NAFTA, Trade, and the Panama Canal Click through slides, they animate as you go. Note about presentation are here. Ask question, watch video, call on a few students to reflect.

Trade and Markets Trade: the transfer of the ownership of goods or services from one person/ entity to another in exchange for money, goods or services. Market: A network that allows trade. Trade: you might be familiar with trading pokemon cards, lunch, or maybe even chores with a subling but we are talking about large scale nation to nation multi giant ship trading of goods or services. Market: You might be familar with a farmers market, which is very similar to a kind of “flee” market in the middle east called a bazzar. Companies and comodities like gold or pork bellies can be traded on the stock market. We live in a global world where goods are traded on a world market and shipped on big ships.

Tariffs, Imports, and Exports Import: to bring in goods or services into a country from abroad Export: to send goods or services to another country for sale Tariff: A tax or duty to be paid on imports or exports. Tariff: Can protect your economy and jobs from cheaper/ better quality goods aboard. But sometimes people want goods and don’t have a domestic replacement. You might remember a tax on tea from history, people don’t like to pay taxes, it makes the goods more expensive from aboard. Anyone name this event? Basically one of those really drunk ideas that made history….America!!! Import/ Export: In the USA we import many things from China (including some US flags :(....) Many companies here import or outsource labor for tech support centers like this one in India. (story about being on the phone with Abraham Lincoln). BUT (change slide) we also produce goods for export here is a list, and for those keeping score Texas is number 1

Our 15 Largest Trading Partners Red: US Imports Green: US Exports Which countries do we import the most from? Which countries do we export the most to?

Top 10 US Imports Top 10 US Exports Electronic equipment: US$332.9 billion (14.4% of total US imports) Machines, engines, pumps: $329.3 billion (14.3%) Vehicles: $283.8 billion (12.3%) Oil: $201.2 billion (8.7%) Pharmaceuticals: $86.1 billion (3.7%) Medical, technical equipment: $78.3 billion (3.4%) Furniture, lighting, signs: $61.2 billion (2.6%) Gems, precious metals: $60.2 billion (2.6%) Organic chemicals: $52.1 billion (2.3%) Plastics: $50.2 billion (2.2%) Top 10 US Exports Machines, engines, pumps: US$205.8 billion (13.7% of total exports) Electronic equipment: $169.8 billion (11.3%) Aircraft, spacecraft: $131.1 billion (8.7%) Vehicles: $127.1 billion (8.4%) Oil: $106.1 billion (7.1%) Medical, technical equipment: $83.4 billion (5.5%) Plastics: $60.3 billion (4%) Gems, precious metals, coins: $58.7 billion (3.9%) Pharmaceuticals: $47.3 billion (3.1%) Organic chemicals: $38.8 billion (2.6%)

What exactly is NAFTA? Quick review!!! What is a tariff? Trade Deficit: When imports exceed the value of exports. Trade Surplus: When exports exceed the value of imports. Domestic Manufacturing/Industry: Goods produced in the country of residence. (The US) Foreign Manufacturing/Industry: Goods produced abroad. http://money.cnn.com/video/news/2016/08/02/nafta-explained.cnnmoney/

A Few Pros Easier and cheaper to buy Canadian and Mexican Goods All 3 countries experienced a wage increase. Trade of goods and services between the U.S., Canada and Mexico has increased from $337 billion in 1993, before NAFTA went into effect, to $1.182 trillion. NAFTA Increased Industrial Integration Between the U.S. and Mexico. The U.S. saw 800,000 new manufacturing jobs from 1994 through 1998, reversing a 13-year trend. (But also lost manufacturing jobs in other industries.)  Increased trade from NAFTA supports about 5 million U.S. jobs. 

Cons Factories near the border, called maquiladoras, sprung up. Mexican workers provide cheap labor to produce U.S. goods. These towns have a poor quality of life for workers, and the development of a middle class in Mexico did not occur as expected. American wages have been suppressed (held back). American Industries threaten to move all labor to Mexico, or Asia, until workers agree to lower wages/smaller raises. NAFTA may have eliminated tariffs between the U.S., Canada and Mexico, but it didn't do away with the numerous customs regulation that can stifle trade.

Panama Canal https://www.youtube.com/watch?v=q2T7CL9wqyM 1. Why is ownership of the canal so important? 2. What are other MAJOR examples of humans changing Geography to suit their needs? 3. The Panama canal is an example of a ________________. Or a strategic narrow route providing passage through or to another region.

Political Cartoons!!! We’ll do the first one together. Remember to look for bias. Often, if the cartoon is way over the top, the artist may be expressing the opposite opinion. For example, from last time, is this cartoon for or against immigration? How do you know?

Cartoon 1