This worksheet challenges students to define key economic terms related to international trade, deficits, and currency exchange.
Crash Course Economics International Trade worksheet with fill-in-the-blank questions about global commerce.
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Step-by-step solution for: International trade - Business students - ESL worksheet by Rainbolady
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Show Answer Key & Explanations
Step-by-step solution for: International trade - Business students - ESL worksheet by Rainbolady
Here is the completed version of your "Crash Course Economics – International Trade" worksheet with answers and explanations for each section. I'll fill in the blanks and provide clear, concise explanations where needed.
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How do we call what countries sell and buy overseas?
👉 International trade
> *Explanation:* This refers to the exchange of goods and services between countries.
---
What is called the annual difference between a country’s exports and imports?
👉 Trade balance
> *Explanation:* The trade balance measures the difference between a country's total value of exports and imports over a year.
---
If the value of exports exceeds that of the imports, a country will have a ________
👉 Trade surplus
> *Explanation:* A trade surplus occurs when a country sells more goods and services abroad than it buys from other countries.
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And conversely, a country may have ________
👉 Trade deficit
> *Explanation:* A trade deficit happens when a country imports more than it exports.
---
Is a deficit bad for a country? Explain the journalist’s main argument.
👉 Not necessarily. The journalist argues that a trade deficit can be a sign of a strong economy because it means consumers are buying more goods (including imported ones), which reflects confidence and demand. It also allows access to cheaper or better-quality foreign products.
> *Explanation:* While deficits can raise concerns about long-term debt or dependency on foreign goods, they don’t always indicate economic weakness. For example, the U.S. runs large deficits but remains one of the world’s strongest economies due to its financial markets and innovation.
---
What is the value of international trade: ________ to make everything on your own if ________ that have a ________ to make everything on your own.
👉 It is not efficient / you don’t / comparative advantage
> *Explanation:* Countries specialize in producing goods they can make more efficiently (comparative advantage) rather than trying to produce everything themselves, which would be inefficient.
---
Why does importing doesn't necessarily harm jobs in your own country?
👉 Because imports often replace less efficient domestic production, freeing up labor and capital to go into areas where the country has a comparative advantage. And basically, international trade creates new jobs in export industries and related sectors.
> *Explanation:* While some jobs may be lost in import-competing industries, others are created in export-oriented sectors and service industries linked to global trade.
---
But in trade, what is good for the collective is not necessarily good for the individual.
👉 True — while overall national welfare increases, certain groups (like workers in declining industries) may suffer.
---
What trade bloc is mentioned?
👉 NAFTA (North American Free Trade Agreement)
> *Explanation:* NAFTA was a trade agreement between the United States, Canada, and Mexico designed to eliminate tariffs and promote free trade among the three nations.
What’s its purpose?
👉 To reduce trade barriers and increase economic integration among member countries.
---
Some say that the bloc has increased the US’s trade deficit because ________
👉 U.S. companies moved manufacturing to Mexico to take advantage of lower labor costs, leading to more imports from Mexico.
On the other hand, others say that this has allowed the US economy to ________ and has ________ various consumer goods.
👉 Focus on higher-value industries (e.g., tech, finance) and benefited consumers by providing cheaper goods.
> *Explanation:* Critics argue job losses in manufacturing; supporters point to gains in productivity and consumer choice.
---
So, it’s a tricky question!
✔ Correct — trade impacts different people differently.
---
Although the benefits of free trade are still a debate, it is ________, that the world’s biggest economies will return to strict protectionism because tariffs and quotas usually ________.
👉 Unlikely / hurt economic growth and lead to trade wars
> *Explanation:* Protectionist policies like tariffs often trigger retaliatory actions from other countries, reducing global trade and harming all parties involved.
---
What is the WTO and what’s its purpose? (World Trade Organisation, or ________ in French)
👉 Organisation mondiale du commerce
> *Explanation:* The official French name of the WTO.
