STUDYDYDYDYDY Flashcards
What is voluntary trade?
Voluntary trade occurs when different countries choose to engage in trade with one another.
Why do countries trade goods?
Countries trade goods because no country has all the resources it needs.
What is specialization?
Specialization is when a country focuses on producing certain goods efficiently.
How does specialization benefit trade?
Specialization increases trade because a country can get what it needs at a lower cost when produced by someone who specializes in that product.
What are natural trade barriers?
Natural trade barriers include geographical features such as mountains, bodies of water, deserts, and rainforests.
What are political trade barriers?
Political trade barriers are policies set by a government to regulate trade.
What is an example of a country specializing in a specific industry?
Israel specializes in the diamond industry, importing rough diamonds and exporting cut and polished ones.
What do trade barriers aim to achieve?
Trade barriers are usually meant to help domestic producers compete in the world marketplace.
What is an example of a country with a diversified economy?
Turkey has a more diversified economy and exports coal and food to Europe.
