Global Trade
Activity 1 Scoring Guide: Formative Assessment

  1. b
  2. a
  3. Correct answers should include the following:

    Since resources are not distributed evenly across Earth, people and nations must trade to meet and satisfy wants and needs.

    Without trade, nations would lack many of the goods and services vital for economic growth and be unable to provide for the economic well-being of their citizens.

    International trade build wealth and creates opportunities for growth and innovation. This wealth can be measured in terms of services, resources, or goods.

  4. Correct answers should include these ideas:

    Success is assured when a sports team that has talented people with a variety of skills and abilities combine these skills effectively and efficiently. Trade works the same way. When each nation that trades produces only those items (goods and services) while that partner can produce most efficiently, it is bringing its strengths, or comparative advantage to the marketplace.

    It is the country with the comparative advantage that should specialize in producing that good.