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AP Human Geography
Unit 7: Industrial and Economic Development Patterns and Processes
7.6 Trade and the World Economy
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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