UNIT 7 REVIEW GAME International Trade Basics Free Trade & Protectionism Globalization Issues The United Nations & Internationalism 12345

When a country exports more than it imports. Trade Surplus (or) Favorable Balance of Trade

When a country imports more than it exports. Trade Deficit (or) Unfavorable Balance of Trade

The idea that countries are becoming more reliant on one another. Global Interdependence

A limit on the # of goods that come into a country. Quota

What is a tariff? A tax placed on an imported good.

The idea that a country should place limits or restrictions on trade. Protectionism

Free Trade = Increased Competition. What are (2) benefits of this? Lower Prices Better Quality

This is a trade agreement between the US, Canada, and Mexico. NAFTA

Something that limits or prevents trade. Trade Barrier

An organization that tries to limit barriers, and promote trade among member nations. WTO

Why have many manufacturing jobs left the US, and gone to other countries? Lower Labor Costs

What is conservation, and how does it enter into the global trade debate. Trying to use resources more wisely. Some argue that conservation leads to slower economic growth.

What is the relationship between the price of products and protectionism. Protectionism leads to higher prices.

The US has a large _______ in terms of its balance of trade. Trade Deficit (or) Unfavorable balance of trade

The idea that a country can produce a product at a lower cost or opportunity cost than another nation. Comparative advantage

What is the purpose of the United Nations. To encourage peace or prevent war.

What type of government generally protects the people’s human rights best? Democracy

What type of economic system has the highest per capita GDP? Market Economy

Countries that are in the process of becoming more industrialized are called… Developing Countries (or) 2 nd World Countries

The process of moving factories to countries that have lower labor costs. Outsourcing