EPF 9 – The student will demonstrate knowledge of the global economy

EPF 9 – The student will demonstrate knowledge of the global economy EXERCISE Pick a partner and a foreign-owned company. Identify the products they sell that we buy. Identify its stock price in US dollars. Recommend whether we should buy or sell. Explain . . . . . . why the stock price will go up or down? (Use the concepts of S & D) . . . what economic decisions the country & company were making to increase their incomes).

EPF 9 – The student will demonstrate knowledge of the global economy EXERCISE INDEX CARD REPORT Name the foreign-owned company (and partners). Name of the product(s) they sell. Identify the company’s stock price in US dollars. Should we buy or sell the stock? Explain . . . - Why the stock price will go up or down? (Discuss how Supply & Demand both apply) - What economic decisions did the company and the country make to increase their incomes?

EPF 9 – The student will demonstrate knowledge of the global economy COMPLETE THE EPF 9 PRETEST

EPF 9 – The student will demonstrate knowledge of the global economy Crash Course Economics International Trade https://www.youtube.com/watch?v=geoe-6NBy10

Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Exports Specialization Trade Deficit Production Trade Surplus Consumption Exchange rate Trading Partners Strong Dollar Imports Weak Dollar

Occurs when countries exchange goods and services between one another Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar Occurs when countries exchange goods and services between one another

Occurs when countries exchange goods and services between one another Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar Occurs when countries exchange goods and services between one another

Goods that are brought into a country Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar Goods that are brought into a country

Goods that are brought into a country Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar Goods that are brought into a country

Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar When the value of goods a country exports exceeds the value of the goods it imports

Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar When the value of goods a country exports exceeds the value of the goods it imports

Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar When the value of goods a country exports is less than the value of the goods it imports

Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar When the value of goods a country exports is less than the value of the goods it imports

Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar The using up of goods and services (including but not limited to imports)

Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar The using up of goods and services (including but not limited to imports)

The countries another country imports goods from or exports good to Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar The countries another country imports goods from or exports good to

The countries another country imports goods from or exports good to Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar The countries another country imports goods from or exports good to

Objective – The student will be able to match the terms associated with foreign trade with their definitions By trading with country “A,” country “B” does not have to produce that good. Country “B” may not be especially skilled in that production process or may lack the resources needed to produce that good. This allows countries to focus on what they do best allowing for more efficient use of economic resources International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar

Objective – The student will be able to match the terms associated with foreign trade with their definitions By trading with country “A,” country “B” does not have to produce that good. Country “B” may not be especially skilled in that production process or may lack the resources needed to produce that good. This allows countries to focus on what they do best allowing for more efficient use of economic resources International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar

The making of or construction of goods Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar The making of or construction of goods

The making of or construction of goods Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar The making of or construction of goods

The sending of goods and services to another country Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar The sending of goods and services to another country

The sending of goods and services to another country Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar The sending of goods and services to another country

Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar A situation where the U.S. dollar's value is decreasing relative to foreign currencies.

Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar A situation where the U.S. dollar's value is decreasing relative to foreign currencies.

Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar When the U.S. dollar’s value is increasing enabling us to exchange the dollar for more foreign currency or goods

Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar When the U.S. dollar’s value is increasing enabling us to exchange the dollar for more foreign currency or goods

Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar It is regarded as the value of one country’s currency in terms of another currency, two for one for example

Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar It is regarded as the value of one country’s currency in terms of another currency, two for one for example

The dollar difference between a country’s imports and exports Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar Balance of Trade The dollar difference between a country’s imports and exports

The dollar difference between a country’s imports and exports Objective – The student will be able to match the terms associated with foreign trade with their definitions International Trade Specialization Production Consumption Trading Partners Imports Exports Trade Deficit Trade Surplus Exchange rate Strong Dollar Weak Dollar Balance of Trade The dollar difference between a country’s imports and exports (BONUS WORD)

Objective – The student will be able to describe the difference between “Absolute” & “Comparative” advantage ABSOLUTE ADVANTAGE: The ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity COMPARATIVE ADVANTAGE: The ability of a party to produce a particular good or service at a lower opportunity cost than another.

Objective – The student will be able to describe the difference between “Absolute” & “Comparative” advantage ABSOLUTE ADVANTAGE: The ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity COMPARATIVE ADVANTAGE: The ability of a party to produce a particular good or service at a lower opportunity cost than another. TOUGH TOPIC

Objective – The student will be able to describe the difference between “Absolute” & “Comparative” advantage ABSOLUTE ADVANTAGE: The ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity For example, the producer that requires a smaller quantity inputs to produce a good is said to have an absolute advantage in producing that good.

Objective – The student will be able to describe the difference between “Absolute” & “Comparative” advantage ABSOLUTE ADVANTAGE: The ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity For example, Country A uses less time than B to make both food and clothing. Country A makes 6 units of food & 3 units of clothing while Country B makes 1 unit of food and 2 of clothing. Country A therefore has an absolute advantage in making both food and clothes.

Objective – The student will be able to describe the difference between “Absolute” & “Comparative” advantage COMPARATIVE ADVANTAGE: The ability of a party to produce a particular good or service at a lower opportunity cost than another. For England to produce Swiss watches, they would have to invest many more resources than the Swiss who have it down to a science, but the Swiss, who can do anything better than anyone else, can’t make English scones without giving up even more resources because they lack experience with scones. Therefore, the English have a comparative advantage over the Swiss in the scone industry.

Objective – The student will be able to describe the difference between “Absolute” & “Comparative” advantage COMPARATIVE ADVANTAGE: The ability of a party to produce a particular good or service at a lower opportunity cost than another. The bottom line is that comparative advantage drives countries to specialize in the production of the goods for which they have the lowest opportunity cost, which leads to increased productivity.

