1. The Global Economy STANDARD CE 12d

2. IMPORTS Goods bought from other countries EXPORTS Goods sold to other countries

3. Trade Imbalance Balance of trade

4. Reasons that states and nations trade To obtain goods and services they cannot produce efficiently themselves To obtain goods and services they cannot produce efficiently themselves To buy goods and services at a lower cost or lower opportunity cost To buy goods and services at a lower cost or lower opportunity cost To sell goods and services to other countries To sell goods and services to other countries To create jobs To create jobs

5. Virginia and the United States pursue international trade in order to increase wealth.

6. Global Economy Worldwide markets in which the buying and selling of goods and services by all nations takes place Worldwide markets in which the buying and selling of goods and services by all nations takes place

7. Global Economy

8. Virginia and the U.S. specialize in the production of certain goods and services which promotes efficiency and growth.

9. Impact of technological innovations Contribute to the global flow of information, capital, goods, and services. Contribute to the global flow of information, capital, goods, and services. Lowers the cost of production. Lowers the cost of production. INVENTIONS

10. QUIZ

11. Why do Virginia and the United States trade with other nations? in order to increase wealth in order to increase wealth

12. What is the impact of technological innovation on world trade? Contribute to the global flow of information, capital, goods, and services. Contribute to the global flow of information, capital, goods, and services. Lowers the cost of production. Lowers the cost of production.

13. Virginia and the United States pursue international trade in order to — a. decrease wealth b. deceive wealth c. increase wealth d. increase taxes

14. Worldwide markets in which the buying and selling of goods and services by all nations takes place is called a — a. global economy b. free market c. opportunity cost d. business relationship

15. Which of the following is not a reason that states and nations trade? a. To create jobs b. To sell goods and services to other countries c. To buy goods and services at a lower cost or a lower opportunity cost d. To buy goods at a high price and sell them at a low price

16. One reason that states and nations trade is to obtain goods and services they cannot — a. produce or produce efficiently themselves b. sell to anyone else c. make like the kind at the store d. legally purchase

17. Virginia and the United States specialize in the production of certain goods and services which promotes — a. good hygiene b. efficiency and growth c. literacy d. voter awareness

18. Innovations in technology (e.g. the Internet) contribute to the global flow of — a. disease, famine, and death b. population c. information, capital, goods, and services d. highways

19. How does the use of technology affect the cost of production? a. It increases it. b. It lowers it. c. It eliminates it. d. It has not affect.

20. Innovations of the future