 Literacy Rate in US  99%  99% Male  99% Female  Which country is closer to the US literacy rate?  A. India  B. Indonesia  C. Japan

Which country has the lowest number of people that can read and write? A. India B. Indonesia C. Japan Why do you think they are so low?

 Poverty, cost of education, high unemployment, subsistence farming,

 12% of pop. below poverty line in US  US donates money 6.9 billion  India receives 2.9 billion in aid  Indonesia receives 67 billion in aid  China does not donate or receive officially  Japan donates 8.9 billion

Money What a nation can exchange in return for goods from another nation

 Tio got a penny bank for his birthday, and once it is filled up he can take it to Toys R Us and buy a game. He remembers that Zelda collects marbles and he doesn’t play with marbles anymore. So, he asks Zelda if she wants to buy them. Zelda has some quarters her mom gave her to play video games at Chuckie Cheese.

 Quarters won’t fit in Tio’s bank. Zelda gives him quarters for the marbles. Tio goes to his mom and gives her 2 quarters in exchange for 50 pennies.  When nations do this they have to do some special math because a dollar bill doesn’t always equal a dollar.

 In India $1 =  In Indonesia $1 =  In China $1 =  In Japan $1 =  45.3 Indian rupees  9,159 Indonesian rupiah  8 Chinese yuan  116 Japanese yen

 Values of different currencies are expressed in exchange rate  Exchange rate is the price of one nation’s currency in terms of another nation’s currency  Like the table on the last slide

 In India $1 = 45.3 Indian rupees  If we want to buy a computer from India for $1,000, we have to change $1,000 for about _______ rupees?  $1,000 US = 45.3 X 1,000 = 45,300 rupees

 US wants to buy a computer from Indonesia for $1,000 US.  $1 US = 9,159 Indonesian rupiah  Do the math

$1,000 US = 9159 rupiah X 1,000 = 9,059,000 rupiah

 Imports increase & are cheaper for consumers to buy  Travel abroad is cheaper for US tourists  US exports decline  US trade deficit increases

 US exports increase & prices of exports go up  Travel abroad is more expensive of US tourists  US imports declines & price of imports increases  Foreign investment in US businesses increases

 One advantage if a weak dollar is that A.Travel abroad is cheaper for Americans B.American income tax rates go down C.Imports are cheaper for Americans to buy D.American exports increase

$1 dollar = 8 Chinese yuan Stacy traveled to China and took $100 in US currency. When she exchanged the $100 for yuan, she received about a.8 b.80 c.800 d.8,000

 1. D  2. C