1. 7.5 Analyze the economic indicators of the business cycle
7.6 Analyze the costs and benefits of global trade

2. Warmup
Draw a map of the world to the best of your ability. Name as many countries as you can.

4. Unemployment and Poverty
Civilian labor force- civilians 16 or older working or looking for work
Full Employment- unemployment rate 4-6%
Underemployment- people working at a job in which they are overqualified or part-time

5. Poverty rate- percentage of people who live in households below the poverty threshold-income not sufficient to support household(One person: $11,344, Two adults w/two children: $22,133)

6. Slicing the apple Q’s
-List out all of the countries that you see that manufacture parts for an iPhone.
-A company called Foxconn manufactures the iPhones, how much profit do they pull in?
-How much money does Apple make on each iPhone?
-How is apple able to charge so much for iPhones?
-Who benefits the most: the contributing component manufacturers, the consumers, Foxconn, or Apple?

7. International Economics

8. I. Why nations Trade Comparative advantage
Nations specialize on the goods that they produce the best, trade to get other goods

10. Global interdependence
In our globalized economy, every nation is dependent on the rest
helps increase production among all

11. II. Balance of Trade
Balance of Trade- relationship b/w a nation’s imports and exports that effects its currency
Trade Surplus- more exports than imports, leads to a strong currency

12. Trade deficit- more imports than exports, leads to a weak currency

20. World Map Locations United States China Russia Ukraine India Malaysia
South Korea
Germany
Italy
Japan
Afghanistan
Brazil
Cambodia
Colombia
Mexico
Canada
France
England
Spain
North Carolina
Iran
Pakistan

21. III. Trade Barriers quota- strict limit on imported goods
tariff- tax on imported goods
subsidies- US gov’t supporting a US industry

22. Protectionism-
creating trade barriers to foreign trade in order to make a nation’s goods more competitive
Protectionism may restrict competition, hurt innovation, and lead to trade wars

23. IV. Free Trade
The goal of free trade agreements are to eliminate trade barriers
Advantages- competition, growth among all, int’l specialization

24. Disadvantages- economic vulnerability, jobs can be outsourced (sent to an external provider)
World Trade Organization (WTO)- negotiates new trade agreements and works to expand world trade

25. European Union (EU)- European nations have eliminated trade barriers and created a common currency
North American Free Trade Agreement (NAFTA)- goal to eliminate barriers b/w Mexico, Canada, and US

26. Review How do nation’s seek to gain a comparative advantage?
How can a country respond if its currency depreciates?
What are some consequences of protectionism?
Name an international trade organization and state what it does.

27. V. Developing Nations
Developing nations are characterized as having low per capita GDP, poor health, infrastructure, etc
Free trade has helped more than economic aid in lifting developing nations out of poverty

29. World Bank- lends to developing nations to reduce poverty
International Monetary Fund (IMF)- seeks to stabilize exchange rates and encourage good economic policy