1. Why does specialization make trade between countries easier?
A. Countries can produce what they make best and trade with others for
what they need.
B. The competition between countries will not exist.
C. A country's economy will never go through a difficult time if they
specialize in a good.
D. There will always be a steady supply of goods on the market so trade is
not needed.
2. Why has Japan specialized in the area of technology?
A. It has a poorly educated population.
B. It has few natural resources and little farmland.
C. The money earned is used to support the military.
D. The country has little in the way of fishing.
3. If North Korea's government puts a limit on how much Vietnamese rice
it will import this year, what trade barrier is this?
A Tariff
B. Quota
C. Embargo
D. Free trade
4. What is the purpose of a quota?
A. to artificially raise the price of a foreign good in order to make a local
good cheaper
B. to punish rogue nations for safety reasons
C. to block trade with another nation
D. to place a limit on imported goods so that citizens will buy more local
goods
5. What is a main reason for people to exchange currency?
A. to have foreign money
B. to use American dollars to trade
C. to make more money by trading currencies
D. to buy and sell goods and services with other countries