Purpose:
1. Eradicate trade barriers
2. Getting countries to agree to specific trade rules
3. And helped resolve trade disputes
> *Explanation:* The WTO promotes fair trade by setting rules, monitoring compliance, and resolving conflicts between member nations.
---
But on the flip side, the WTO’s been accused of:
👉 Favoring rich countries, undermining national sovereignty, and being undemocratic or unaccountable
> *Explanation:* Critics argue that powerful nations dominate decision-making, and developing countries may lose out in negotiations.
---
Trade between countries depends on:
👉 Comparative advantage, exchange rates, transportation costs, government policies (tariffs, quotas), and political stability
> *Explanation:* These factors determine whether trade is profitable and sustainable between nations.
---
What is the exchange rate: what your country’s ________ is ________ when you trade it with another country’s ________.
👉 Currency / worth / currency
> *Explanation:* The exchange rate tells you how much one currency is worth in terms of another (e.g., 1 USD = 0.90 EUR).
---
A currency can ________ or ________.
👉 Appreciate / depreciate
> *Explanation:* Appreciation = becomes stronger; Depreciation = becomes weaker.
---
When a currency has appreciated, it is more expensive to buy this currency.
✔ Correct.
---
IMPORTS: So, when the dollar has appreciated, it becomes ________ for US consumers to ________ foreign goods and US exports get more expensive, and therefore the imports ________ and the exports ________.
👉 Cheaper / buy / increase / decrease
> *Explanation:* A stronger dollar makes foreign goods cheaper for Americans → more imports. But U.S. goods become pricier for foreigners → fewer exports.
---
So what happened when the dollar has depreciated?
👉 Imports became more expensive (fewer imports), and exports became cheaper (more exports).
> *Explanation:* A weaker dollar boosts U.S. exports (they’re cheaper abroad) but raises the cost of imported goods for Americans.
---
This worksheet covers key concepts in international trade:
- Trade balance (surplus/deficit)
- Comparative advantage
- Trade blocs (e.g., NAFTA)
- Role of the WTO
- Exchange rates and their impact on trade
Understanding these helps explain why countries trade, how trade affects jobs and prices, and why policy decisions matter.
Let me know if you'd like a printable version or flashcards based on this!
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CRASH COURSE ECONOMICS – INTERNATIONAL TRADE
How do we call what countries sell and buy overseas?
👉 International trade
> *Explanation:* This refers to the exchange of goods and services between countries.
---
What is called the annual difference between a country’s exports and imports?
👉 Trade balance
> *Explanation:* The trade balance measures the difference between a country's total value of exports and imports over a year.
---
If the value of exports exceeds that of the imports, a country will have a ________
👉 Trade surplus
> *Explanation:* A trade surplus occurs when a country sells more goods and services abroad than it buys from other countries.
---
And conversely, a country may have ________
👉 Trade deficit
> *Explanation:* A trade deficit happens when a country imports more than it exports.
---
Is a deficit bad for a country? Explain the journalist’s main argument.
👉 Not necessarily. The journalist argues that a trade deficit can be a sign of a strong economy because it means consumers are buying more goods (including imported ones), which reflects confidence and demand. It also allows access to cheaper or better-quality foreign products.
> *Explanation:* While deficits can raise concerns about long-term debt or dependency on foreign goods, they don’t always indicate economic weakness. For example, the U.S. runs large deficits but remains one of the world’s strongest economies due to its financial markets and innovation.
---
What is the value of international trade: ________ to make everything on your own if ________ that have a ________ to make everything on your own.
👉 It is not efficient / you don’t / comparative advantage
> *Explanation:* Countries specialize in producing goods they can make more efficiently (comparative advantage) rather than trying to produce everything themselves, which would be inefficient.
---
Why does importing doesn't necessarily harm jobs in your own country?
👉 Because imports often replace less efficient domestic production, freeing up labor and capital to go into areas where the country has a comparative advantage. And basically, international trade creates new jobs in export industries and related sectors.
