1. International Trade and Global Economic Challenges

2. International trade is based on David Ricardo’s Theory of Comparative Advantage A country has an absolute advantage when it can produce a product more efficiently than can another country. Trade between countries is beneficial when one country has a comparative advantage – the ability to produce a product relatively more efficiently, or at a lower opportunity cost.

3. Imports Exports Protective Tariff Revenue Tariff Quota

4. National Defense Infant Industry Domestic Jobs Trade Imbalance (surplus v. deficit)

5. World Trade Organization - WTO (1995) G-20 General Agreement on Tariffs and Trade - GATT (1948) European Union - EU (1993) North American Free Trade Agreement - NAFTA (1994) Organization of Petroleum Exporting Countries – OPEC (1960) www.opec.orgwww.opec.org

6. What is the foreign exchange market and how does it affect the value of the dollar?

7. Emerging Markets The Asian Tigers Outsourcing Developing Countries IMF World Bank Grameen Bank and Microlending