Vocab
This term means the exchange of goods and services.
What is trade?
True or False: One country can produce everything it needs.
What is False?
Goods brought INTO a country.
What are imports?
A tax on imported goods.
What is a tariff?
A country with a strong economy and high standard of living.
What is a developed country?
When countries depend on each other for goods and services.
What is interdependence?
Why do countries trade?
Because they don’t have all the resources they need.
Goods SOLD to other countries.
What are exports?
A limit on how many goods can be imported.
What is a quota?
A country still working to improve its economy.
What is a developing country?
The total value of goods and services produced in a country in a year.
What is GDP?
What causes countries to depend on each other?
Uneven distribution of resources/scarcity.
Buying bananas from another country is an example of what?
What is an import?
A complete ban on trade with a country.
What is an embargo?
Name one way economists measure development.
GDP, education, life expectancy, or purchasing power.
Producing goods more efficiently than other products.
What is comparative advantage?
If a country lacks oil, what will it most likely do?
Trade with another country for it.
Selling cars to another country is an example of what?
What is an export?
Why do governments create trade barriers?
To protect domestic businesses.
What does higher productivity lead to?
Economic growth.
When a country focuses on producing what it does best.
What is specialization?
Why is trade beneficial for both sides?
Both gain something they need or value.
Why do countries import goods?
They cannot produce them or can get them cheaper elsewhere.
What is one negative effect of trade barriers?
Higher prices / less trade / fewer choices.
Why do better education and skills help a country?
.
They increase productivity and economic development.