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11 Cards in this Set
- Front
- Back
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What is trade and specialization? |
Not every country can produce the goods and services it needs so they specialize in producing a good or service that they can produce most efficiently,they can then trade that product for goods and services they need which is a good way to build a profitable economy and earn money to buy what it needs |
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What does Saudi Arabia specialize in? |
Production of oil and gas |
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What are trade barriers? |
Anything that slows down or prevents one country from exchanging goods with another |
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What are tariffs? |
Tax placed on goods when they are imported into one country from another |
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What is the purpose of tariffs? |
Make imported goods more expensive than the similar item created locally |
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What is a protective tariff? |
Protects local manufactures from competition |
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What is a quota? |
Different way of limiting the amount of foreign goods that can come into a country |
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What does a quota do? |
Sets a specific amount of particular goods that can be imported in a certain time frame |
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What is an embargo? |
When a country announces that it will no longer trade with another country in order to isolate the country and cause problems with that country's economy |
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What does OPEC stand for? |
Organization of petroleum exporting countries |
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What does OPEC do? |
Created in 1960 by countries with large oil supplies,countries wanted to work together to regulate the supply and price of oil exported to other countries(Kuwait,Iraq,Saudi Arabia,Iran,and Venezuela) continue to decide how much oil they will produce and that determines the price on the world market,basic principles of supply and demand |
