Unit 1 Chapter 3

Essential Outcomes

1. Apply the concepts of Economic Systems and Principles by:Naming and applying the Four Basic Economic Systems (Market,

Traditional, Command, and Mixed) to the global economy (Chapter 1)

Applying concepts of competition, scarcity, and supply and demand to the effect on price and quantity (Chapter 2)

Comparing and contrasting embargos, tariffs, and quotas to economic situations (Chapter 3)

Identifying the differences between the World Trade Organization, GATT and NAFTA (Chapter 3)

Connecting key terms in the chapter with application (All Chapters) with 85% accuracy

1. WHAT ARE IMPORTS?

Products or services purchased from another country.

2. WHAT ARE EXPORTS?

Products or services sold to another country.

3. WHAT ARE TRADE BARRIERS?

Measures that governments introduce to make imported goods less competitive than locally

produced goods.

4. WHAT ARE TRADE RESTRICTIONS?

Government imposes restrictions on the free international exchange of goods or services

5. WHAT IS THE DIFFERENCE BETWEEN TRADE BARRIERS & TRADE

RESTRICTIONS?

Government imposes limits on imported

goods or services so that local producers

can compete.

Government sets boundaries on the free international

exchange of goods & services.

6. WHAT ARE THE THREE TRADE RESTRICTIONS OR TRADE BARRIERS?

7. WHAT IS TRADE TARIFFS?

A tax put on goods imported from abroad.

8. WHAT IS TRADE QUOTAS?

A limit on the amount of goods that can be imported into a country.

9. WHAT IS TRADE EMBARGO?

Stops exports or imports of a product or group of products to or from another country.

10. WHAT IS THE WTO?

Global international organization dealing with the rules of trade between nations.

11. WHAT ARE WTO AGREEMENTS?

The actual rules setting conditions on trade between nations.

12. WHAT IS GATT?

WTO’s principal rule-book that contains the rules for trading.

12. WHAT IS NAFTA?

American Free Trade Agreement which has created the largest free trade area and richest market in the world.

13. WHAT COUNTRIES ARE INCLUDED IN NAFTA?

Canada, U.S. and Mexico.

14. WHAT IS THE DIFFERENCE BETWEEN WTO & NAFTA?

WTO: 140 countries

around the world.

NAFTA: US, Canada, &

Mexico

Turn in your notes and then on to your project!!!