1._ The difference between national and international trade is: International trade is the exchange of products, services and money across national borders. And national trade is the purchase and sale of products and services within a particular nation´s borders.
2._The three forms of International trade are trading services, international trade and trading capital.
3._Because the trade of products and services are within a particular nation´s borders.
4._As the productive nations gain wealth through their productivity, the consumer nations are forced to become productive themselves through the transfer of their capital to the productive nation.
Page 8
1._Domestic trade is the purchase and sale of products and services within a particular nation´s borders.
2._Trading capital is also the amount of money designated by a trader to pay the costs of foreign trade.
Page 10
1._What is the stronger a nation?
2._What is Trade surplus?
3._Is the imposition of trade barriers the only solution to meeting the international challenge?
4._ Why do the gvernments want to protect a domestic industry?
5._What are the forms of import tariffs?
6._What is specific tariff?
Answer of page 10 of Sara wiki
1._ What is necessary to survive in the fast changing economy?
A new way of thinking and an approach to doing business.
2._ Which would be a reason why the governments try to control the exports and imports of a country?
One reason is that a country enjoys an adventage if it exports more than it imports.
3._ Could be to be the remedy to beat the trade imbalance?
The remedy to beat the trade imbalance is to understand foreign cultures and business practices, and to provide competitive products and services.
4._What sometimes the governments wants to protect a domestic industry?
Because that industry provides employment for the population.
5._Why a quota has a different effect on the market?
Because it limits the number of items imported.
6._What referred to the author when he talks about multinational?
A large company that sets up production facilities in several different countries.
Page 14. Exercise A
1
2
3
Causes
The exchange rate may vary greatly due to demand.
Transportation costs increase or corruncy excahnge rates change.
If large amounts of exports are involved.
Countries have developed their economies, increased production of goods, and met market demands.
Effects
The price of currency is either rising or falling.
It may become cheaper to produce the product in the market country.
The increase of international trade.
Indictors
Due to
Checking on your understanding of the video:
What figures (data, numbers) does the narrator give to show the increase in international trade during the 35 year period from 1970 to 2004?
What countries have gained economic growth through international trade?
What is the pattern of trade described by the narrator?
What are the two types of approaches to trade named by the narrator?
What countries are given as examples of countries following this trade?
Page 22. Checking your understanding of the text.
1._Because individuals and firms have been able to produce more of certain goods and services than can be consumed at home. This prompted a seach for foreign opportunities to sell the excess production and Other reason is because individuals and firms have been able to sell goods or services to other countries at prices higher then the prices they can obtain domestically.
For example: Venezuela export petroleum for differents countries.
2._Nations import goods because goods or services thet are either essential to economic well-being or that consumers desire are simply not natturally available or cannot be produced at home; and, goods or services that satisfy domestic needs or wants can be produced more inexpensively or efficiently by other countries, and therefore sold at lower prices.
The example that use the author is the case of the United States, precisely because it comes closer to being self-sufficient than any other country. Coal, copper, iron, silver, and nickel are just a few of the natural resources the United States possesses in large quantities that other countries do not possess.But there are some economically essential items, such as tungsten and oil, which the Unit States either doesn´t produce at all or doesn´t produce in sufficient quantities to serve current needs at a rasonable price.
The import is also true of developing countries because they needs goods that they don´t produce, for example: México import meat of U.S.
3._The arguments does the author use to explain the reason the U.S continues importing oil is because the United States cannot now meet its oil consumption needs exclusively through domestically produced oil; as of 2007, the U.S. ranks third in total oil production (8,457,000 barrels/day), but also first in oil consumption (20,680,000 barrels/day).
In fact, since hurricanes Ktrina and Rita in 2005, U.S. oil production has been on the decline. As result, the United States today imports 59 percent of the oil it consumes. Most of these imports come from Sudi Arabia, Mexico, Canada, Nigeria, and Venezuela. In 2008, the United States imported 3.58 billion barrels of crude oil.
Page 25
1._ * Within the current account are credits and debits on the trade of merchandise, which includes goods such as raw materials and manufactured goods that are bought, sold or given away (possibly in the form of aid).
Services refer to receips from tourism, transportation, engineering, business service fees, and royalties from patents and copyrights.
