Trade Basics
The exchange of goods and services between countries.
What is trade?
What is a tariff?
What is a tax on imports?
What is an exchange rate?
What is the price of one currency in terms of another?
Define globalization.
What is the increasing connection of economies and cultures?
Name a country that the US trades with?
What is China, Mexico, Canada, or the EU?
Define Comparative Advantage.
What is when a country can produce a good at a lower opportunity cost?
Give an example of a trade agreement.
What is NAFTA/USMCA, the European Union, or another trade agreement?
What happens when the U.S. dollar appreciates?
What makes U.S. exports more expensive and imports cheaper?
One benefit of globalization?
What is lower prices, access to more goods, or economic growth?
What is a current tariff issue?
What is tariffs on steel, aluminum, or Chinese goods?
What is a Trade Deficit?
What is when a country imports more than it exports?
How does a quota affect imports?
What is a restriction on the number of goods a country can import?
Floating vs. Fixed exchange rate?
What is floating (determined by market) vs. fixed (government-controlled)?
One drawback of globalization?
What is job outsourcing or environmental issues?
What happens when a country imposes high tariffs?
What is higher prices for consumers and possible trade wars?
How does specialization improve trade?
What is when countries focus on producing goods they make best, improving efficiency and trade?
What does WTO stand for?
What is the World Trade Organization?
What is the forex market?
What is the global market where currencies are exchanged?
What is outsourcing?
What is when jobs move to lower-cost countries?
How does inflation affect trade?
What is that inflation weakens a currency, making imports more expensive?
What is the difference between absolute and comparative advantage?
What is absolute advantage (producing more efficiently) vs. comparative advantage (lower opportunity cost)?
What was the purpose of NAFTA/USMCA?
What was to increase trade between the U.S., Canada, and Mexico?
How do exchange rates impact exports & imports?
When a currency depreciates, exports increase and imports decrease; when it appreciates, the opposite happens.
How does globalization affect developing nations?
What is increased foreign investment and economic growth but also potential exploitation?
Name a global company affected by trade policies.
What is Apple, Tesla, or another global company affected by tariffs?