What does this cartoon tell you about trade?

New Unit: Global Interdependence Global Trade Objectives: To examine the nature of global trade patterns. To understand what is meant by the term ‘trading bloc’ and name trading blocs. To research one ‘trading bloc’.

Why do we trade with other countries? Trading results from the uneven distribution of raw materials over the Earth’s surface. Important for all countries as none are totally self-sufficient. When did trade begin? Modern international trade began with European countries using raw materials found in their colonies.

Complete the worksheet on Trade Flows from 2006. Describe

Trading Blocs During the later part of the 20th century countries grouped together to try to increase the volume and value of their trade. Two of the earliest and largest trading blocs are the EU and NAFTA, each of which has an internal market of 500 million people. + By creating trading blocs, countries eliminate custom duties between member states therefore reducing the cost of products sold between them. + EU countries became more competitive against non-member countries such as Japan. Card Sort - Has meant it is increasingly difficult for LEDCs to sell their products to MEDCs, increasing the trade and development gap .

Homework Research into Trading Agreements and Trading Blocs: GATT  WTO – Ashvin & Jonnie OECD – Josh & Aaron NAFTA – Hannah & Zac What it stands for? When it was set up? Why it was set up? Who is involved? What does it do?

Using p387-388 in Nagle & p624 Waugh answer the following questions: What is ‘visible’ and ‘invisible’ trade? What is the ‘balance of trade’ and how is it ‘different to the balance’ of payments? How do import and export patterns differ between MEDCs and LEDCs? Explain what it means for a country to have a trade surplus or trade deficit. What is ‘protectionism’? Give example of how it controls trade. Draw a table to show the advantages and disadvantages of protectionism.