Task 1

1A-Read the below definitions and match them with the following terms:

Exports-Imports-Balance of Trade- Trade Deficit-Trade surplus- Appreciation- Devaluation.

Exports refer to goods or services produced within a country and sold to foreign markets.

 Balance of trade is the difference between a country's exports and imports of goods and
services over a specified period.

 When the value of a country’s currency goes down, it is in state of currency Devaluation

 Trade deficit occurs when a country imports more goods and services than it exports, leading to
a negative balance of trade.

 Imports are goods or services purchased from foreign countries and brought into a domestic
market.

 Trade surplus occurs when a country exports more goods and services than it imports, resulting
in a positive balance of trade.

 When the value of a country’s currency goes up, it is in state of currency Appreciation

1B- Use the same terms to apply on the below scenarios:

  A car manufacturer in the United States produces cars and sells them to customers in Europe.

Export

 Country X imports $1.5 billion worth of goods and services but only exports $1 billion worth of
goods and services to Country Y. Trade deficit

 A clothing store in Canada buys clothing items from manufacturers in Asia to sell in its stores.
Imports

 In a given year, Country C exported $2.5 billion in goods and services and imported $2.2 billion in
goods and services, resulting in a positive balance of trade of $300 million. Balance of trade

 Country A exports $1 billion worth of goods and services to Country B but only imports $800
million worth of goods and services from Country B. Trade Surplus

1C- Choose to discuss one of the below:

- Suggest solutions for trade deficit.

- We can reduce budget deficit Balancing the budget is better
- Suggest solutions governments can employ in the state of currency devaluation.

Manufacturing

Task 2

Scenario 1: The Impact of International Trade on a Local Industry

 Background: A small, traditional family-owned textile business in a rural town has been
producing high-quality clothing for generations. Due to the opening of international markets and
trade liberalization, the company faces increasing competition from low-cost, mass-produced
clothing from overseas manufacturers.

 Task: Analyze the situation of the local textile business. Discuss the advantages and
disadvantages of international trade in this context. Consider the impact on the local economy,
employment, and the quality of products. How does international trade affect this small
business, its workers, and the town as a whole?

Scenario 2: Economic Growth and Environmental Concerns

 Background: A developing country, Country X, is experiencing rapid economic growth due to

increased exports of natural resources. However, this growth has raised environmental concerns,
as it involves significant deforestation and resource depletion.

 Task: Analyze the situation in Country X. Discuss the advantages and disadvantages of
international trade in this context. Consider how the economic growth driven by international
trade affects the environment, the well-being of the population, and the long-term sustainability
of the country. How can trade be leveraged to balance economic development and
environmental conservation?

Task 3
 How does international trade influence the concept of comparative advantage and specialization
to benefit specific industries or regions? Provide a real-life example of an industry or region that
has experienced growth and prosperity due to its engagement in international trade.
Additionally, evaluate any potential challenges or drawbacks associated with this specialization
and trade.