Warm-up 1. Complete the chart handed out on the last lesson and glue it on your warm- up page. 2. Once you are finished begin reviewing for the vocab quiz

After the Quiz 1. Get the Global Economy worksheet and complete the vocabulary and textbook reading exercise. 2. Get the Study Guide for the test next class. Put it on page 152.

A GLOBAL ECONOMY

PREVIEW Look at the tag on the item of your clothing. Where was it made?

Vocabulary Worldwide markets in which the buying and selling of goods and services by all nations takes place Global Economy Goods purchases from another country Imports Introduction of a new idea, method or device Innovation Limit on the amount of foreign goods imported into a country Quota To sell goods to another country Export Policy of reduced trade barriers Free trade Tax on imported goods Tariff When people, businesses, regions and nations concentrate on goods and services they can produce better than anyone else Specialization

Fill-in 1. trade 10% exported goods imported abroad enjoy economics scarcity resources wantsneeds nations Trade scarcity

What is a Global Economy? A worldwide market in which the buying and selling of goods by all nations takes place.

Why do Virginia and the US trade with other nations? 1. To obtain goods and services they cannot produce themselves or cannot produce efficiently themselves. (import) Can you think of other examples?

2. To buy goods and services at a lower cost or a lower opportunity cost.

3. To sell goods or services to other countries (export) 3. To sell goods or services to other countries (export) 4. To create jobs 4. To create jobs

Why do Virginia and the US specialize in the production of certain goods and services? To promote efficiency and growth of the economy To promote efficiency and growth of the economy Examples- what do you think of when I say - Examples- what do you think of when I say - Idaho? Idaho? Wisconsin? Wisconsin? Florida? Florida? Georgia? Georgia? Virginia? Virginia?

What is the impact of technological innovations on world trade? 1. Innovations in technology contribute to the global flow of information, capital, goods, and services Examples- Internet 2. The use of such technology also lowers the cost of production

WWWW1 U.S. Trade Partners The top ten trading countries with whom the United States trades include, in order of amount of trade, Canada, Mexico, Japan, China, Federal Republic of Germany, United Kingdom, Republic of Korea, France, Taiwan, and Italy. These countries make up about 71% of U.S. imports and about 65% of U.S. exports.

How much will your money buy in other countries? hicdetail/2012/01/daily-chart-3 hicdetail/2012/01/daily-chart-3

What are some barriers to free trade? 1. Free trade is the policy of reduced trade barriers. 2. Limits on free trade can be- tariffs- tax on imported goods tariffs- tax on imported goods Quotas- limit on the amount of goods imported Quotas- limit on the amount of goods imported

Reading Activity After you listen to the story “An Orange in January”, explain how the orange represents a global economy. After you listen to the story “An Orange in January”, explain how the orange represents a global economy.

Can getting involved in a global economy help your country prosper? Decide after watching the following presentation on Dubai.

Homework Study for the test Study for the test