Global trade (international trade) is the exchange of goods, services, and capital across international borders. It allows countries to specialize in producing goods where they have a comparative advantage. Exports are goods sold to other countries; imports are goods bought from other countries. What is a trade deficit?

China is the world's largest exporter of goods (over $3.5 trillion per year). The United States is the largest importer of goods (over $3.2 trillion per year). China is known as the "factory of the world." Which country is the world's largest exporter?

Comparative advantage is the ability of a country to produce a good or service at a lower opportunity cost than another country. It is the basis for international trade. Saudi Arabia has a comparative advantage in oil (abundant reserves). Brazil has a comparative advantage in coffee (climate suitable for growing coffee beans). Which country has a comparative advantage in oil production?

Trade agreements reduce tariffs and other barriers to trade. Major trade organizations include the World Trade Organization (WTO), the European Union (EU), USMCA (United States-Mexico-Canada Agreement), and ASEAN. The European Union is a single market with free movement of goods, services, capital, and people among its 27 member countries. Which organization is a single market with free movement of goods, services, capital, and people?

The World Trade Organization (WTO) is an international organization that regulates trade between nations. It was established in 1995, succeeding the General Agreement on Tariffs and Trade (GATT). The WTO has 164 member countries (as of 2024). It helps resolve trade disputes and negotiates trade agreements. Where is the WTO headquartered?

Tariffs are taxes on imported goods. They raise the price of imports, protecting domestic industries. Other trade barriers include quotas (limits on quantity), subsidies (government payments to domestic producers), and regulations. Which of these is a tax on imported goods?

Major global trade routes include the Suez Canal (Egypt, connects Mediterranean to Red Sea), the Panama Canal (connects Atlantic to Pacific), the Strait of Malacca (between Malaysia and Indonesia), and the Strait of Hormuz (between Persian Gulf and Arabian Sea). Which canal connects the Mediterranean Sea to the Red Sea?

Globalization is the process of increasing economic, cultural, and political integration among countries. It has been driven by trade liberalization, technology (internet, shipping), and investment flows. Which of these is an effect of globalization?

A supply chain is the network of people, companies, and activities involved in producing and delivering a product. It includes raw materials, manufacturing, transportation, warehousing, and retail. The COVID-19 pandemic disrupted global supply chains (factory shutdowns, shipping delays, container shortages). What caused major supply chain disruptions in 2020-2022?

The largest trading partners of the United States are: Canada, Mexico, China, Japan, Germany, and the United Kingdom. Canada and Mexico are the top two due to USMCA. Which country is the largest trading partner of the United States?