1. 7 th Grade Civics Miss Smith *pgs. 570-574 (21.4)

2.  Many countries __________ in producing certain kinds of _____ and services  Interdependence means that countries ________ on each other for different _____ and services

3.  Absolute advantage- country’s ability to _________ something more __________ than its trading partners  Comparative advantage- country’s ability to make a product more ___________  Opportunity cost- value of the next ______ alternative that is ______ __ when a country __________

4.  Trade barrier- ______ on the ________ of goods  Also called ______________  Protects domestic jobs from foreign ____________

5.  Tariffs  Revenue tariffs raise money for the ___________  Protective tariffs encourage people to buy _____________ made products  Import ________ and Voluntary Restrictions  Embargoes  Bans trade with specific ___________

6.  Reciprocal Trade Agreements  Reduce ___________ _________  Regional Trade Agreements  ________ or eliminate trade ________  International Trade Agreements  World _____ Organization (WTO)  The North American ____ Trade Agreement (NAFTA)

7.  Reasons people support protectionism:  To _______ industries and jobs  To maintain high ______  To protect national __________  So as not to support countries with ____ ______ _____  Reasons people oppose protectionism:  Could harm the ________  Lead to price ___________

8.  Balance of trade- difference between the value of a country’s _______ and its _______  Trade surplus- when a country _____ more than it ____  Trade deficit- when a country ______ more than it _____