1. International Trade

2. Open economy = C + I + G+ (X-M) Adds in Exports and Imports, also known as…. International Trade!

3. An oldie but a goodie (1951) – How Foreign Trade Works http://www.youtube.com/watch?v=- 74YMKm2NE8 http://www.youtube.com/watch?v=- 74YMKm2NE8

4. Surplus: Exports>Imports, or Net exports what country does this??? Deficit: Imports>Exports, or Net imports know any country that does this?

5. The good side of each: Trade surplus = More money and jobs, since people are buying all your stuff Trade deficit = More stuff at cheaper prices! The bad side of each: Trade surplus = Less stuff for your own people; dependent on foreign buyers Trade deficit = Jobs and money are going overseas; dependent on foreign producers

6. DVD Video Ch. 37: Trade

7. APIP 7: Hatfields and McCoys

8. Comparative advantage Quality Price Variety

9. $180,000 a year – thats what!

12. Hint: It didnt turn out too well…..

15. DVD: Street Meet: G20 Protest http://www.youtube.com/watch?v=Y1yaTY4I qwk&feature=related http://www.youtube.com/watch?v=Y1yaTY4I qwk&feature=related

16. Thanks for your attention!