Chapter 16 International Trade Name: ( )
1. The buying and selling of goods and services among different countries is
( ) trade.
2. A good or service bought in the US but produced in another country is a
US ( ).
3. A good or service produced in the US and sold in another country is a US (
4. Exports and imports as percentages of US GDP generally ( ) over the
last few decades.
5. The majority of US trade is with ( ) nations in North America, Europe
6. The most important trading partners of the US are ( ), ( ) and the
countries that make up the ( ) ( ).
7. Focusing individual resources on a small range of tasks to improve output
is called ( ).
8. For this to work, it is necessary to have a ( ) where individuals can
exchange what they ( ) for goods they ( ).
9. When an area or country can produce goods more cheaply or efficiently it
has a lower ( ) cost.
10. Countries with this lower cost are considered to have a ( ) ( ) in the
production of these goods or services.
11. A specific example that illustrates this would be ( ) (good) from ( )
12. That is, if Brazil can produce one pound of coffee by giving up less wheat
production than Argentina, Brazil has a ( ) ( ) in the production of
13. To receive the full benefits from production according to comparative
advantage, there must be ( ) ( ) among nations.
14. The philosophy that free trade is not in the best interest of a nation and
that trade should be restricted is ( ). There are several trade
a. A tax on an import is a ( ).
b. A limit on the quantity of a good that can enter a country is a ( ).
c. An outright ban on trade in a particular product with another nation is an
15. From most severe to least severe, these restrictions would be ( ), ( ),
then ( ).
16. Arguments in favor of free trade:
a. allows greater ( )
b. provides ( ) selection of goods and services
c. keeps ( ) lower.
17. Arguments for protectionism:
a. shelters ( ) from foreign competition
b. increases domestic ( ) and ( ) by limiting competition.
c. allows ( ) which reduces dependence on foreigners.
d. this may be important for national ( ).
18. France gave its wine producers money for each bottle of wine exported.
This money is called a ( ).
19. Fuji was accused of selling its film in the US at a price below its cost, and
at a cost below its price in Japan. This practice is called ( ).
20. ( ) is a group that has worked on tariff reductions.
21. In a trading bloc like the European Union, there are no ( ) between
22. ( ) is the name of the trading bloc that includes the US.