Trade 1

Question 1

Trade

Answer 1

buying and selling on national or international markets

Question 2

GDP Gross Domestic Product

Answer 2

The total monetary or market value of alle the finished goods within a country in a specific time period

Question 3

GNP Gross national product

Answer 3

Is an estimate of total value of all the final products and services in a given period

Question 4

When does international trade occur

Answer 4

Country has unique raw materials
Country produces more than necessary for own use
Production costs differ

Question 5

Opportunity cost

Answer 5

What you could have done in the same time that you produced the product

Question 6

Comparative cost differences

Answer 6

Labour and capital division
Development
Geographical location
Protective measures by the government

Question 7

Globalization

Answer 7

The world is getting more connected

Question 8

Globalization depends on 4 primary forces

Answer 8

Industrial revolution
Communication technology
Transportation
Reduction in protectionist trade policies