I CAN… Essential Question: What is economics? Define the economic vocabulary words Use my economic terms correctly in a sentence Demonstrate understanding of my economic terms with their meaning in the text Essential Question: What is economics?

International Trade This involves the exchange of goods or services between countries. International trade is described in terms of: Exports: the goods and services sold to other countries Imports: the goods or services bought from other countries Countries trade goods because no country has all the resources necessary to efficiently produce everything its people need.

What’s an Embargo? Trade embargoes forbid trade with another country. The government orders a complete ban on trade with another country. The embargo is the harshest type of trade barrier and is usually enacted for political purposes to hurt a country economically.

Exports v. Imports Exports Imports The goods and services that a nation produces Goods are sold to other nations EXport = EXiting (leaving the country) The goods and services that a nation buys from other nations Import = Coming IN to a country

Most countries want to export goods to other countries. Trade Barriers Most countries want to export goods to other countries. Why? When a country sends (exports) a good to another country they get money for sending that good. Countries want a trade surplus, which is when a country exports more than it imports

What is a Tariff? A tariff is a tax put on goods imported from other countries. The effect of a tariff is to raise the price of the imported product. It makes imported goods more expensive so that people are more likely to purchase lower-priced items produced domestically.