TAKE SEAT WITH PARTNER.  EXAM REVIEW: USE PACKETS: Units 1 & 6 Take all of your review packets out: Either hard copies from your folder; or Open them on classroom; I’ve moved each units RP to the top of classroom so you can find it easily Working with your partner(s): Use your Unit 1 or Unit 6 notes (these are also now at top of classroom) to EITHER revise OR complete your Unit 1 packet. If your notes aren’t complete, use mine from our class website: www.mrggcivics.weebly.com Show me your completed RP so I can check it off SHOWING ME EACH COMPLETED PACKET IS WORTH 1/5 of a test grade. If you and your partner are done with Units 1 & 6, move on to the next unit.

WARM UP Lesson Vocabulary: Unit 7: Trade & Economic Interdependence: A Global Economy Lesson 1: Rich & Poor: Developed & Developing Nations WARM UP What other nations in the world would you consider living in? Why? What do you know about nations & the economies in Europe? Africa? Asia? Central & South America? ESSENTIAL QUESTIONS (WRITE DOWN!): Why are some nations economically strong while others are more weak? Lesson Vocabulary: developed nations layoffs developing nations worker rights export economy human rights service economy trade policy manufacturing economy sanctions/embargos Unions currency exchange rates Right to work laws Group of Eight (G8) Closed shop outsourcing/offshoring Open shop Lesson Skills: I can describe the basic differences between developed and developing nations

Class Website: DEADLINES & HOMEWORK: Unit 7: Trade & Economic Interdependence: A Global Economy Lesson 1: Rich & Poor: Developed & Developing Nations Class Website: www.mrggcivivcs.weebly.com DEADLINES & HOMEWORK: Lesson One: PT 7.1 – Due 12/14 Lesson Two: PT 7.2 Due 12/15 Lesson Three: PT 7.3 Due 12/16 ALL Review Packets DUE: 12/17 UNIT 6 & 7 TEST: THURSDAY 12/17 ECONOMIC SYSTEMS ESSAYS: Draft was due 12/10 FINAL COPY DUE 12/18 NO LATE SUBMISSIONS WILL BE ACCEPTE DEADLINE FOR OTHER MISSING WORK: MONDAY, JANUARY 4th Lesson 7.1 Performance Task Create cartoon / concept map showing 3 key differences between developed and developing nations.

Quiz 6.9 1. What is the main job of the Federal Reserve Bank?

Quiz 6.9 2. What does the Consumer Price Index measure?

Quiz 6.9 3. What are two main tools the Federal Reserve uses to regulate monetary policy?

Quiz 6.9 4. What should the Federal Reserve do to stimulate economic growth during a recession?

Quiz 6.9 What should the Federal Reserve do to control inflation during periods of economic growth?

Quiz 6.9 – Match the definitions on the left to the terms on the right. Total value of all things produced and sold in an economy When the economy contracts 6 months in a row Interest rate that the Federal Reserve charges banks % of money banks must keep in cash The reason the government can’t just print unlimited amounts of money Discount Rate Inflation Gross Domestic Product Reserve Requirement Recession

Global Economic Inequality As you watch, pay attention to: Differences between “developed” & “Developing nations” Differences in global wealth and poverty http://study.com/academy/lesson/economic-inequality-differences-in-developed-and-developing-nations.html

The World Economy Nations around the world are connected through economics Nations specialize in certain products and trade with each other Some nations have bigger economies than others

Per Capita Income Total Gross Domestic Product of a nation divided by its total population Average income for each person in that economy Country Per Capita Income Qatar (first) $143,437 United States (10th) $53,042 China $9,800 Poland $21,100 France $40,375 Mexico $16,370 Democratic Republic of Congo (last) $400

Global Wealth & Poverty Developed nations – countries that are fairly well off economically, with strong economic growth and relatively high per-capita income Developing nations – countries that have little power in the world economy, with low per-capita income and low standards of living

Differences in Wealth & Power Developed Nations Developing nations Combined population around 1 billion people Wealthier Large GDP Higher per-capita income Consume 88% of worlds resources Manufacturing, information, & service based economies Combined population around 5 billion people Poorer Small GDP Consume 12% of world resources Export economies Natural resources are mined and sold to global companies Wealth does not stay in the country

The World Economy Nations around the world are connected through economics;

Currency Exchange Rates Each nation has its own currency (its own money) Depending on the strength of each nations’ economy, its currency gains or looses value relative to the currency of other nations. Exchange rate – compares the values of one nations currency to the currency in other nations Examples: how many pesos (Mexican currency) is each dollar worth? How many Yen (Japanese currency) is each dollar worth? How many dollars (American currency) is the Euro worth? Exchange rates are constantly changing based: Assessments of each nation’s economy supply and demand

Group of Eight (G8) Powerful group of 8 developed nations (created in 1975) that work to control the global financial system: United States France Germany Italy Japan United Kingdom (Britain) Canada Russia

In Industrial Economies Division of Labor Every worker does one small part of the big job

What are the advantages of this for a company?

Advantages More efficient Pace of work can increase

Automation Replacing human beings with machines Fewer jobs Lower production costs

Workers get downsized/laid off

Outsourcing / offshoring American factories shut down & jobs go overseas Other countries have cheaper labor and fewer regulations

How does this create a problem for developed economies? Job loss – factories shut down as companies move production to cheaper labor markets overseas Reduced purchasing power – workers have less money to spend, which can trigger reduced consumer spending

Worker Rights Unions – organizations of workers focused on improving wages and working conditions Companies sometimes try to shut unions down by moving production to other countries In the U.S., union membership peaked in the 1970s; average income & purchasing power did as well As union membership has declined, so have American incomes

Performance Task Activity Go online and research the difference between developed nations and developing nations. Use graphic organizer to help organize information. Create (on back of graphic organizer) a concept map / cartoon that uses images and text to show 2-3 key differences between developed and developing nations WHEN DONE: HAVE YOU COMPLETED ALL YOUR REVIEW PACKETS? Economics Going back to Civics & Economics