Unit 4 International Economics

Based on your knowledge of comparative advantage, which situation would MOST benefit Amazonia and Wakanda?

• Wakanda specializes in cars and Amazonia specializes in computers and the two countries engage in trade.

• Neither Amazonia or Wakanda specialize and the two countries do not engage in trade.

• Wakanda specializes in computers and Amazonia specializes in cars and the two countries trade.

• Wakanda specializes in cars and Amazonia specializes in computers, but the two countries do NOT trade.

One country has a comparative advantage over another in producing a given good when it can produce at the

• lowest opportunity cost

• greatest speed

• lowest absolute cost

• greatest efficiency

Which statement BEST describes Georgia's role in the national and international economy?

• Georgia is primarily an agricultural state, producing crops such as peanuts, peaches, and cotton for local use.

• Georgie supports multinational corporations, such as Delta, Coke, and Chick-fil-A which do business around the US and the world.

• Georgia is primarily a producer of manufactured goods such as cars and computers that are sold in-state.

• Georgia supports mainly national corporations that provide food services, such as Waffle House, Arby's and Chick-fil-A.

Country A has a comparative advantage in producing clocks. Country B has a comparative advantage in producing pillows. How can the 2 countries BEST take advantage of this situation.

• Country A and B can impose tariffs on each other's products to collect more taxes.

• Countries A and B can specialize and trade with each other.

• Country A can stop producing clocks and import all needed products from Country B.

• Country B can stop producing pillows and import all needed products from Country A.

Canada has large open prairies and a temperate climate. Singapore is a small, densely populated island nation with an excellent education system and strong technology industry. What situation would benefit both countries the MOST?

• Canada specializes in growing wheat and Singapore manufactures cell phones and they engage in trade.

• Singapore specializes in growing wheat and Canada makes cell phones and they engage in trade.

• Both produce cell phones and impose trade barriers on each other.

• Both countries grow wheat and make cell phones and refuse to trade with each other.

Domestic auto manufacturing companies in the US are struggling due to foreign competition. How can the US government help?

• The government should implement quotas to lower the cost of labor and capital goods for the automakers.

• The government should implement subsidies to help the domestic businesses lower the price of their cars and become more competitive.

• The government should implement subsidies to limit the amount of foreign cars imported into the U.S.

• The government should impose a tariff on the imported cars, forcing the Japanese and German governments to pay for these vehicles.

A country has an absolute advantage in producing a good when it can produce it

• at a lower cost than any other country can produce it. (Do it best)

• for more revenue than any other good it produces.

• for more revenue than another other country.

• with less capital and labor than other countries.

This Georgia institution serves over 100 million people per year and provides service to 45 countries and 150 US cities. It is....

• Port of Savannah

• Port of Brunswick

• Hartsfield-Jackson International Airport

• US Center for Disease Control

The state of Georgia has over 70 consular offices from countries around the world. What does the presence of consular offices tell us about Georgia's role in the international economy?

• Georgia is primarily focused on domestic economic issues.
• Georgia has no significant role in international trade.
• The consular offices indicate a lack of foreign investment in Georgia.
• Georgia plays a vital role in the international economy as a hub for trade and diplomacy.

Why would a nation enact economic barriers to trade?

• To increase foreign competition and lower prices
• To promote international cooperation and trade agreements
• To protect domestic industries and jobs, generate revenue, and ensure national security.
• To enhance cultural exchange and tourism opportunities