Mercantilism, Shmercantilism
This term describes the complex system that moves parts and products through multiple places before sale.
What is the supply chain?
This 1947 agreement lowered trade barriers and set rules for freer trade before becoming the WTO in 1995.
What is the GATT (General Agreement on Tariffs and Trade)?
In the mercantilist system, colonies served first as:
New markets to sell goods
Classical economists believed that when countries specialize, this overall outcome occurs for everyone.
What is everyone benefits?
These two actions are the basics of global trade: countries sell abroad and buy from foreign partners. What are they?
What are export and import?
These taxes on imports were used to discourage foreign goods and raise revenue.
What are tariffs?
Besides lowering barriers, this is another role the WTO serves when countries believe rules aren’t being followed.
Answer: What is serving as a sort of court where countries can lodge complaints?
Turning lumber into furniture is an example of...
Manufactured Goods
When countries specialize, they free up time and resources to do this—creating entirely new products.
What is innovate or innovation?
This term refers to trade in intangible things like advertising and telecommunications.
What are services?
Classical economists rejected mercantilism in favor of this idea: countries should make what they’re relatively best at and trade for the rest.
What is comparative advantage?
What complaint do U.S. labor unions make regarding China’s trade practices, according to the text?
Answer: What is that China’s unfair trade practices drive down U.S. wages?
This was a major global outcome of mercantilism and European expansion:
Europe emerged as the dominant world power with vast empires.
Give one example from the article of a country and the goods it efficiently exports.
What are Costa Rica with pineapples/coffee or Germany with cars/computers?
This metric totals the value of all final goods and services a country produces in a year.
What is GDP?
According to the text, what was one negative effect mercantilism had on international trade?
What is that it created barriers to international trade?
Why is it hard for the WTO to fix problems like agricultural subsidies, and how many members must agree?
What is changes require consensus among its 164 member countries?
What led to the decline of European control over colonies after about 500 years?
World War II’s destruction weakened European powers
Bet or Sus: If Japan, Vietnam, Luxembourg and Venezuela all make high end trading cards, that is an example of specialization.
Sus: Japan is the best at making these kinds of cards, and no other countries really try.
Name a transport advancement that helped connect producers to global customers.
Container Ships