Economics: Specialization and Global Trading

Define economy...

• the amount of tax on special products

• the importing and exporting of cars

• the production and distribution of goods and services

Why do countries specialize? Why do they produce specific products?

• They make products based on available resources.

• They make what they like.

• They only make what people want.

• They don't know how to make everything people want.

Why do countries trade goods and services with other countries?

• They like the people in other countries.

• No country can produce everything its citizen want or need

• Countries have too much of some resources.

Exports are goods and services that...

• bought and brought in from other countries.

• sold and shipped to other countries.

• sent to my next door neighbor.

• shipped to Mr. Chitwood.

Imports are goods and services that are...

• sold and shipped to other countries.

• traded with other 6th grade teachers.

• bought and brought in from other countries.

Countries that trade with other countries are called...

• trading partners

• imports

• global people

When countries depend on each other for various goods and services, these countries are ...

• importing

• super-fun countries

• interdependent

Trade barriers are...

• different types of money systems

• ways governments help other countries make more money

• trading partners

• government restrictions used to limit or control trading with other countries

3 types of trading barriers are...

• tariffs, quotas embargos

• imports, exports, limited products

• cars, trucks, school buses

• tshirts, gym shorts, running shoes

What is a tariff?

• a ban on trade with a different country

• a limit on the quantity of an item brought into a country

• a tax placed on imported goods