International Trade Review

What is specialization?

• When an individual produces a good.

• When a country or individual only produces those goods and services they can produce at the lowest cost

• The exchange of a good and service for another good or service.

Why would you voluntarily trade?

• They like something different

• Because why not?

• They expect to be better off after the exchange/trade

How does specialization and trade make most people better off?

What is one advantage or benefit of a country specializing in the products it can produce best?

Interdependence is when people or countries rely on other people or countries to get the goods or services they want

• False

• True

How does international trade link you to countries around the world?

Give an example of how a countries are interdependent.

When citizens in one country sell goods to citizens in another country, the goods and services they sell are called _____.

• trades

• imports

• exports

When citizens buy goods from another country, the goods and services they purchase are called _____.

• trades

• imports

• exports

1. ______ means not having enough resources to satisfy everyone’s wants.

• scarcity

• economy

• shortage