https://www.youtube.com/watch?v=zcN0d8foBXI

What is Supply and Demand? https://www.youtube.com/watch?v=RP0j3Lnlazs

Voluntary Trade in Latin America, Europe and Australia https://www.youtube.com/watch?v=wHY5cdExNa8

Not Every Country can produce all of the goods and services it needs

Countries Specialize in producing goods and most services they CAN provide efficiently. Then they look to others who may need those goods so that they can sell them.

What Does this mean?? Countries trade with one another to get everything they need for their country. In order to do that each county produces what they can make the best, then the trade with each other.

Trade In international trade NO county can be completely self sufficient. SPECIALIZATION: the products a county makes best and that they are in demand on the world economy. THIS IS A WAY TO BUILD A PROFITABLE ECONOY AND TO EARN MONEY TO BUY ITEMS THAT CANNOT BE MADE LOCALLY

LATIN AMERICA Countries are RICH in oil and Natural Gas They lack farmland and ability to produce enough food Money is earned in the world’s market with oil to purchase food. Brazil has become a leader in agricultural technology even though they have a limited supply of land suitable for farming

Europe Overall, Europe’s gross national product (GNP) or gross national income (GNI) per capita is among the highest in the world. Incomes tend to be much lower in eastern and southeastern Europe than in other regions of the European continent. Income inequality is less of a problem in northern, western, central, and southern Europe than in Russia, Turkey, China, and the United States—and far less of a problem than in Latin America and South Africa

Europe European farmers are great producers of such crops as grains (cereals), sugar beets, olives, oilseeds, and citrus and other fruits. One of the world’s largest energy consumers, the European Union has few of its own energy resources. The EU must import about half its energy. Important supplies of oil also come to the EU via pipelines from Central Asia and via tanker ships Services are a major economic sector in Europe, with banking, tourism, retail trade, health care, education, and government activities included. Tourism alone employs about five percent of the EU labor force. European countries are largely democracies with parliamentary forms of government.

Australia Australia has a mixed, free-market economy based on services, manufacturing, mining, and agriculture. It is widely classified as one of the world’s most developed countries. 

Australia - parliamentary democracy. Australia’s farm products are often in demand in North America, Asia, and Europe because they are harvested during the Northern Hemisphere’s “off season” of winter and spring—that is, during Australia’s summer and fall. Agriculture, fishing, and forestry account for less than 5 percent of the Australian labor force and only about 3 percent of the gross domestic product.  Manufacturing accounts for a major portion of Australian jobs and household income. Although only a small percentage of workers are actually employed by mining companies, the mining industry is also important to the economy.  The largest component of the Australian economy is the service sector. It employs more than 7 million people within a wide range of activities, including banking and finance, education, health care, publishing, radio and television, tourism, restaurants, trade, and entertainment.

TRADE BARRIERS Tariff – A tax placed on goods when they are brought (IMPORTED) into one country from another. Why? Make the imported goods more expensive than a similar item made locally. PROTECTS LOCAL COMPANIES

TRADE BARRIERS Quota – Sets a specific amount or number of a particular product that can be imported. Why? A different way of limiting the amount of foreign goods that can come into a country Ex: Israel could decide that only 1500 cars could be brought into the country from Japan in a given year. That would mean it is more likely that people by Isreali made cars because Japanese's cars would not be available.

TRADE BARRIERS Embargo - When a country announces that it will no longer trade with another country in order to isolate a country and cause problems with that country’s economy

How does Voluntary Trade Benefit Buyers and Sellers in Latin America, The Caribbean and Canada? Most countries have their own currency. In order to pay for goods they trade with each other they had to establish a system of changing one type of currency to another. EXCHANGE RATE: In order to trade with each other they have to figure out what goods cost in each currency. THIS MAKES IT POSSIBLE TO SELL GOODS BETWEEN NATIONS WITH DIFFERENT TYPES OF MONEY

NAFTA? NAFTA is the North American Free Trade Agreement, a treaty between Canada, Mexico, and the United States that has been in effect since 1 January 1994. The agreement was designed to increase trade among the three nations by reducing or eliminating restrictions on commerce, such as tariffs and import quotas. It is one of the most powerful and wide-reaching treaties in the world, governing the entire spectrum of trade and commerce on the North American continent.