Why Do People Trade Flashcards
(19 cards)
Who would use the barter system
Explorers and pilgrims would barter to get things needed for their journey.
What are 5 key elements of bartering?
- Getting goods and services in exchange for your own goods
- Barter system can be done globally
- Don’t have to use money
- Barter system nowadays is easy to exchange
- You can trade 1 of your things for 10 of their things.
What are 2 advantages of factories that make processed goods
Can sell their products for more money than just the raw material.
Supplying jobs to people.
What does trading mean?
Buying and selling of gods
What are products?
Things that a country has. Things you can buy at a shop.
What are services?
Something that someone does for others for money Eg: hairdresser
What is importing?
A country buys products from another country
What is exporting?
When a country sells products to another country
What is global trade?
Is buying and selling between countries.
What are natural resources?
Materials made by the earth that humans can make into more complex products.
Why do people trade?
Because they need or want goods and services that they don’t have.
What does a country sell to another country and why?
Natural resource, like rice, as other countries do not produce rice. Services as well.
How does a country that exports goods use the money it makes from these exports?
By making their country better like fixing the roads.
What does South Africa have a lot of, to produce steel?
Coal , iron ore and factories to make it.
What is a trading bloc?
A group of countries that agree to have free trade with no taxes
Why does a country sometimes choose not to produce everything in its own country?
These goods can be produced in another country at a lower cost and will be cheaper for the country to import.
Name 3 products that South Africa imports?
Inedible raw materials
Chemicals
Machinery
Name 3 examples of what South Africa exports?
Metal ores
Gold
Maize
Define the barter system.
It was used before money was created. People required certain goods would exchange them for other goods that person required.
