Return to Our Essential Question(s)…..

1. Return to Our Essential Question(s)….. What are the major physical features of Latin America and the Caribbean, and where are they located on a map? What are the major countries of Latin America and the Caribbean, and where are they located on a map?

6. R55“Specialization”

7. Today’s Standard….. SS6E2 The student will give examples of how voluntary trade benefits buyers and sellers in Latin America and the Caribbean and Canada. a. Explain how specialization encourages trade between countries.

8. Intro to Our Essential Question(s)….. How does “specialization” in production encourage or help trade between countries? How can specialization benefit consumers?

9. “Specialization” When a country focuses on producing the one or few thing(s) that it can produce most easily. Keeps supplies high & prices low

10. When a country puts most of it’s effort into producing only the good(s) and/or service(s) it can produce most easily & efficiently (fast & cheap) Examples: Venezuela→ Oil Guatemala→ Coffee Specialization increases trade because countries can get what they need/want at the lowest cost. Example: Guatemala can produce high quality coffee very cheap, but it can’t produce wheat. The USA can produce high quality wheat very cheap, but not coffee. So…… If Guatemala trades us coffee for wheat, we’ll all get the stuff we want for cheaper→ Everybody wins!!!!!!! If the supply or demand of the product go down, you may lose the ability to make money. “Don’t put all your eggs in one basket!”

11. Read the specialization example below (complete fiction), and then answer the questions. 1. Which country produces tires more efficiently? _____________________________________ 2. Which country produces blue jeans more efficiently?_________________________________ 3. Explain what & why these countries should trade with each other: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ BRAZIL MEXICO Mexico should produce jeans & Brazil should produce tires b/c both countries would get tires and jeans at the lowest possible price. They would also avoiding wasting time & energy producing something that a trading partner can produce more efficiently. Tires→ 100 Tires / 5 Hrs. = 20 Tires/Hr. Jeans→ 50 Pairs / 3 Hrs. = 16.66 Pairs/Hr. BRAZIL Tires→ 50 Tires / 8 Hrs. = 6.25 Tires/Hr. Jeans→ 100 Pairs / 1 Hr. = 100 Pairs/Hr. MEXICO

12. Specialization – Guatemalan Coffee

13. Return to Our Essential Question(s)….. How does “specialization” in production encourage or help trade between countries? How can specialization benefit consumers?