Why Do People Trade

Question 1

Who would use the barter system

Answer 1

Explorers and pilgrims would barter to get things needed for their journey.

Question 2

What are 5 key elements of bartering?

Answer 2

1. Getting goods and services in exchange for your own goods
2. Barter system can be done globally
3. Don’t have to use money
4. Barter system nowadays is easy to exchange
5. You can trade 1 of your things for 10 of their things.

Question 3

What are 2 advantages of factories that make processed goods

Answer 3

Can sell their products for more money than just the raw material.
Supplying jobs to people.

Question 4

What does trading mean?

Answer 4

Buying and selling of gods

Question 5

What are products?

Answer 5

Things that a country has. Things you can buy at a shop.

Question 6

What are services?

Answer 6

Something that someone does for others for money Eg: hairdresser

Question 7

What is importing?

Answer 7

A country buys products from another country

Question 8

What is exporting?

Answer 8

When a country sells products to another country

Question 9

What is global trade?

Answer 9

Is buying and selling between countries.

Question 10

What are natural resources?

Answer 10

Materials made by the earth that humans can make into more complex products.

Question 11

Why do people trade?

Answer 11

Because they need or want goods and services that they don’t have.

Question 12

What does a country sell to another country and why?

Answer 12

Natural resource, like rice, as other countries do not produce rice. Services as well.

Question 13

How does a country that exports goods use the money it makes from these exports?

Answer 13

By making their country better like fixing the roads.

Question 14

What does South Africa have a lot of, to produce steel?

Answer 14

Coal , iron ore and factories to make it.

Question 15

What is a trading bloc?

Answer 15

A group of countries that agree to have free trade with no taxes

Question 16

Why does a country sometimes choose not to produce everything in its own country?

Answer 16

These goods can be produced in another country at a lower cost and will be cheaper for the country to import.

Question 17

Name 3 products that South Africa imports?

Answer 17

Inedible raw materials
Chemicals
Machinery

Question 18

Name 3 examples of what South Africa exports?

Answer 18

Metal ores
Gold
Maize

Question 19

Define the barter system.

Answer 19

It was used before money was created. People required certain goods would exchange them for other goods that person required.