1. Homework/Announcements
Thursday April 9, 2015
Agenda
Homework/Announcements
Finish Posters
Present Posters
3 Question Review
Globalization and Trade Notes
Progress Reports Tomorrow

2. Civics and Economics Day 134

3. Posters
You have 5 minutes to find your poster, put on the finishing touches and be prepared to tell everyone about your industry.

4. North Carolina Economy Activity
Agriculture
Contemporary Finance
High-tech research
Furniture/Manufacturing
Leisure/Hospitality/Tourism

5. Industry Questions
Will your industry continue to exist in North Carolina?
If so will it face any challenges or difficulties?
Why is your industry important to North Carolina?
Why is your industry important to the World?

6. Which industry is most important to WC? Why?
Which industry is most important to NC? Why?
Which industry is most important to the World?

7. Review What is the difference between limited and unlimited liability?
What is the difference between Monopoly and Oligopoly?
Why does price matter so much in a pure competition?

8. Globalization and Trade notes

9. Where was McDonalds Founded?
1948 in California

10. Where is this? What restaurant is this?

11. Japan

12. Where is this?

13. Ponta Delgada, Azores (Portugal)

14. Where is this?

15. India

16. Where is this?

17. Romania

18. Where is this?

19. Asheville, North Carolina

20. Important Ideas in Globalization and Trade
Economics?
Opportunity Cost?
Trade Off?

21. Globalization
Name for the process of increasing the connectivity and interdependence of the worlds markets and businesses
“Shrinking the world” through sharing of information, ideas
Made Possible through TV and Internet!

23. Absolute Advantage
Exists when a person/Country can produce more of a certain good/service than someone else in the same amount of time or can produce a good using the least amount of resources.
Post Example:
Student 1: Is the best artist and has the best handwriting
Student 2: Has decent handwriting but is a terrible artist.
Should Student 1 do the whole project?

24. Bake Cakes Make Pizza Ms. Moody 2 cakes/hr. 6 pizzas/hr. Mr. Neanover
Who has the absolute advantage in producing cakes? Mr. Neanover
Who has the absolute advantage in producing pizza? Mr. Neanover
So, would Neanover be better off if he specializes and trades?

25. Comparative Advantage
A person or a nation has a comparative advantage in the production of a product when it can produce the product at a lower domestic opportunity cost than can a trading partner.
Ex: You are in a group and making a poster.
Student 1: Has great handwriting and is an ok artist
Student 2: Is a good artist but has terrible handwriting.
Which student should do which job?

26. Bake Cakes Make Pizza Ms. Cranston 2 cakes/hr. (1c = 3p) 6 pizzas/hr.
Mr. Neanover should specialize and trade if he has a
comparative advantage (lower opportunity cost)
in the production of one of the products.
Bake
Cakes
Make
Pizza
Ms. Cranston
2 cakes/hr.
(1c = 3p)
6 pizzas/hr.
(1p = 1/3c)
Mr.
Neanover
4 cakes/hr.
(1c = 2p)
8 pizzas/hr.
(1p = 1/2c)
Mr. Neanover has a lower opportunity cost in producing cakes; therefore, he should specialize in the production of cakes. Ms. Cranston has a lower opportunity cost in producing pizza; therefore, she should specialize in the production of pizza.

27. Pinson will specialize in cakes.
Terms of trade?
Bake
Cakes
Pinson will specialize in cakes.
Make
Pizza
Gray will specialize in pizzas.
Ms. Cranston
1c = 3p
For one cake, Moody would be willing to pay anything up to 3 pizzas.
1p = 1/3c
For one pizza, Moody will want more than 1/3 cakes.
Mr. Neanover
1c = 2p
For one cake, Neanover will want more than 2 pizzas.
1p = 1/2c
For one pizza, Neanover would be willing to pay anything up to ½ cake.

28. Another Example: Car Wash
Interior of the Car
Exterior of the Car
Opportunity Cost:

29. Which is Better for the World? Comparative or Absolute?
Answer: Comparative Advantage
Comparative advantage is the basis for all trade between individuals, regions, and nations.

30. Interdependence
Two or more people, companies, or countries that become dependent(need) on each other.