Title: (Optional) Describe possible outcomes and other important aspects of world trade.
Course: Principles of Business and Marketing (12051-18) > Section: Understanding the Role of Economics in a Global Economy

Description should focus on the balance of trade (to avoid surplus and deficit) and include the influence of

- increased competition, which regulates the cost of goods and services
- greater variety of goods and services
- increased tax revenues, especially from imports and exports
- political alliances with other countries
- increased number of jobs in some countries and increased unemployment in others
- improvement in product quality
- increased competition affecting costs of goods and services
- decreased tax revenue due to loss of domestic manufacturing
- increased economic interdependence among countries
- exchange rates
- trade barriers
- trade agreements
- world events.

Process/Skill Questions:

- What is meant by balance of trade?
- What is the role of imports and exports in world trade?
- How can trade barriers affect world trade?
- What is economic interdependence? Why is it important in today’s world?
- How does a country’s exchange rate affect trade?
- What are the advantages and disadvantages of trade agreements?
- What is the World Trade Organization (WTO)? What is its primary goal?
- What is a common market?
- How do common markets differ from trade agreements?