Econ Unit 9 Flashcards
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Questions and Answers

In regard to trade, the United States:

  • Imports goods and services only.
  • Exports goods and services only.
  • Does not import or export goods and services.
  • Imports and exports goods and services. (correct)
  • What role does competition play in international trade?

  • It does away with the need for investment.
  • It drives down prices for consumers. (correct)
  • It results in higher prices.
  • It discourages imports.
  • The Middle East is best associated with which internationally traded product?

  • Manufactured goods
  • Oil (correct)
  • Electronics
  • Bananas
  • A country that can produce a good more efficiently than another country has:

    <p>An absolute advantage.</p> Signup and view all the answers

    A company in Maine sends lobsters to France. What is this an example of?

    <p>Exporting</p> Signup and view all the answers

    Which is an example of a country that is overly dependent on another country for critical goods and services?

    <p>A country that imports all its oil.</p> Signup and view all the answers

    Which is the best example of a country that is dependent on other countries?

    <p>A country that has little fertile soil.</p> Signup and view all the answers

    Which statement best describes how globalization is affecting the world?

    <p>The world is becoming more globalized and connected.</p> Signup and view all the answers

    How does international trade best benefit specialization?

    <p>A country can make and sell goods affordably and buy goods it cannot make.</p> Signup and view all the answers

    Why does the US import oil?

    <p>Because it does not produce enough oil.</p> Signup and view all the answers

    Which of these statements most accurately describes currencies in North America?

    <p>Each country in North America uses its own currency.</p> Signup and view all the answers

    Which statements accurately describe a country's currency? (Select all that apply)

    <p>The currency has denominations.</p> Signup and view all the answers

    A currency shared by several countries in Europe is the _____

    <p>euro</p> Signup and view all the answers

    There would be no separation between one country's economy and another's if the entire world:

    <p>Shared the same currency.</p> Signup and view all the answers

    Which best explains why a US corporation would open a factory in China?

    <p>To take advantage of lower labor costs.</p> Signup and view all the answers

    Technologies that allow for instant worldwide communication include:

    <p>Mobile phones and Internet access.</p> Signup and view all the answers

    Global trade provides consumers with:

    <p>More options and lower prices.</p> Signup and view all the answers

    Study Notes

    International Trade Basics

    • The United States engages in both imports and exports of goods and services.
    • Competition in international trade lowers prices for consumers.

    Key Products in Trade

    • The Middle East is predominantly known for its oil exports.

    Economic Advantages

    • A country that produces a good more efficiently than another has an absolute advantage.
    • Examples of international trade include exporting, such as a Maine company's lobsters sent to France.

    Dependence on Imports

    • A country that imports all its oil is overly dependent on another country for critical resources.
    • Nations with limited fertile soil are typically dependent on other countries for agricultural products.

    Globalization Impact

    • Globalization is making the world more interconnected, with increased trade between countries.

    Specialization and Trade Benefits

    • International trade allows countries to specialize, making goods affordably while importing those they cannot create efficiently.

    U.S. Oil Imports

    • The U.S. imports oil primarily because it cannot produce enough to meet domestic demand.

    North American Currencies

    • Each North American country maintains its own currency, rather than using a common one like the euro.

    Characteristics of Currency

    • Key features of effective currency include ease of divisibility, variable value, and differing denominations.

    Euro as a Shared Currency

    • The euro serves as a shared currency for several European countries, promoting easier trade.

    Global Economic Integration

    • If the entire world adopted a single currency, it would eliminate economic separations between countries.

    Motives for International Operations

    • U.S. corporations often open factories abroad, particularly in China, to benefit from lower labor costs.

    Communication Technologies in Trade

    • Mobile phones and Internet access facilitate instant global communication, enhancing international trade efficiency.

    Consumer Benefits from Global Trade

    • Global trade increases consumer choices while also lowering prices for goods.

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    Description

    Test your knowledge on key concepts in international trade with these flashcards from Unit 9 of your economics course. Each card covers important terms and definitions related to imports, exports, and competition in the global marketplace.

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