production.
B. To improve trade with Mexico, Argentina should specialize in corn production.
C. To improve trade with Mexico, Brazil should specialize in machinery production.
D. To improve trade with Brazil, Argentina should specialize in soybean production.
A. To improve trade with Brazil, Mexico should specialize in oil production.
500
Regarding the purpose of each trade barrier, what is a similarity of both tariffs and quotas but NOT embargoes?
They are meant to protect domestic industries.
500
Why is a system of currency exchange more important in Latin America than it is in western Europe?
A. Latin American countries frequently trade with each other, while most western European countries are isolationists.
B. Latin American countries have mixed economies, while many western European countries have command economies.
C. Latin American countries do not have many resources, while most western European countries have abundant resources.
D. Latin American countries use many different forms of money, while many western European countries use the same money.
D. Latin American countries use many different forms of money, while many western European countries use the same money.
500
What was the original purpose of the NAFTA and USMCA trade deals?
to promote balanced, mostly free trade.
500
Use the table of Central American exports to answer the question.
Source: The Observatory of Economic Complexity
Mexico is able to efficiently produce machines, vegetable products, instruments, and foodstuffs. Which products should Mexico specialize in producing in order to trade the most with nearby countries?
A. textiles and foodstuffs
B. machines and instruments
C. vegetable products and foodstuffs
D. instruments and vegetable products
B. machines and instruments