Study sets, textbooks, questions
Upgrade to remove ads
Social Studies Review Set - Everything you need to know for tomorrow's quiz(2)
Terms in this set (58)
What is Trade?
the voluntary exchange of goods and services among people and countries
Why is Location a huge part of trade?
It is much easier to import and export with a neighboring country than one half way across the world.
What are imports?
goods a country buys
What are Exports?
goods a country sells
What is Specialization?
Specialization is when a country focuses on a narrow range of products/services that can be produced most efficiently and cost effectively.
What does Mexico specialize in?
petroleum extraction and refining.
What does Costa Rica specialize in?
What does Argentina specialise in?
Beef and Leather processing
What does Cuba specialize in?
What is a Trade Barrier?
Any activity that slows or blocks trade activity with another nation.
What is a Sanction?
The act of economically punishing another nation.
What is a Boycott?
The refusal to purchase goods/services from a specific country or company
What is a Tariff?
A tax on imports
Why do countries put up Tariffs?
Too much imports from another country hurts the country's economy
What is a Quota?
A specific number limit placed on the number of imports that may enter a country. Think of quota as a number limit on a good or service.
Why will a country put up Quotas?
A country may put up a quota against imports to help their own country's imports compete in certain markets.
If a country imports too much of an item, it could have detrimental effects on its own economy.
Many people would lose their jobs.
What are Embargoes?
Embargoes are a government order stopping trade with another country.
Why do countries put up Embargoes?
If a country does not agree with the conduct or actions of another country, an embargo can be placed against the offending country to help persuade them to change.
The purpose of an embargo is to hurt the economy of the offending country.
When do Embargoes not work
Embargo's do not work if the import you are banning has other buyers from around the world.
How many unique currency are there in South America?
What is the currency of Mexico?
What is the currency of Brazil?
What are Exchange Rates?
They are used to determine how much one nation's currency is worth in terms of another's.
Who is in NAFTA?
US, Canada, Mexico
What did NAFTA do?
establish one of the biggest free-trade zones in the world between the US, Canada, and Mexico.
What does NAFTA stand for?
North American Free Trade Agreement
What was NAFTA's goal?
to increase multinational trade and economic cooperation across North America, as well as raise the collective standard of living.
What is Standard of Living?
the level of wealth and material comfort available to a people.
What did NAFTA eliminate?
Tariffs between their members
What did NAFTA increase?
NAFTA helped increase Foreign Investment and Oil Exports from Mexico to the United States
What negative effect did NAFTA have on the U.S.?
NAFTA outsourced numerous manufacturing jobs from the United States to Mexico particularly in the electrical appliance and textile industries.
What is Outsourcing?
the transfer of work/production from one country to another where the cost of labor/manufacturing is cheaper.
What negative effect did NAFTA have on Mexico?
NAFTA cut numerous farm-related jobs (and locally-owned farms in general) in Mexico due to cheaper agricultural products coming into the country from the U.S. NAFTA also damaged the Mexican Environment by Canadian mining companies looking to extract shale oil.
is known as the voluntary exchange of goods and services among people and countries.
also has a huge part of trade.
are goods a country buys.
are goods a country sells.
focuses on a narrow range of products/services that can be produced most efficiently and cost effectively.
In North America, Mexico specializes in petroleum extracting and refining.
In Central America, Costa Rica specializes in ecotourism.
In South America, Argentina specializes in beef and leather processing.
In the Caribbean, Cuba specializes in sugar refining.
is any activity which slows or outright blocks the free exchange of good and services between nations.
is the act of economically punishing another nation. Rather than going to war.
is the refusal to purchase good/service from a specific company or country.
Think of as a tax on imports.
Think of as a number limit on a good or service.
are a government order stopping trade with another country.
How many unique currencies are in use in South America today?
14 currencies are in use, so exchange rates and a currency exchange system must exist.
What is the currency in Mexico?
What is the currency in Brazil?
used to determine how much one nation's currency is in terms of another's.
One U.S. dollar is worth how many Brazilian reals?
One U.S. dollar is worth 3.17 Brazilian reals.
NAFTA (North American Free Trade Agreement)
North American Free Trade Agreement, signed in 1994 by the governments in Canada, the United States and Mexico, established one of the world's largest free trade zones, eliminating import tariffs and therefore increasing trade. Goal was to increase multinational trade and economic cooperation across North America and raise collective standard of living.
NAFTA helped increase ____ exports from ___________ to the United States, thereby decreasing ___________ dependence on Mideast oil imports.
NAFTA helped increase oil exports from Mexico to the United States, thereby decreasing American dependence on Mideast oil imports.
The cost of goods was lowered by NAFTA, creating higher profits, increasing ________ _______________ within the three nations.
The cost of goods was lowered by NAFTA, creating higher profits, increasing foreign investment within the three nations.
Negatives of NAFTA
outsourced numerous manufacturing jobs from the U.S. to Mexico, particularly in the electrical appliance and textile industries. Cut numerous farm-related jobs and locally-owned farms in general in Mexico due to cheaper agricultural products coming into the country from the U.S. Mexican environment damaged from Canadian mining companies looking to extract shale oil.
transfer of work/production from one country to another where the cost of labor/manufacturing in cheaper.
How can developing countries develop more rapidly?
What effects supply/ demand of currency?
true or false, a swiffer floor sweeper and a broom would have a positive cross price elasticity of demand?
the value of a countrys exports is listed in its balance of payments account as
Recommended textbook explanations
Principles of Economics
N. Gregory Mankiw
Economics: Concepts and Choices
Principles of Economics
N. Gregory Mankiw
Glencoe Marketing Essentials, Student Edition
Sets with similar terms
7-1 Ch. 16 quiz
Module 2 Topic 4 Test Review
Trade Barriers/Global Economy
Other sets by this creator
7th Grade Unit 5 Inferences Key Terms
Chapter 6 Quiz - PS: Thanks to Nathan White for th…
Physical Geo O' Africa Test Quizlet
Every Science Quizlet this year
Other Quizlet sets
Chapter 7 Section 2
Personal Financial Statements
Civ Pro 8: Multiparty Litigation
The government raises taxes by $100 billion. If the marginal propensity to consume is 0.6, what happens to the following? Do they rise or fall? By what amounts? a. Public saving, b. Private saving, c. National saving, d. Investment.
What can Americans do to influence the economic goals of the nation?
Why is a monopolist a price maker rather than price taker?
In a 1973 magazine interview, Milton Friedman said, "What kind of society isn't structured on greed? The problem of social organization is how to set up an arrangement under which greed will do the least harm; capitalism is that kind of a system." Do you agree with Friedman that societies are structured on greed and that capitalism can reduce the harm caused by greed? Explain your answer.