Global supply chains and comparing economies

Grade 12 Social Studies Worksheet - Challenge Me

Circle the best answer.

1. Read this first

   Trade as a share of GDP and GDP, seven countries, 2023

   Country	Trade (percent of GDP)	GDP (trillions of U.S. dollars)
   United States	24.9	27.81
   China	36.7	18.27
   Germany	82.0	4.56
   Japan	43.6	4.38
   India	46.3	3.50
   Mexico	73.7	1.79
   Viet Nam	165.0	0.43

   Note: World Bank, World Development Indicators (NE.TRD.GNFS.ZS and NY.GDP.MKTP.CD), 2023, retrieved Nov 14, 2026. Trade is exports plus imports of goods and services, as a percent of GDP. GDP is in current U.S. dollars, in trillions. Card B (in our words): Each export and import is counted at its full value, including the value of imported parts. GDP counts only the value a country adds. Card C: Trade as a share of GDP shows how large trade is next to a country's own output.

2. 1.

   Pia compares Germany and the United States using the chart. Which statement is best supported?

   • The United States trades more than Germany in dollars, so it also has the higher share of GDP
   • Germany's trade share is over three times the U.S. share, but U.S. trade is larger in dollars
   • Germany trades more than the United States, since its share of GDP is over three times larger
   • Germany's economy is more open than the United States', so it gains more from its trade with others
3. 2.

   Bo compares China and the United States. China's trade share is higher. Which statement about dollars is best supported?

   • Close in dollars (about 6.7 and 6.9 trillion): China's share is higher, the U.S. economy larger
   • China is more dependent on trade than the United States, so a trade disruption would hurt China more
   • The United States trades far more, since its GDP is about 1.5 times China's GDP in dollars
   • China trades about 1.5 times as much as the United States, since its share is 1.5 times larger
4. 3.

   Viet Nam's trade is 165.0 percent of GDP. Esme asks how a share can pass 100 percent. Which reason fits card B?

   • Imports exceed exports by 65 percent, which is what the 165 means when read next to 100 percent
   • A share cannot pass 100 percent of GDP, so the figure is a data error in the World Bank table
   • Viet Nam trades more than it produces, so it must be running down its own stocks of goods
   • Exports and imports are counted at full value, imported parts included; GDP counts value added
5. 4.

   A student says the United States is least connected to the world economy because its trade share is lowest. Jun tests it. What is the best reply?

   • Shown in reverse: the United States is the most connected, since it has the largest GDP of the seven
   • Not shown: a low share partly reflects a large home economy, and U.S. trade is the largest in dollars
   • Shown: a low share means the United States buys and sells little abroad compared with the others
   • Not shown: the chart has no data on connections, so no conclusion can be drawn from its numbers
6. 5.

   A student says Viet Nam depends on imports for 165 percent of its GDP. Luz tests it with the note. What is the best reply?

   • Not shown, and the figure is impossible: no country can import more than its whole GDP in a year
   • Shown: imports and exports are equal, so imports are half of 165, or 82.5 percent of GDP
   • Not shown: trade adds exports and imports, so the chart cannot give imports alone
   • Shown: imports are 165 percent of GDP, since trade is a measure of what a country buys from abroad

7. Output per worker-day in three made-up countries

   Good	Alva	Brek	Cune
   Gadgets	8	6	2
   Grain (sacks)	4	6	5

   Note: Alva, Brek and Cune are made up. Card A: Each country has workers who can make either good. The chart shows output per worker-day. Card B: Opportunity cost is what must be given up. A country has a comparative advantage in a good when its opportunity cost of making it is lower than the other countries'. Card C: Alva and Cune trade at 1 gadget for 1 grain. Card D: The chart has no shipping costs, wages or limits on how many workers each country has.

8. 6.

   Brek makes more grain per worker-day than Cune (6 against 5). Milo asks who has the comparative advantage in grain. Which answer fits card B?

   • Alva, because it gives up the most gadgets for each sack of grain it makes, 2 in total
   • Brek, since its cost of 1 gadget per sack sits in the middle of the three countries' costs
   • Cune: a sack costs it 0.4 gadget, against 1 for Brek and 2 for Alva
   • Brek, because it makes more grain per worker-day than Cune does, 6 sacks against Cune's 5
9. 7.

   Card C: Alva and Cune trade at 1 gadget for 1 grain. Noah asks whether both gain. Which statement is best supported?

   • Alva gains but Cune loses, since Alva is better at gadgets and Cune is the worse producer of both
   • Cune gains but Alva loses, since Alva gives up gadgets that it could keep for its own people
   • Neither gains, since each country gives up one good to receive one good of the other kind
   • Both gain: Alva's gadget costs it 0.5 grain but sells for 1; Cune's would cost it 2.5 grain
10. 8.

    Brek makes more of both goods per worker-day than Cune. A writer says Cune has nothing to offer Brek. Ren tests it. What is the best reply?

    • Not supported: Cune's gadgets cost 2.5 grain, so Cune would sell gadgets to Brek instead of grain
    • Supported: Brek has an absolute advantage in both goods, so it needs no trade partner
    • Supported: Cune makes just 2 gadgets, so it has no good that Brek would want to buy from it
    • Not supported: Cune's grain costs 0.4 gadget against Brek's 1, so Brek gains by buying grain
11. 9.

    A student says specialization is risky for Alva. Zee tests it with card C and the chart. Which statement is best supported?

    • Partly: trade saves Alva 1 gadget per sack, but if trade stopped, that saving would be lost
    • Yes: Alva would lose its gadget output if trade stopped, since gadgets are what it sells abroad
    • Yes: trade lowers Alva's income, since it gives up gadgets in return for the grain it buys
    • No: trade has no risks, since both countries gain from the price of 1 gadget for 1 grain
12. 10.

    Ari asks what card D means for using the chart to plan who should make what. Which statement is best supported?

    • The chart is useless for planning, since it ignores shipping and wages and the limits on workers
    • The chart shows the lowest market prices for trade, since it gives output per worker-day for each
    • The chart settles who should make what, since opportunity costs are the whole story for a country
    • The chart shows where costs are lowest in principle, but not shipping, wages or limits on workers