Objective – The student will be able to describe the difference between “Absolute” & “Comparative” advantage CONSIDER LEBRON JAMES Lebron James has an absolute advantage at basketball. But for all I know, Lebron James may also be the fastest typist in the world giving him an absolute advantage at typing, too. Since he's better at typing than you, can't he type more cheaply than you? That is, if someone has an absolute advantage in something, doesn't he automatically have a comparative advantage in it?

Objective – The student will be able to describe the difference between “Absolute” & “Comparative” advantage CONSIDER LEBRON JAMES The answer is no! If James takes time out from shooting hoops to do all his own typing, he sacrifices the large income he earns from entertaining fans of basketball. If his secretary does the typing, the secretary only gives up an alternative secretarial job. That is, the secretary is the lower-cost typist. The secretary has the comparative advantage at typing, NOT Lebron James!

Objective – The student will be able to describe the difference between “Absolute” & “Comparative” advantage CONSIDER LEBRON JAMES The trick to understanding comparative advantage is in the phrase "lower cost." What it costs someone to produce is the opportunity cost - the value of what is given up. In other words, it would be silly for Lebron to give up basketball for typing

Objective – The student will be able to describe the difference between “Absolute” & “Comparative” advantage CONSIDER LEBRON JAMES But, the existence of a comparative advantage, allows two parties to benefit from trading because each party will receive a good at a price that is lower than its opportunity cost of producing that good. This is why many individuals, firms, and countries specialize in certain goods and services.

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement. The currency used in many European countries

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement. The currency used in many European countries

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement. An agreement signed by Canada, Mexico, and the United States, creating a trilateral trade block in North America.

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement. An agreement signed by Canada, Mexico, and the United States, creating a trilateral trade block in North America.

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement. Anything that motivates a person, business, or country to take a certain action.

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement. Anything that motivates a person, business, or country to take a certain action.

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement. A limit on the amount of goods or services that one country can export to another.

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement. A limit on the amount of goods or services that one country can export to another.

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement. Sending jobs from one country to another to lower the labor cost of producing a good.

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement. Sending jobs from one country to another to lower the labor cost of producing a good.

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement. A region where a group of countries has agreed to reduce or eliminate trade barriers – tariffs, bans, or quotas.

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement. A region where a group of countries has agreed to reduce or eliminate trade barriers – tariffs, bans, or quotas

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement. A tax on imports.

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement. A tax on imports.

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement. Also called a pact, these are made in order to reduce (or eliminate) tariffs, quotas and other trade restrictions on items traded between the trading partners.

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement. Also called a pact, these are made in order to reduce (or eliminate) tariffs, quotas and other trade restrictions on items traded between the trading partners.

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems The process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement.

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems The process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement.

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement. An economic treaty of 28 countries creating a single market through a system of laws that apply to all members. These policies ensure the free movement of people, goods, services, and capital within the internal market and maintain common policies on trade

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems An economic treaty of 28 countries creating a single market through a system of laws that apply to all members. These policies ensure the free movement of people, goods, services, and capital within the internal market and maintain common policies on trade . Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement.

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems An organization which regulates international trade. It deals with regulation of trade between participating countries by providing a framework for negotiating trade agreements and a dispute resolution process aimed at enforcing, participants' adherence to agreements Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement.

Objective – Be able to describe the terms associated Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement. An organization which regulates international trade. It deals with regulation of trade between participating countries by providing a framework for negotiating trade agreements and a dispute resolution process aimed at enforcing, participants' adherence to agreements

A complete shutdown of trade between two countries Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement Embargo A complete shutdown of trade between two countries

A complete shutdown of trade between two countries Objective – Be able to describe the terms associated with trade barriers and problems Euro Tariff Quota Incentives Globalization Free Trade Zone Trade agreements European Union (EU) Outsourcing (Off Shoring) World Trade Organization (WTO) North American Free Trade Agreement Embargo (BONUS WORD) A complete shutdown of trade between two countries

Objective – Be able to describe the consumer benefits Objective – Be able to describe the consumer benefits of international trade There are many benefits to trade between countries. Think about it; how do you as a consumer benefit from the trade between the United States and countries from around the world? DISCUSSION

Objective – Be able to describe the consumer benefits Objective – Be able to describe the consumer benefits of international trade So, when trade barriers are put up by governments, people in both effected countries suffer the consequences. The question is, what are three of those consequences? DISCUSSION

Objective – Be able to describe the consumer benefits Objective – Be able to describe the consumer benefits of international trade So, when trade barriers are put up by governments, people in both effected countries suffer the consequences. The question is, what are at least three of those consequences? - Higher Prices - Limited access to some products - Fewer customers for your business - Loss of specialization

Objective – Be able to describe the consumer benefits Objective – Be able to describe the consumer benefits of international trade Likewise, however, when trade barriers are put up by governments, people in both effected countries might benefit. What are at least three of those benefits? - Higher prices for USA businesses - Perhaps more jobs in the country - Reduction in trade deficits - Government income

Objective – Be able to describe the consumer benefits Objective – Be able to describe the consumer benefits of international trade ASSIGNMENT Find & watch a Youtube.com video discussing the pros & cons of trade barriers E-mail a copy to my school address stephen.varmecky@lcps.org Indicate if its worth watching in class or not Sample: https://www.youtube.com/watch?v=PtelCyQzbQ0

EPF 9 – The student will demonstrate knowledge of the global economy Crash Course Economics Specialization & Trade https://www.youtube.com/watch?v=NI9TLDIPVcs Globalization https://www.youtube.com/watch?v=9MpVjxxpExM

EPF 9 – The student will demonstrate knowledge of the global economy COMPLETE THE EPF 9 QUIZLET