Why Trade?
The primary reason people trade
What is obtaining goods or services they can't produce themselves
What is a trade barrier?
Anything that interferes in free trade
What is free trade?
Trade without barriers
Give me an example of a necessity
water, food, shelter, clothes
How does trade allows nations to acquire resources?
It allows them to obtain resources that they otherwise wouldn't have
Name one type of trade barrier
Tariffs, Quotas, Embargoes
What is an embargo?
Stopping trade entirely with a certain country
Name a luxury and explain why it is a luxury
up to me if you got it right
Name one way that trade can lead to cultural exchange
Trade can introduce new ideas, traditions, and products from different cultures to a nation
How do tariffs affect imported goods?
Tariffs increase the price of imported goods, making them less competitive with domestic products
Give an example of product regulation
Limits on the types of materials or ingredients used in a product or product label warnings
The person who purchases something is called a what?
Consumer
Why do nations specialize in certain goods for trade?
Specialization allows nations to use their resources more efficiently and produce goods at a lower cost
How might a trade barrier impact a consumer?
They can raise prices for consumers or limit their choices to be more domestic than foreign
Define both import and export
Import: Goods or services brought into the country
Export: Goods or services shipped out of the county
What is a quota?
Limiting the amount of a good that can imported into a country
Why did nations participate in mercantilism prior to specialization?
They thought it would make them have more money if they weren't paying others for goods/they didn't want to rely on others for goods
How do sanctions put a barrier on trade?
They stop trade with another country in order to convince them to take a certain political action
What is a trade surplus? What is a trade deficit?
trade surplus: having the value of your exports exceed the value of your imports
trade deficit: having the value of your imports exceed your exports
Give one example of a fair trade company
I will check this, there are lots to choose from