1. W ORLD H ISTORY / G EO J ANUARY 26 TH, 2015 WARM UP: Answer True or False for the following questions: 1) The United States exports more goods than it imports 2) A total of $412 million worth of goods comes into and out of the US every day 3) The top US trading partners are China and Japan 4) The United States is the world leader in the export of services 5) The US imports over 50% of the oil it uses 6) The US does not produce DVD player; instead, it imports them OBJECTIVE: SWBAT understand the nature and reason of international trade. STANDARDS: G.2.d; E.3.b; VII.i

2. C OPY THIS CHART ON YOUR OWN PAPER - Complete the “Know” and “Want to Know” portions (write at least three for each column) What do you know about trade? What do you know about globalization? What do you want to learn about trade? What do you want to learn about globalization? As we go through the Choices documents, write down interesting facts that you learn OBJECTIVE: SWBAT understand the nature and reason of international trade. STANDARDS: G.2.d; E.3.b; VII.i

3. I NTERNATIONAL T RADE : C OMPETITION AND C OOPERATION IN A G LOBALIZED W ORLD 1) The United States exports more goods than it imports 2) A total of $412 million worth of goods comes into and out of the US every day 3) The top US trading partners are China and Japan 4) The United States is the world leader in the export of services 5) The US imports over 50% of the oil it uses 6) The US does not produce DVD player; instead, it imports them FALSE: There is currently a trade deficit FALSE: $8.7 billion a day FALSE: Canada and China TRUE TRUE: 65% of oil is imported TRUE OBJECTIVE: SWBAT understand the nature and reason of international trade. STANDARDS: G.2.d; E.3.b; VII.i

4. I NTRODUCTION : T RADE AND THE G LOBAL E CONOMY Global economic crisis of 2008 Largest financial crisis since 1930s (GD) Spread rapidly because of the closeness of the world economy Trade Policy Influences The need to help certain businesses at home (blocking trade) The effects on countries well-being and job market Foreign policy concerns Allies Human rights OBJECTIVE: SWBAT understand the nature and reason of international trade. STANDARDS: G.2.d; E.3.b; VII.i

5. P ART I: U NDERSTANDING T RADE Trade: Led to exchange of scientific, religious, philosophical, and cultural ideas Multi-trillion dollar industry Goods-raw materials and manufactured goods Services-tourism, electricity, education Why people trade Gains to be had Allows people to specialize in the production of goods and services in which they have the resources to be most efficient and successful Economic benefits Less expensive, better, and unavailable goods New Markets Political gains Comparative advantage A business or person with the resources to produce a good or service more efficiently than another business OBJECTIVE: SWBAT understand the nature and reason of international trade. STANDARDS: G.2.d; E.3.b; VII.i

6. Negative Effects of Trade Disrupt local economies Focus on countries comparative advantage Unbalanced benefits Protectionism Economic strategy to limit trade in order to help domestic businesses Tariffs –taxes on imported goods Subsidies-Govt gives money to certain industries so that those businesses can charge lower prices and be more competitive on the world market Quotas- limit on imports P ART I: U NDERSTANDING T RADE OBJECTIVE: SWBAT understand the nature and reason of international trade. STANDARDS: G.2.d; E.3.b; VII.i

7. Free Trade Trade conducted without barriers Increases international trade Some countries have a comparative advantage Industrialized countries argue unfair advantage for poorer countries have advantage with more relaxed laws Environmental Safety Child labor Poor countries argue they cannot provide same standards P ART I: U NDERSTANDING T RADE OBJECTIVE: SWBAT understand the nature and reason of international trade. STANDARDS: G.2.d; E.3.b; VII.i

8. With your shoulder partner, finish reading Part I (beginning with ‘A New Era of Global Trade’) Continue to take notes then answer the questions on the study guide If you do not finish the study guide, please finish at home. There is a link to a website with the documents on Mrs. Johnson’s calendar If you cannot access the internet tonight, come in before school or at lunch to borrow a Choices spiral notebook Be prepared to discuss the Introduction and Part I tomorrow P ART I: U NDERSTANDING T RADE OBJECTIVE: SWBAT understand the nature and reason of international trade. STANDARDS: G.2.d; E.3.b; VII.i

9. EXIT: What is protectionism? Give at least two examples OBJECTIVE: SWBAT understand the nature and reason of international trade. STANDARDS: G.2.d; E.3.b; VII.i