Why Nations Trade
Shared need of countries for the resources, goods, services, labor, and knowledge supplied by other countries
Interdependence
A common trade barrier known as a tax on imported goods
Tariff
What does NAFTA stand for
North American Free Trade Association
The country that the U.S. is currently in a trade war with
China
The United States exports more goods than any other nation except this country
China
A nation imposes trade barriers to ________
Protect domestic industries from foreign competition
What decade did the free trade movement begin
1930's
How was the U.S./China trade war started
U.S. increased tariffs on Chinese imports
Most of the goods imported into the United States come from these three countries
Canada, China, and Mexico
The two effects of trade barriers
Higher prices of foreign goods and trade wars
The main goal of the World Trade Organization was _____
Making global trade more free
What was the Chinese response to the increasing tariffs by the U.S.
Put higher tariff rates on U.S. goods
Because countries cannot produce all goods with their resources they ____________
Trade with countries to get the goods or resources they need
Describe a way that trade barriers can affect you as a consumer
Answers vary
Whats the difference between an import quota and a tariff
Import quota has a limit on how much can be imported while a tariff is a tax on imported goods
The current U.S. trade deficit is
54 billion USD
According to the law of comparative advantage a nation is better off when ______________
It produces goods and services for which it has a comparative advantage
What two things does protectionism protect
Jobs and infant industries
What effect does a free trade agreement have on the countries that sign it
Encourages trade among nations and betters relationships with those nations
The last year the U.S. had a trade surplus
1975