Why+Nations+Trade

= **__WHY NATIONS TRADE__** =


 * ** Word ** || ** Spanish Equivalent ** || ** English Meaning ** ||
 * **Expertise** || **Pericia/Habilidad** || **To have abilities to do something** ||
 * **Surplus** || **Superávit/Excedente** || **an amount which is more than is needed**  ||
 * **Encourage** || **Fomentar/Estimular** || **to make something more likely to happen**  ||
 * **Raise** || **Alzar** || **to lift something to a higher position**  ||
 * **Labour** || **Trabajo/Mano de obra** || **people who do practical work with their hands**  ||
 * **Benefit** || **Beneficio/Bien** || **a helpful or good effect, or something intended to help**  ||
 * **Decline** || **Declive/Disminución** || **to become less, worse, or lower**  ||
 * **Retaliate** || **Contraatacar/Responder** || **to hurt someone or do something harmful to them because they have done or said something harmful to you**  ||
 * **Prevent** || **Impedir** || **to stop something from happening or someone from doing something**  ||
 * **Restrict** || **Limitar/Restringir** || **to limit something or prevent it from increasing**  ||
 * **Customs** || **Aduana** || **Institution who makes sure people are not taking goods into a country without paying taxes**  ||
 * **Delay** || **Demorar/Retrasar** || **to make something happen at a later time than originally planned or expected**  ||

**1. Find three (3) reasons given in the text for why nations trade.**

 * Becuase it lacks raw materials, capital or technology.
 * Allows a greater variety of goods and services.
 * Makes grow up the economy of the country.

**2. What are some of the advantage and disadvantages of protectionism?**

 * Adventages: Protectionism reduces imports for improve the balance of trade, protects declining industries from creating further structural unemployment, puts tariff and quotas for protect home industries.
 * Disadventages: Invites retaliation from foreign governments, prevents countries enjoying the full benefits of international specialization and trade.

**What are the effects of tariffs and quotas on trade? Give at least two (2) examples of each.**

 * A tariff isa charge or list of charges either for services or on goods entering a country. The tariff raises the price of the imports and the revenue of the goverments, also reduce the demand of the imports.
 * A quota is a fixed, limited amount or number that is officially allowed, in this case a limit in the imports. The quotas encourage the demand of domestically made subtitutes and reduce the volume of imports.

**4. What other protection techniques are mentioned in the text?**
Administrative practices can discriminate against imports through customs delays or setting specifications met by domestic, but not foreign, producers. And currency restrictions prevent domestic residents from acquiring sufficient foreign currency to pay for imports.