What do we know about trade?

1

• What do we know about trade?
• International trade?
• Exports/Imports?

2
Specialization

• Occurs when one nation can produce a good or
  service at a lower opportunity cost than another
  nation.

• Encourages trade
• Can be a positive factor in a countrys economy
• Saudi Arabia
• How might too much specialization be a bad thing?
  How might this effect a countrys economy
  negatively?

3
Trade Barriers

• 3 Types

• Tarrifs
• Tax on imports and exports
• Quotas
• Limits the amount of a specific good that can be
  imported into the country
• Embargos
• Limit on trade
• Why might a country impose such trade barriers?

4
OPEC

• Organization of Petroleum Exporting Countries

• Not all oil producing nations are members of OPEC
• Not all OPEC members are ME counties
• OPECs decisions have considerable influence
  internationally since OPEC decides how much oil
  to produce and export
• OPECs influence has decreased in previous years
  as a result of other nations drilling for oil
  such as Canada, Alaska, and Gulf of Mexico

5
Currency EXCHANGE

• Provide a way for determining the value of one
  countrys currency in terms of another countrys
  currency

6
Candy question

• What is the highest valued currency in the world
  currently?