Specialization and Trade

To specialize means...

• to rely on others to make your goods

• to use your productive resources to create a limited variety of goods

• the trade of goods worldwide

• a present day consequence

What makes countries wealthy?

• the division of labor (specialization)

• a large military

• a large labor force

• a trade surplus

Nigeria over-specializes in the production of which good?

Match the term with its definition.

• when countries or regions depend upon on

• Trading Partners

• countries and regions that trade with ea

• import

• goods and services sold and shipped to o

• interdependent

• efficient use of the productive resource

• specialize

• goods and services bought and brought in

• exports

How does specialization encourage trade?

• Lowering the cost and increasing the quality of goods/services

• taxing goods and services

• limiting how much goods can be imported

• completely blocking all trade

services that can be produced most efficiently and cost effectively

• standard living

• specialization

• benefits

• trade

What is specialization?

• Producing all goods that the country needs so that trade with other countries isn’t necessary

• Trying to avoid investing in capital goods because it’s too expensive

• Producing goods a country can make most easily so that they can trade for goods that they can’t produce locally

• Directly trading goods with another country without having to use money
  

Venezuela controls large deposits of oil. How does economic specialization affect oil production in Venezuela?

• Venezuela produces only enough oil for its own needs in order to conserve it for the future.

• Venezuela produces only enough oil for its own needs because it is difficult to ship internationally.

• Venezuela focuses on importing the oil it uses in order to conserve its own supplies for the future.

• Venezuela focuses on producing oil and selling it to other countries to raise money for the government.

What is the purpose of specialization?

• to increase the efficiency of production

• to increase the volume of production

• to create a negative balance of trade

• to create an economic barrier to trade

Read the text. Then answer the question that follows. Country X, a small country in Latin America, is a major exporter of oil, natural gas, and coal. The country has a modern, industrialized manufacturing sector and a thriving automobile industry. Rapid population growth coupled with a severe drought have led to food shortages and a sharp rise in grain prices. Which country should Country X trade with?

• a country that specializes in energy production

• a country that specializes in car manufacturing

• a country that specializes in textile manufacturing

• a country that specializes in agricultural production