be chapter 10 review

All of the following are reasons to restrict trade except

foreign companies' products may be inferior to those produced at home.

Which of the following statements is not a reason why world trade is sometimes necessary?

A country's government may make the production of a certain good illegal.

Which of the following is not an example of world trade?

A grocery store chain in North Carolina buys avocados from a farm in California.

Which of the following is not an example of a comparative advantage?

Canada growing bananas

If a country has a trade deficit with one country, it cannot have a trade surplus with another.

False

Since the 1970s, world trade has decreased due to nations becoming more self-sufficient.

False

NAFTA stands for

North American Free Trade Agreement.

At the heart of most trade disputes is whether there should be limits on trade or whether trade should be unrestricted.

True

Exchange rates change from day to day and country to country.

True

Trading goods and services allows countries to meet their individual wants and needs as well as to help their own economy.

True

World trade has increased since the 1970s due to

better transportation and telecommunication.

Another name for money is

currency

The production, purchase, and sale of goods and services within a country is known as

domestic trade.

The development of the global economy is often referred to as

globalization

A balance of trade

is the difference in value between a country's imports and exports over a period of time.

If the value of the U.S. dollar goes up compared with the euro,

it will take fewer dollars to buy Italian leather.

To reduce limits on trade,

nations form trade alliances.

Trade disputes occur when

nations restrict trade with each other.

Free trade

opens up new markets in other countries.

To specialize means

to focus on a particular activity, area, or product.