Why Trade?
Nations trade in two ways?
1. Exports: selling goods to other countries
2. Imports: buying goods from other countries
the concentration of the productive efforts of individuals and firms on a limited number of activities
Specialization
lack of trade restrictions among countries in order to increase trade.
Free trade
Nations have organized into regional trading groups that are called?
free trade zones
What country is the largest exporting country in the world?
China
Comparative Advantage?
country’s ability to produce a good more efficiently than other countries, or at a lower opportunity cost.
Through specialization nation’s can increase what two things?
productivity & profits
nations put up trade barriers to punish other nations?
Trade wars
international cartel that inflates price of oil by limiting supply
OPEC- Organization of Petroleum Exporting Countries
What country is the worlds largest importer?
USA
use of tactics that make imported goods more expensive than domestic goods?
Protectionism
economic interdependence?
one nation depend on other nation’s to provide goods and services they do not produce.
links 14 southern African countries in trade and economic development efforts
Southern African Development Community
made up of 27 European countries?
EU- European Union
What country exports the most oil?
Saudi Arabia
Governments try to protect home industries in three ways: Explain the three
Tariffs: tax on imported goods
Import Quota: Allows only a certain amount of a good into the country
Subsidy: payment of benefit given by governments to help a domestic producer
Actions or processes that involve the entire world and result in making something worldwide in scope
Globalization
the difference in value between a country's imports and exports.
Balance of trade
agreement between USA, Mexico, and Canada?
NAFTA- North Atlantic Free Trade Agreement
What four teams from the ACC are in the sweet sixteen?
Duke, UNC, Clemson, NC State
who benefits when a country imports a lot of cheap, less costly goods?
Consumers because they pay less.
A country with a trade deficit has?
has a higher value of imports than exports
World Trade Organization members should all offer MFN?
Most favored nation status- that no nation should extend more favorable trade terms to one WTO member than it does to another.
global international organization dealing with the rules of trade between nations
WTO- World Trade Organization
What are the first three movies of Lord of the Rings called?
1. Fellowship of the Ring
2. The Two Towers
3. Return of the King