Voluntary Trade

Why must people exchange currencys

Because of nationalism, absence of control of economy, not everyone wants the same type of currency(looks wise)

What is an embargo

A political barrier to trade where nations refuse to trade with a country at all.

Why has the US placed several embargoes against Iran over the past 2 decades?

Due to Iran's involvement with terrorism

Who were the founding members of OPEC

Iran, Iraq, Saudi Arabia, Kuwait, and Venezuela

What is worth more- one US dollar/ One Turkish lira

One US Dollar

What does OPEC stand for

Organization of Petroleum Exporting Countries

What trade barrier restricts the quantity of an item that is brought into a country?

Quota

Give an example of specialization

Saudi Arabia, Iran, Iraq, and Kuwait specialize in oil production and export millions of barrels of oil every day.

What are two advantages to specialization?

Specialization is an efficient way to work, and the cost of items produced is lower.

What type of trade barrier involves adding a special tax on imported goods?

Tarrif

How did the UN punish Iraq when they invaded Kuwait in 1990?

They placed an embargo on Iraq, only allowing it to export enough oil to buy its citizens' food.

What is OPEC's function

To control the price and supply of oil