International Trade – Flashcards
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Which is the best example of opportunity cost?
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NOT A country that chooses to invest in manufacturing and agriculture.
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In regard to trade, the United States
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imports and exports goods and services.
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Which is the best example of a country that is dependent on other countries?
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a country that has little fertile soil
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Which is an example of a country that is overly dependent on another country for critical goods and services?
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a country that imports all its oil
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How does international trade best benefit specialization?
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A country can make and sell goods affordably and buy goods it cannot make.
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Why would a country want to establish absolute advantage?
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to produce goods more efficiently than other countries
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Which statement best describes how globalization is affecting the world?
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The world is becoming more globalized and connected.
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A country that makes a product more inexpensively and efficiently than another country has
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an absolute advantage.
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What role does competition play in international trade?
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It drives down prices for consumers.
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Which region specializes in diamonds?
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Sub-Saharan Africa
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The United States is said to have an absolute advantage in producing food compared with Japan. What does that mean?
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It produces food more efficiently than Japan.
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It takes brothers John and Dan the same amount of time each to clean the room they share, but John can mow the lawn faster than Dan. Which action would give them a comparative advantage?
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if John mowed the lawn and Dan cleaned their room
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A company in Maine sends lobsters to France. What is this an example of?
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exporting
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The Middle East is best associated with which internationally traded product?
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oil
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Which situation might cause a country to specialize?
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wheat production in a region with fertile soil
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Why does the US import oil?
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because it does not produce enough oil
