Balance of Trade / Balance of Payment Where is the United States? http://www.census.gov/foreign-trade/statistics/highlights/top/top1412yr.html http://www.worldsrichestcountries.com/top_us_exports.html http://www.worldsrichestcountries.com/top_us_imports.html http://www.tradingeconomics.com/united-states/balance-of-trade

Motivation Have the students do “Handout 6-5-1 Buy American? It Depends.”

Motivation (Continued) The students will list their ideas on the board. The class will examine the list and look for trends.

Exports Goods and services that one country sells another country.

Imports Goods and services that one country buys from another country.

Balance of Trade A measure of goods (Not services) one country buys and sells with other countries.

Trade Deficit Unfavorable Balance of Trade The result when a country imports more than it exports

Trade Surplus Favorable balance of trade The result when a country exports more than it imports.

Balance of Payment A more comprehensive concept than balance of trade. The bookkeeping record of all the international transactions a country makes during a year. Not only imports, but also services such as transportation, travel, investment payments such as dividends and interest, and currency transactions between nations.

Independent Practice The students will do handout 7-5-2 Balance of Payments.