Economics International Trade Worksheet-Chapter 18

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					Economics: International Trade Worksheet-Chapter 18

I. Vocabulary

Import                Specialization                       Balance of Trade
Export                Comparative Advantage                Trade Deficit
Tariff                Absolute Advantage                   NAFTA
Quota                 Multinational Corporations           GATT
Embargo               Exchange Rate                        WTO
                      Free Trade Advocate

II. Answer the following:

1. Why do countries trade?
2. What are the benefits of international trade?
3. What are the many barriers to trade? List and explain the economic, political, ethical
and moral dilemmas and changes of international trade?
4. Explain how a person who believes challengers in free markets and another person
who believes in tight trade restrictions can both defend their positions as a person who
wants to protect American jobs?
5. How can the U.S. Compete with countries who pay very low wages and/or allow
“slave” labor?
6. Who benefits from free trade? Who gets hurt? What is the answer? (Think winners and
7. How do other countries react when the U.S. impose trade restrictions?
8. What kind of economic relationships has the U.S. had with Cuba since Castro took
over in 1959? What kind should we have? Who are the winners and loser?
9. What does “Made in America” mean in today’s world?

III. Textbook Help

1. Read Chapter 18
2. Read summary on pg 491
3. Do the vocabulary exercise on pg 492
4. Read Chapter 20 and answer the following:
       What is the responsibility of the U.S. toward developing countries?
       What are the opportunities for the U.S.?