Econ Unit 9 Flashcards

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:

An absolute advantage. Signup and view all the answers

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

Exporting 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?

A country that imports all its oil. Signup and view all the answers

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

A country that has little fertile soil. Signup and view all the answers

Which statement best describes how globalization is affecting the world?

The world is becoming more globalized and connected. Signup and view all the answers

How does international trade best benefit specialization?

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

Why does the US import oil?

Because it does not produce enough oil. Signup and view all the answers

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

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

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

The currency has denominations. Signup and view all the answers

A currency shared by several countries in Europe is the _____

euro Signup and view all the answers

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

Shared the same currency. Signup and view all the answers

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

To take advantage of lower labor costs. Signup and view all the answers

Technologies that allow for instant worldwide communication include:

Mobile phones and Internet access. Signup and view all the answers

Global trade provides consumers with:

More options and lower prices. 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.