1. Free Trade & State/Local Economies

2. Government Regulation of Competition
Competition is GOOD!!!!!
Monopolies: Market is controlled by one business - often results in high prices and low-quality products
Sherman Anti-Trust Act (1890): Banned monopolies & illegal business combinations
The government has used the Sherman Anti-Trust Act to prevent a single business owner from controlling prices & products
JP Morgan’s Northern Securities in 1904
John D. Rockefeller’s Standard Oil in 1911
AT&T in 1974
Microsoft in 2004

3. Government Regulation of Competition
Natural monopolies – LEGAL: Local utilities like water, electricity, natural gas, cable, etc.
Competition isn’t efficient, so businesses are allowed to be monopolies but are heavily regulated by the govt. to ensure proper market practices.
Oligopolies – market control by a few – LEGAL
- Car manufacturers, oil companies, etc.

4. Government Regulation of Competition
Mergers: Combination of businesses
LEGAL as long as the merger does not create a monopoly. The govt. can prevent a merger that will cause one.
Vertical integration: Merge different levels/stages of production.
Horizontal integration: Merger of “like” companies for efficiency.

6. International Trade
International trade is another way to promote competition and provide more options for consumers
Countries specialize in certain products -
For example, the U.S. cannot produce bananas
Developing countries cannot produce airplanes, cars, etc.
Countries produce what they are good at producing & export them to other countries. They import what they need.

7. International Trade
Economic interdependence: All countries depend on one another to produce the things each country wants & needs.
Environmental & political problems in one country can cause economic problems in other countries.
Governments must make agreements with one another to ensure that their citizens have access to products from other countries.

8. International Trade Policies
Free Trade Agreements: Nations agree to increase trade with one another and reduce barriers to trade, like tariffs & quotas.

9. International Trade Policies
Protectionist Trade Policies: Many nations limit imports to protect domestic producers of the same product.
Tariffs: Taxes on imports - Make prices for the imported goods more expensive
Quotas: Limits on the number of imports

10. STATE & LOCAL ECONOMIES

11. TOP 10 U.S. EXPORTS

12. North Carolina’s Major Industries
Agriculture
Aquaculture
Industry
Furniture
Forestry
Textiles
Defense

13. Agriculture Industry Tobacco, cotton, corn, peanuts, soybeans & wheat
¨Information and software technology, defense, automotive, financial services, green and sustainable energy, aerospace and aviation, biotechnology and pharmaceuticals.
More of a global economy than ever
Charlotte has the second largest number of banking headquarters in the U.S.
Industry

14. Local Economy: Wake County
Aside from agriculture (47th out of 100 counties in NC!), Wake County is also home to RTP
RTP is a major industrial hub including industries such as Biotechnology and Life Sciences, Clean and Green Energy, Banking, Gaming, Information Technologies, and Wireless Communications