SW Asia Middle East Economics Voluntary Trade

Voluntary trade occurs when different countries choose to engage in or to

• refuse to exchange goods with one another

• have only one country exchange good with one another

• exchange of goods with one another

• supply only goods that are not wanted in their countries

Countries trade goods because

• no country has all the resources necessary to produce every single thing its people need

• all countries just want to make friends with other countries

• it is cheaper than producing products in their own country

• it helps keep wages lower

Voluntary trade is good for countries because it lets a country

• keep all of its own natural resources

• use up other countries resources

• keep incomes low

• sell its own resources and buy resources it needs

Which word best fits the definition below:

"Countries cannot produce all the goods and services they need, they must specialize in what they do best. It is an efficient way to work and cost of items produced is lower:"

• Trade Embargo

• Utilization

• Specialization

• Production

Specialization helps

• increase trade and lower cost of production

• decrease trade and raises cost of production

• to prevent foreign competition

• countries feel less able to meet the needs of consumers

Countries such as Saudi Arabia, Iran, Iraq, and Kuwait specialize in what type of goods?

• Wheat and corn production

• Information technology

• Service industry

• Oil

The world's largest specialized exporter of diamonds is which country?

• South Africa

• France

• Israel

• Saudi Arabia

Which country in SW Asia Middle East has the most diverse economy by development of gold, coal, textiles, and automobiles

• Turkey

• Afghanistan

• Jordan

• Israel

Which is the best definition of a trade barrier?

• ports of entry that are closed

• are natural or man-made obstacle to voluntary trade

• a mountain range

• landlocked countries

Which SW Asia country is landlocked and makes it difficult to ship goods overseas?

• Israel

• Kuwait

• Turkey

• Afghanistan