Comparing the Economies of the United Kingdom, Germany and Russia

Instructions: Read pages 150-151 in the CRCT Test Prep book, then use the words in the word banks to fill-in the blanks in the notes below.

Trade Barriers: Tariffs, Quotas, and Embargos (pg. 150)

You need to know the meanings of the following terms: trade barriers, tariffs, quotas, embargo, and free-trade zone.

1. The United Kingdom and Germany are part of the European Union (EU), so they, as well as all other EU member countries, pay lower prices for goods and services as no ______are charged on goods between these countries.

2. Russia does charge tariffs on many imported goods in the hopes that locally grown and produced products will then be purchased due to having a lower ______.

3. EU countries may place a ______on steel imported from Russia in order to limit the flow of Russian steel into EU countries which would keep prices stable.

price quota tariffs

International Trade and the Exchanging of Currencies (pg. 151)

You need to know the meanings of the following terms: currency, ruble, and euro.

4. Countries that use different currencies must ______it to do business with each other.

5. This adds cost to the price of doing business, as banks charge ______every time they process an exchange.

6. If a Russian farmer wants to purchase olives from an Italian farmer, they must exchange their currency,

______, to euros in order to complete the business deal.

7. The end result of this exchange would be for the olives to be more ______than they would be if the currency exchange did not have to be made.

8. EU countries that use the euro can trade more easily and ______with each other because they do not have to be concerned with exchanging currencies or paying the accompanying fees to banks.

cheaply exchange expensive fees rubles