Receipts from income- genarating assets such as stocks are also recorded in the current account.
2._ When combined, goods and services together make up a country´s balance of trade (BOT).
3._ In the financial account, international monetary flows related to investment in business, real estate, bons and stocks are documented. Also included are government-owned.
4._Assets is anything of value which is owned by a person or a company, and liabilities is an amount owed to a person or organization for funds borrowed.
Page 7. Answers
1._ The difference between national and international trade is: International trade is the exchange of products, services and money across national borders. And national trade is the purchase and sale of products and services within a particular nation´s borders.
2._The three forms of International trade are trading services, international trade and trading capital.
3._Because the trade of products and services are within a particular nation´s borders.
4._As the productive nations gain wealth through their productivity, the consumer nations are forced to become productive themselves through the transfer of their capital to the productive nation.
Page 8
1._Domestic trade is the purchase and sale of products and services within a particular nation´s borders.
2._Trading capital is also the amount of money designated by a trader to pay the costs of foreign trade.
Page 10
1._What is the stronger a nation?
2._What is Trade surplus?
3._Is the imposition of trade barriers the only solution to meeting the international challenge?
4._ Why do the gvernments want to protect a domestic industry?
5._What are the forms of import tariffs?
6._What is specific tariff?
Answer of page 10 of Sara wiki
1._ What is necessary to survive in the fast changing economy?
A new way of thinking and an approach to doing business.
2._ Which would be a reason why the governments try to control the exports and imports of a country?
One reason is that a country enjoys an adventage if it exports more than it imports.
3._ Could be to be the remedy to beat the trade imbalance?
The remedy to beat the trade imbalance is to understand foreign cultures and business practices, and to provide competitive products and services.
4._What sometimes the governments wants to protect a domestic industry?
Because that industry provides employment for the population.
5._Why a quota has a different effect on the market?
Because it limits the number of items imported.
6._What referred to the author when he talks about multinational?
A large company that sets up production facilities in several different countries.
Page 14. Exercise A
Checking on your understanding of the video:
Page 22. Checking your understanding of the text.
1._Because individuals and firms have been able to produce more of certain goods and services than can be consumed at home. This prompted a seach for foreign opportunities to sell the excess production and Other reason is because individuals and firms have been able to sell goods or services to other countries at prices higher then the prices they can obtain domestically.
For example: Venezuela export petroleum for differents countries.
2._Nations import goods because goods or services thet are either essential to economic well-being or that consumers desire are simply not natturally available or cannot be produced at home; and, goods or services that satisfy domestic needs or wants can be produced more inexpensively or efficiently by other countries, and therefore sold at lower prices.
The example that use the author is the case of the United States, precisely because it comes closer to being self-sufficient than any other country. Coal, copper, iron, silver, and nickel are just a few of the natural resources the United States possesses in large quantities that other countries do not possess.But there are some economically essential items, such as tungsten and oil, which the Unit States either doesn´t produce at all or doesn´t produce in sufficient quantities to serve current needs at a rasonable price.
The import is also true of developing countries because they needs goods that they don´t produce, for example: México import meat of U.S.
3._The arguments does the author use to explain the reason the U.S continues importing oil is because the United States cannot now meet its oil consumption needs exclusively through domestically produced oil; as of 2007, the U.S. ranks third in total oil production (8,457,000 barrels/day), but also first in oil consumption (20,680,000 barrels/day).
In fact, since hurricanes Ktrina and Rita in 2005, U.S. oil production has been on the decline. As result, the United States today imports 59 percent of the oil it consumes. Most of these imports come from Sudi Arabia, Mexico, Canada, Nigeria, and Venezuela. In 2008, the United States imported 3.58 billion barrels of crude oil.
Page 25
1._ * Within the current account are credits and debits on the trade of merchandise, which includes goods such as raw materials and manufactured goods that are bought, sold or given away (possibly in the form of aid).
2._ When combined, goods and services together make up a country´s balance of trade (BOT).
3._ In the financial account, international monetary flows related to investment in business, real estate, bons and stocks are documented. Also included are government-owned.
4._Assets is anything of value which is owned by a person or a company, and liabilities is an amount owed to a person or organization for funds borrowed.
Page 26