Goods and Services
What is something you can touch, like a car or a phone?
A good
If the U.S. buys coffee beans from Brazil, that’s called an _______.
Import
A tax on imported goods is called a _______.
Tariff.
Trade between different countries is called _______.
International trade.
True or False: A country’s economy can be affected by global trade.
TRUE
What is an action someone provides, like teaching or haircutting?
A service
If the U.S. sells wheat to Mexico, that’s called an _______.
Export
A limit on how much of a good can be imported is called a _______.
Quota.
What’s one major benefit of international trade for consumers
Access to a wider variety of goods and services.
Buying and selling goods and services worldwide is part of the _______.
Global economy.
Which is an example of a service: a laptop, a bus ride, or bread?
A bus ride
True or False: Imports bring goods into a country.
True
A complete ban on trading with a country is called an _______.
Embargo.
The U.S. trading goods with Canada is an example of _______.
: International trade.
When countries trade freely without restrictions, it’s called _______.
Free Trade
Goods are tangible, while services are _______.
Intangible
Which is an example of a U.S. export: jeans from American factories or bananas from Ecuador?
Jeans from American factories.
Why might a country set a tariff on foreign cars?
To protect domestic car industries.
Why might the U.S. export airplanes but import oil?
Because of comparative advantage (countries specialize).
What international group promotes free trade between the U.S., Canada, and Mexico?
USMCA (formerly NAFTA).
A company sells software online. Is this a good, a service, or both?
BOTH(the software is a good, but downloading and support is a service).
Why might a country import goods instead of producing them locally?
Because the other country can make them cheaper, faster, or better.
Which trade barrier completely stops trade with another country?
An Embargo.
What’s the term for producing goods at a lower opportunity cost than another country?
Comparative advantage.
What global organization helps settle trade disputes between countries?
World Trade Organization (WTO).