Voluntary Trade
What is voluntary trade?
What is
Trade where both countries choose to trade because both benefit.
What is specialization?
What is
When a country focuses on producing what it does best.
What is a tariff?
What is
A tax placed on imported goods.
What is economic growth?
What is an increase in the production of goods and services.
Which country specializes in banking and financial services?
What is the United Kingdom or "the U.K."
Name one benefit of voluntary trade.
What is
More choices, lower prices, better quality goods, or stronger relationships.
How does specialization help countries trade?
What is
Countries trade what they make best for what they need.
What is a quota?
What is
A number limit on how much of a good can be imported.
What does GDP per capita measure?
What is the average income per person in the country.
Which country specializes in natural gas?
What is Russia.
Why do countries participate in voluntary trade?
What is
To get goods they cannot produce efficiently themselves.
Which European country specializes in automobiles?
What is
Germany.
What is an embargo?
What is
A complete ban on trade with another country.
How does education affect GDP per capita?
What is education increases skills, productivity, and income.
Why is literacy important for a country’s economy?
What is
It helps people get better jobs and earn higher incomes.
How does voluntary trade affect consumers?
What is
It gives consumers more choices and often lower prices.
Why does specialization lower production costs?
What is
It increases efficiency and productivity.
Which trade barrier completely stops trade?
What is
An embargo.
What are capital goods?
What is factories, machinery, and technology used to produce goods.
Which countries have high literacy rates and strong economies?
What is
The United Kingdom and Germany.
Why is voluntary trade important to Europe?
What is
Many European countries depend on trade to get resources and goods.
How does specialization lead to economic growth?
What is
It increases trade, productivity, and income.
What is the overall purpose and goal of a trade barrier? (This goes for all 3 barriers we learned about.)
What is
To protect your economy (business) and maintain the ability to compete in the market.
How do capital goods help economic growth?
They increase efficiency and production.
How do natural resources help a country’s economy?
What is
They provide materials for trade, energy, and jobs.