> *Explanation:* While some jobs may be lost in import-competing industries, others are created in export-oriented sectors and service industries linked to global trade.
---
But in trade, what is good for the collective is not necessarily good for the individual.
👉 True — while overall national welfare increases, certain groups (like workers in declining industries) may suffer.
---
What trade bloc is mentioned?
👉 NAFTA (North American Free Trade Agreement)
> *Explanation:* NAFTA was a trade agreement between the United States, Canada, and Mexico designed to eliminate tariffs and promote free trade among the three nations.
What’s its purpose?
👉 To reduce trade barriers and increase economic integration among member countries.
---
Some say that the bloc has increased the US’s trade deficit because ________
👉 U.S. companies moved manufacturing to Mexico to take advantage of lower labor costs, leading to more imports from Mexico.
On the other hand, others say that this has allowed the US economy to ________ and has ________ various consumer goods.
👉 Focus on higher-value industries (e.g., tech, finance) and benefited consumers by providing cheaper goods.
> *Explanation:* Critics argue job losses in manufacturing; supporters point to gains in productivity and consumer choice.
---
So, it’s a tricky question!
✔ Correct — trade impacts different people differently.
---
Although the benefits of free trade are still a debate, it is ________, that the world’s biggest economies will return to strict protectionism because tariffs and quotas usually ________.
👉 Unlikely / hurt economic growth and lead to trade wars
> *Explanation:* Protectionist policies like tariffs often trigger retaliatory actions from other countries, reducing global trade and harming all parties involved.
---
What is the WTO and what’s its purpose? (World Trade Organisation, or ________ in French)
👉 Organisation mondiale du commerce
> *Explanation:* The official French name of the WTO.
Purpose:
1. Eradicate trade barriers
2. Getting countries to agree to specific trade rules
3. And helped resolve trade disputes
> *Explanation:* The WTO promotes fair trade by setting rules, monitoring compliance, and resolving conflicts between member nations.
---
But on the flip side, the WTO’s been accused of:
👉 Favoring rich countries, undermining national sovereignty, and being undemocratic or unaccountable
> *Explanation:* Critics argue that powerful nations dominate decision-making, and developing countries may lose out in negotiations.
---
Trade between countries depends on:
👉 Comparative advantage, exchange rates, transportation costs, government policies (tariffs, quotas), and political stability
> *Explanation:* These factors determine whether trade is profitable and sustainable between nations.
---
What is the exchange rate: what your country’s ________ is ________ when you trade it with another country’s ________.
👉 Currency / worth / currency
> *Explanation:* The exchange rate tells you how much one currency is worth in terms of another (e.g., 1 USD = 0.90 EUR).
---
A currency can ________ or ________.
👉 Appreciate / depreciate
> *Explanation:* Appreciation = becomes stronger; Depreciation = becomes weaker.
---
When a currency has appreciated, it is more expensive to buy this currency.
✔ Correct.
---
IMPORTS: So, when the dollar has appreciated, it becomes ________ for US consumers to ________ foreign goods and US exports get more expensive, and therefore the imports ________ and the exports ________.
👉 Cheaper / buy / increase / decrease
> *Explanation:* A stronger dollar makes foreign goods cheaper for Americans → more imports. But U.S. goods become pricier for foreigners → fewer exports.
---
So what happened when the dollar has depreciated?
👉 Imports became more expensive (fewer imports), and exports became cheaper (more exports).
> *Explanation:* A weaker dollar boosts U.S. exports (they’re cheaper abroad) but raises the cost of imported goods for Americans.
---
✔ Final Summary:
This worksheet covers key concepts in international trade:
- Trade balance (surplus/deficit)
- Comparative advantage
- Trade blocs (e.g., NAFTA)
- Role of the WTO
- Exchange rates and their impact on trade
Understanding these helps explain why countries trade, how trade affects jobs and prices, and why policy decisions matter.
Let me know if you'd like a printable version or flashcards based on this!
Parent Tip: Review the logic above to help your child master the concept of trade worksheet.
