Unit 1
Name three barriers to free trade.
Tariffs; Quotas; Dumping; Sanctions; Subsidies; Trade Agreements; Currency Manipulation
What is a trade surplus?
When the amount of exports is larger than the amount of imports
What is comparative advantage and provide an example.
Comparative Advantage is when one country or area produces something in high quantities at a very low cost. For example, the Middle East has a comparative advantage in producing oil.
What is a trade deficit?
When the amount of exports is less than the amount of imports.
How long has international trade been happening? Name a time period and give an example.
Rome/200 AD/traded with Egypt (silks, ceramics, etc.)
What is a trade balance?
The difference between the value of a country's exports and the value of its imports.
Why were world leaders interested in creating global trade agreements after WW2?
They believed it would maintain peace.
Name one of three organizations that advocate for free trade.
WHO
IMF
World Bank
What is a negative result of global trade?
Outsourcing; environmental damage
Is a trade deficit always bad?
No!
Name 3 reasons for inequality in developing countries.
Civil war; lack of education; corruption; dictatorship; high fertility rate; unfair trade rules; dependency on aid.
What is Gross Domestic Product (GDP)?
GDP is the value of all goods and services for a certain period of time.
How do companies like Nike and Apple rely on the global supply chain to deliver products?
Different parts to different products are produced in places that have a comparative advantage to keep the prices low for consumers.