Economics: International Trade Worksheet-Chapter 18
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
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.?