Unit 10: International Trade

What’s in This Chapter? Imagine a country that discourages international trade because it believes that trading with other countries leads to a loss of domestic jobs. Similarly, imagine that within this country there are...

Adam Smith According to the famous eighteenth century economist and “father” of economics, Adam Smith, the most important reason why nations trade is that it allows each country to specialize in making those products...

David Ricardo The well-known classical economist, David Ricardo (1772 – 1823; pictured), demonstrated that it is beneficial for each country to specialize, even if one country produces all products more efficiently. He...

International Trade Restrictions Tariffs, quotas, and other trade restrictions discourage imports of foreign products into a country. Tariffs are taxes on imported products. Quotas are limits on the amount of imported products....

Arguments to Support Protectionism Protectionism occurs when countries discourage imports of foreign goods and services by imposing tariffs, quotas or other trade restrictions. Five common arguments in support of protectionism...

Global Competition In an increasingly international world, the United States benefits from actively participating in trade with other countries. Even though the United States, because of its size, is relatively less dependent...

Economic Conditions in Less-Developed Countries Less-Developed Countries (LDCs), or so-called developing countries, are mostly found in the continents of Africa, South and Central America, and parts of Asia. They have...

  Time limit: 0 Quiz-summary 0 of 10 questions completed Questions: 1 2 3 4 5 6 7 8 9 10 Information This is a ten question multiple-choice quiz covering the material in this Unit. I hope you do well! You have already...