Cards (38)

    • The two main types of trade are international and domestic
    • What is domestic trade characterized by?
      Trade within a country
    • What does the term "trade" refer to?
      Exchange of goods and services
    • International trade occurs across national borders.

      True
    • Countries trade because of comparative advantage
    • What does interdependence mean in the context of trade?
      Reliance on other countries
    • What is the primary role of international organizations in global trade?
      Regulate and promote trade
    • The IMF provides financial assistance to countries to stabilize their economies
    • Trade blocs reduce tariffs and barriers among their members.
      True
    • What does comparative advantage focus on?
      Lower opportunity costs
    • Specialization under trade increases production efficiency.

      True
    • Major trade patterns involve flows between North America, Europe, and Asia
    • Match the trade organization with its function:
      WTO ↔️ Sets trade rules
      IMF ↔️ Provides financial assistance
    • Countries engage in trade because they have comparative advantages
    • Both international and domestic trade are vital for economic activity and growth
    • The International Monetary Fund (IMF) supports trade through financial stability
    • International organizations promote global trade by reducing trade barriers
    • A country with absolute advantage can produce goods more efficiently
    • Major trade patterns and agreements facilitate the exchange of goods, services, and capital
    • Globalization has led to greater economic interdependence between countries
    • Specialization allows countries to focus on producing goods they are best at.

      True
    • Match the trade type with its definition:
      International Trade ↔️ Exchange between countries
      Domestic Trade ↔️ Exchange within a country
    • The WTO resolves trade disputes between countries.

      True
    • What does the World Bank fund to enhance trade capacity?
      Development projects
    • Order the steps involved in trade according to economic theory:
      1️⃣ Countries specialize in production
      2️⃣ Countries engage in trade
      3️⃣ Trade leads to efficiency
      4️⃣ Trade reduces costs
      5️⃣ Countries access wider markets
    • Absolute advantage means a country can produce goods more efficiently than others
    • How does trade reduce production costs for countries?
      Lower input prices
    • NAFTA is a regional trade bloc that reduces barriers in North America.

      True
    • What is an example of international trade provided in the material?
      Exporting automobiles from Germany
    • Specialization encourages countries to focus on their strengths.
      True
    • Match the international organization with its key function:
      WTO ↔️ Sets rules for international trade
      IMF ↔️ Provides financial assistance
      World Bank ↔️ Funds development projects
      Trade Blocs ↔️ Form preferential trade agreements
    • The World Bank enhances trade capacity through infrastructure and policy reforms.

      True
    • Match the economic theory with its definition:
      Comparative Advantage ↔️ Specialize in goods with lower opportunity costs
      Absolute Advantage ↔️ Produce goods more efficiently than others
    • Specialization leads to increased efficiency and productivity.

      True
    • The WTO aims to promote free and fair trade among its member countries.

      True
    • Globalization has shifted trade patterns, with emerging markets like China and India becoming more dominant.

      True
    • Globalization has opened up new markets for businesses, allowing them to expand their customer base
    • The expansion of global supply chains has contributed to environmental degradation.

      True