Chapter+15

=Chapter 15: International Trade=

media type="custom" key="579489"


 * Can you:**
 * Describe differences between an import and export?
 * Differentiate and identify absolute and comparative advantage?
 * Describe the relationship between productivity and income?
 * Understand the ways to limit trade between two countries?
 * Describe 5 reasons why this might be done?
 * Explain the major arguments people can give FOR and AGAINST free, international trade?
 * Explain how a country can have a negative trade balance, but an balance of payments?
 * Describe why exchange rates exist, and offer reasons for them?

Extra Credit: //(Answer each question in 3-4 COMPLETE sentences).//

 * 1) Explain why economists would agree or disagree with the following statement: //"A nation gains more from trade if its exports rise and its imports fall."//
 * 2) When nations produce and trade according to comparative advantage, they produce bigger economic "pies." Production and incomes can then rise in the trading nations. How is this possible?
 * 3) Today, many people worry that the United States will lose by trading with poorer nations in which workers receive much lower wages. Do you think that such a fear is justified? EXPLAIN.
 * 4) Explain why an exchange rate is a price determined by demand and supply.