Question 1

What is global trade?

Accepted Answer

Global trade is when countries buy and sell things from each other. It's like when you trade toys with your friends, but on a much bigger scale.

Question 2

Why do countries trade with each other?

Accepted Answer

Countries trade because they don't have everything they need. For example, one country might have lots of bananas, but not cars, so they trade bananas for cars.

Question 3

What kinds of things are traded between countries?

Accepted Answer

Countries trade all sorts of things, like food, toys, clothes, and even big things like airplanes and ships.

Question 4

How do countries pay for things in trade?

Accepted Answer

Countries use money to buy things from each other. Sometimes they use their own money, or they agree to use another type, like U.S. dollars.

Question 5

What is an import?

Accepted Answer

An import is something a country buys and brings in from another country. It's like when you get a new toy from a store that was made somewhere else.

Question 6

What is an export?

Accepted Answer

An export is something a country sells to another country. It's like if you made lemonade and sold it to your neighbor.

Question 7

Why are some things cheaper in other countries?

Accepted Answer

Sometimes things are cheaper because it costs less to make them there or because the materials cost less. It's like when you find a toy on sale for a lower price than usual.

Question 8

What is a trade agreement?

Accepted Answer

A trade agreement is a deal between countries to make buying and selling things easier. It’s like agreeing with your friend to swap toys whenever you both want.

Question 9

How do people send goods from one country to another?

Accepted Answer

People use ships, planes, trains, and trucks to send goods. It's like when the mailman brings packages to your house, but for countries.

Question 10

Why do countries sometimes stop trading with each other?

Accepted Answer

Sometimes countries have disagreements or they need to protect their local businesses. It's like when you might stop playing with a friend if you have a fight.

Question 11

What is a tariff?

Accepted Answer

A tariff is like a tax that a country adds to things they buy from other countries. It's like having to pay extra candy for a toy you want to trade.

Question 12

How does global trade affect us in everyday life?

Accepted Answer

Global trade brings us a lot of the things we use every day, like clothes, gadgets, and food. It's like having access to lots of new and different toys.

Question 13

What are some challenges of global trade?

Accepted Answer

Challenges include disagreements between countries or when something happens that makes it hard to send goods, like bad weather. It's like when rain ruins your outdoor play date.

Question 14

How do countries decide what to trade?

Accepted Answer

Countries trade things they are good at making and that other countries want. It's like trading your best action figure for your friend's coolest car toy.

Question 15

What is supply and demand?

Accepted Answer

Supply is how much of something there is, and demand is how much people want it. When a toy is really popular (high demand) and there aren't many (low supply), it might be hard to get.

Question 16

What is a trade surplus?

Accepted Answer

A trade surplus is when a country sells more than it buys from others. It's like ending up with more toys after trading than you started with.

Question 17

What is a trade deficit?

Accepted Answer

A trade deficit is when a country buys more than it sells to others. It's like when you end up with fewer toys after trading.

Question 18

Why is global trade important?

Accepted Answer

Global trade helps countries get things they need and want and allows people to enjoy products from all over the world. It's like having a big, exciting box of toys to choose from every day.

Question 19

How do countries know the value of products from other countries?

Accepted Answer

Countries often compare the value using money or other methods to decide fair prices. It's like making sure when you trade stickers, each one is worth about the same.

Question 20

What happens if a country stops trading completely?

Accepted Answer

If a country stops trading, it might struggle to get everything its people need, like food or electronics. It’s like not being able to get new toys if you stop visiting the toy store.

The Dynamics of Global Trade - 20 FAQs Explained Simply