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Why Countries Trade

Life Skills · Money & Finance · ages 9-11

Name ______________________ Date ____________

Which of these is an example of an export?
- A country buys coffee from another country
- A country sells its coffee to other countries
- A country drinks all its own coffee
Why does a country buy things from other countries?
- Because it can't make everything it needs
- Because its own products are bad
- Because other countries pay it to buy things
Every country in the world uses the same money.
Circle one: True False
A country builds cars and ships them to be sold in other countries. Is that an import or export for that country?
- Export
- Import
- Neither, it's a gift
Canada is too cold to grow bananas well. What does Canada do to get bananas?
- Stop eating bananas
- Grow bananas indoors in the snow
- Import bananas from a warmer country
You are traveling from the United States to Mexico. What should you do with your money?
- Use dollars everywhere in Mexico
- Exchange dollars for pesos before spending
- Leave all your money at home
A shop in your country sells oranges labeled 'Grown in Spain.' What is this an example of?
- An import your country brought in
- A product with no connection to trade
- An export your country sent out
Jay says his country makes everything itself, so it never needs to trade. What's the mistake in Jay's thinking?
- His country is the only one that trades
- Trade only happens between neighboring countries
- No country can produce every single thing it needs

Answer key

For grown-ups. Fold this page away before handing over the rest.

A country sells its coffee to other countries · An export is a good that leaves the country to be sold somewhere else.
Because it can't make everything it needs · Every country is missing something, whether that's certain crops, materials, or factories, so it trades to get it.
False · Each country has its own currency, like dollars, yen, or euros.
Export · Goods leaving the country to be sold elsewhere are exports.
Import bananas from a warmer country · When a country can't grow or make something, it imports it from a country that can.
Exchange dollars for pesos before spending · Mexico uses pesos, not dollars, so travelers exchange their money first.
An import your country brought in · Goods coming from another country into yours are imports, even something as small as fruit at a shop.
No country can produce every single thing it needs · Even large, resource-rich countries still import things they can't grow or make themselves.