International Trade Content

When did nations begin to trade more freely?

After World War II

What are two effects of economic globalization?

Economic globalization causes change Economic globalization opens new markets Economic globalization creates new opportunities Economic globalization heightens competition Economic globalization creates "winners" and "losers"

Why did the economic crisis that began in 2008 spread throughout the world?

Economies of the world are dependent upon one another.

What is free trade?

Exchanging goods (to other countries) without barriers of any kind.

Why is food aid to developing countries a popular policy in the United States?

Food aid is a popular policy because the US often produces more food than it can sell. The extra food is bought by the government and given away as aid. This allows the US to give aid to countries in need and it helps US farmers.

Some people say free trade has not been good for the US. Give two reasons why they say this.

In the last 20 years US incomes have been inconsistent. The gap between the rich and the poor in the United States has widened.

List ways that growth in international trade has affected US citizens.

International trade has given US consumers a wider range of products to buy. Increased competition has forced producers to improve the quality of goods and hold down prices. US workers have experienced ups and downs in wages. The gap between rich and poor in the US has widened.

Describe three facts about the WTO.

It's primary purpose is to make trade more fair. It began in 1995 and has 157 members as of 2012. It oversees trade agreements between its members and negotiates disagreements if they come up.

In the United States, which types of jobs are most commonly "outsourced" to other countries?

Manufacturing jobs are most commonly outsourced, for example factory jobs in the textile industry.

What are some consequences of the global economic crisis that began in 2008?

Many homeowners could not afford their mortgage and lost their homes. Many nation's economies crashed. Governments had to 'bail out' businesses to save the economy. Unemployment went up sharply.

What are the "four tigers" or "Asian tigers"?

Nations with highly successful economies.

Why do people trade?

People trade because they can gain or profit from it.

What is protectionism?

Protectionism is an economic strategy to limit trade where governments create barriers to limit or stop trade to help domestic businesses.

How can governments protect domestic businesses in the country?

Tariffs Subsidies Import Quotas

What is globalization?

The economic, political, cultural, and social transformations happening throughout the world. An increased interdependence among nations.

In 2004 the United States generated more new jobs than Germany, Japan, Great Britain, Canada, and France combined. True or False?

True

What is dumping?

When companies, subsidized by governments, flood markets with goods priced far below market value. This is unfair to companies that are not subsidized.

Which nations make up NAFTA?

a) Canada b) United States c) Mexico

What are two criticisms of the WTO?

a) The WTO processes are too secretive and undemocratic. b) Some (richer) countries have more power than others in the WTO and this creates a gap between industrialized and developing countries.

According to economists, why do some countries benefit more from trade than others?

a)Some countries happen to produce (or have an absolute or comparative advantage) types of goods that are in demand on the global market. b)Some countries have multiple exports they can sell (the exports are 'diversified') so if one export is not in demand, they can sell another. c)Some countries get foreign investments and can send this money to key parts of their economy (for example, education, research and development, technology).

What nations make up the "four tigers" or "Asian tigers"?

a)South Korea b)Taiwan c)Hong Kong (now reunited w/ China) d)Singapore