International Trade

Multiple Choice

One of the important parts of economics is interdependence. Which of the following is an example of interdependence?

• People make their own clothing.
• People often move to places that aren't as crowded.
• People need goods and services provided by other people.
• People grow their own food.

Multiple Choice

What are the reasons a country may produce goods better or cheaper than other countries?

• Better technology

• Specialized labor force

• Access to raw materials

• All of the above

Multiple Choice

What is international trade?

• The exchange of goods and services among nations

• A type of local trade

• Trade that only occurs within a country

• Trade that does not involve governments

Multiple Choice

What is the difference between nations exports and imports?

• Balance of Trade

• Real GDP

• Comparative Advantage

• Absolute Advantage

Open Ended

What did you find? List two of the US top exports and two of the top imports.

Open Ended

What did you notice about products we export and import?

Multiple Choice

Which of the following products is NOT imported to the United States in any great quantity?

• milk

• oil

• coffee

• silk

Multiple Choice

What is an absolute trade advantage?

• When a country can produce a product at a higher unit cost than others

• When a country can produce a product at a lower unit cost than others

• When a country imports more than it exports

• When a country has no trade relations with others

Multiple Choice

Scenario: Sarah and James are both skilled in baking cookies and cakes. However, Sarah can bake 12 cookies in the time it takes James to bake 10 cookies. Meanwhile, James can bake a cake in the time it takes Sarah to bake 12 cookies. Question: Which concept is illustrated in Sarah and James's baking skills?

• Exports

• Comparative Advantage

• Absolute Advantage

• Imports

Multiple Choice

What are the benefits of engaging in international trade?

• Access to a better variety of goods and services

• Improved standard of living for involved countries

• Access to resources not available in your own country

• Lower prices due to increased competition

Multiple Choice

What is the role of the U.S. Treasury Department in monitoring trade?

• To control all businesses

• To monitor trade through customs

• To search all goods

• To set prices for goods

Multiple Choice

What is the difference between a trade surplus and a trade deficit?

• A trade surplus occurs when a nation imports more than it exports.

• A trade deficit occurs when a nation exports more than it imports.

• A trade surplus occurs when a nation exports more than it imports.

• A trade deficit occurs when a nation imports less than it exports.

Multiple Choice

What is the purpose of tariffs in international trade?

• To increase the global market share of a country

• To reduce the quality of imported goods

• To protect domestic industries from foreign competition

• To encourage free trade between countries

Multiple Choice

What is a quota and how does it affect imported products?

• It limits the quantity or monetary value of products

• It increases the number of products allowed

• It has no effect on domestic products

• It is only applicable to food products

Multiple Choice

What is an embargo and what are its common reasons for implementation?

• A total ban on goods

• A type of tax

• A trade agreement

• A political alliance

Multiple Choice

Which of the following is a benefit of global trade agreements?

• Increased isolation of economies

• Enhanced economic cooperation between countries

• Higher tariffs on exports

• Decreased foreign investment

Multiple Choice

What is a criticism of Regional Free Trade Agreements?

• They can lead to trade diversion from more efficient global producers to less efficient regional producers.

• They always result in economic losses for member countries.

• They reduce the sovereignty of member states.

• They eliminate all forms of trade barriers globally.

United States-Mexico-Canada Agreement

​USMCA

The USMCA, which substituted the North America Free Trade Agreement (NAFTA) is a mutually beneficial win for North American workers, farmers, ranchers, and businesses

The Agreement creates more balanced, reciprocal trade supporting high-paying jobs for Americans and grow the North American economy.

Multiple Choice

What are some reasons countries participate in international trade?

• To access unique resources

• To become independent

• To avoid trade

• To increase isolation

Open Ended

Write a short script for a conversation you would have with a family member or close friend to explain the benefits of engaging in trade with other countries.

Poll

How confident do you feel about this topic now?

• Very confident
• Somewhat confident
• Not confident