International trade

The video explains the concept of trade, highlighting that no country can produce all the goods it needs due to uneven distribution of resources like oil, gold, and coffee. It describes how countries import and export goods, often transforming raw materials into finished products for profit. The video uses an example of tantalum's journey from Ethiopia to Australia to illustrate global trade. It also discusses the varying values of raw materials and how this affects the wealth of countries, comparing nations like Saudi Arabia and Kenya, and Bolivia and Japan.

Why do countries engage in trade?

• To showcase their wealth

• To exchange goods they cannot produce

• To increase their population

• To reduce their land size

What is the term used when goods are brought into a country?

• Exporting

• Manufacturing

• Refining

• Importing

Which of the following is an example of a finished product?

• Crude oil

• Raw coffee beans

• Unrefined gold

• A smartphone

How can countries increase their wealth through trade?

• By avoiding trade with other countries

• By transforming raw materials into high-value products

• By exporting raw materials at low prices

• By importing expensive finished goods

Why might Saudi Arabia be wealthier than Kenya?

• Because it has a larger population

• Because it exports more high-value resources like oil

• Because it imports more goods

• Because it has more land