1. Trade & Restrictions

2. Trade
Scarcity
Imports
Exports
Balance of payments
surplus
deficit

3. Comparative Advantage
Definition
Specialization
Absolute advantage

4. Exchange Rates Factors 1. Inflation 2. Interest rates
Cost-push
Demand-pull
2. Interest rates
3. Current account deficits
4. Public debt
5. Terms of trade(balance of payment)
Ratio comparing export prices to import prices
6. Political stability
$1 US =
0.72 Euros
0.59 British pounds
6.26 Chinese Yuan
Japanese Yen

5. Balance of Trade Difference between value of exports and imports
surplus
Deficits
effects

6. Interdependence Nations dependent on each other for certain goods
Ex: US imports 50% of oil used
Ex: US imports 98% of manganese,93% of bauxite,, 81% of the tin, and 62% of mercury used for industry

7. Globalization Trade also effects Foreign policy Spread of culture
inventions

8. Trade Organizations European Union (EU)
North American Free Trade Agreement (NAFTA)
World Trade Organization (WTO)

9. Protectionism
Tariffs
Quotas
Sanctions
Subsidies
embargos

10. Protectionism
Do you believe in protectionism or free trade? Defend your opinion with 2 specific reasons. Thesis:________________________________________________________________________________________________________ Evidence #1:____________________________________________ Analysis:________________________________________________________________________________________________________ Evidence #2:____________________________________________

11. Trade
Developing nations