1. Agenda Graph Making Review Globalization, Trade, and Protectionism Notes Pass out Progress Reports Progress Reports are due by Wednesday

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8. Globalization Opportunity Cost Absolute Advantage Comparative Advantage

9. Answer: Comparative Advantage Comparative advantage is the basis for all trade between individuals, regions, and nations.

11. 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!

12. 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?

13. 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?

14. Bake Cakes Make Pizza Ms. Cranston2 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 should specialize and trade if he has a comparative advantage (lower opportunity cost) in the production of one of the products. 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.

15. Interior of the Car Exterior of the Car Opportunity Cost:

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

17. Bake Cakes Pinson will specialize in cakes. Make Pizza Gray will specialize in pizzas. Ms. Moody1c = 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. Neanover1c = 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.

18. Imports Goods and services purchased from other countries If exports=imports then there is a balance of trade Exports Goods and services sold to other countries More imports than exports= trade deficit More exports than imports= trade surplus

20. The price of one country’s currency expressed in another country’s currency. Broken into buying and selling rate $1=.69 British Pounds $1= 15.18 Mexican Pesos $1=.95 Euros $1= 120.41 Japanese Yen $1= 6.21 Chinese Yuan

22. Attempting to shield the economy from changes brought by trade

23. The government contributing money to make the price lower. Example: 1 Bushel of Corn = $70 Government pays the farmer $40 Consumers can buy corn now for $30

25. Sanctions- Government restricting trade or investment in a country Embargo What is it?

26. A Maximum and/or a minimum amount of something