SEM 2 1.05

Which of the following allows the free movement of goods and services among Canada, the United States, and Mexico:

NAFTA

What does a nation develop when its imports are greater than its exports

Trade deficit

The U.S. produces widgets faster and more cheaply than Switzerland does. In this example, the US has an

absolute advantage

Levels of inflation and unemployment are factors that affect __________ in the world market.

competition

A country with weak currency value tends to

decrease its imports and increase its exports.

A large trade deficit in a nation often leads to

fewer job opportunities

Japan and the U.S. buy and sell each other's goods and services. This is an example of

global trade

A country can often produce goods more cheaply than other nations because it

has easy access to raw materials.

which of the following is the most likely policy that a government would follow to avoid a trade deficit

protectionism

A nation that exports more than it imports maintains a

trade surplus

How do nations track the flow of money coming in and going out of their countries

Balance of Payments

Which of the following terms describes the difference between the exports and imports of a nation

Balance of trade

Which of the following occurs when a country can produce goods at a relatively more efficient rate than another country

Comparative advantage

Some businesses sell their goods and services to individuals, businesses, or governments in other countries. An example of

Exporting

A business that buys goods and services from a company in another nation is performing which of the following activities:

Importing

Which of the following is a likely result of a strong or highly valued currency

Increased Imports

Which of the following is a benefit of global trade:

An improved standard of living

Which of the following are methods that countries use to control their trade with other nations:

Quotas, Tariffs, and subsidies

If a government wants to reduce the volume of imports allowed into its country it could limit the number of___________ issued to foreign exporters

licnese