Economics for leaders
1 / 29

Economics for Leaders - PowerPoint PPT Presentation

  • Uploaded on

Economics for Leaders. Lesson 10: International Markets. Countries don’t trade . People Do !. Voluntary Trade Creates Wealth - ALWAYS. International trade. National trade. Regional trade. Local trade. Balance of Payments. Current Account. Capital account. Goods & Services.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about ' Economics for Leaders' - jayme

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Economics for leaders

Economics for Leaders

Lesson 10:

International Markets

Countries don t trade
Countries don’t trade


Do !

Voluntary trade creates wealth always

Voluntary Trade Creates Wealth - ALWAYS

International trade

National trade

Regional trade

Local trade

Balance of payments
Balance of Payments



Capital account

Goods &


Financial flows

Erp 5 understanding based on knowledge and evidence imparts value to opinions
ERP-5: Understanding based on knowledge and evidence imparts value to opinions.

Opinions matter and are of equal value at the ballot box. But on matters of rational deliberation the value of an opinion is determined by the knowledge and evidence on which it is based. Statements of opinion should initiate the quest for economic understanding, not end it.

Economic Reasoning Principle #5:

Understanding based on knowledge and

evidence imparts value to opinions.

Opening Markets Is Creating Wealth imparts value to opinions.

Who should produce what
Who should produce what? imparts value to opinions.

  • The Law of Comparative Advantage

    • Through specialization and exchange, both parties can gain from lower costs and greater output – even if one party does both things better.

What is your lowest opportunity cost alternative?

Comparative advantage producing a meal
Comparative Advantage imparts value to opinions.Producing a Meal




10 min

40 min

30 min


20 min

30 min

70 min


Opportunity costs
Opportunity Costs imparts value to opinions.



1/2 cleaning

4/3 cleaning



2/1 cooking

3/4 cooking

What will ken barbie do
What Will Ken & Barbie Do? imparts value to opinions.

  • Working Independently

    • Barbie Produces a Meal in 30 Minutes

    • Ken Produces a Meal in 70 Minutes

  • Barbie Has An Absolute Advantage

  • Would Barbie Produce Two Meals?

  • With Trade/Cooperation

    • Barbie Spends 20 Minutes Cooking

    • Ken Spends 60 Minutes Cleaning

    • They Both Gain!

Remember nations are not different
Remember imparts value to opinions.Nations Are Not Different

  • Goods are Produced at Least Cost When People Specialize According to the Principle of Comparative Advantage

  • Lesson - Don’t Try to Do Everything; It is Not Efficient

  • Trade Between Countries Creates Wealth

  • Examples

    • Ken and Barbie Have Time for Other Activities

Zeke and zac
Zeke and Zac imparts value to opinions.

  • Who Should:

    • Drive the truck ?

    • Load the garbage?

What if – Zac doesn’t have a drivers license?

Banana size regulations
Banana size regulations imparts value to opinions.

Mexican truck now allowed on us highways
Mexican Truck Now Allowed on US Highways imparts value to opinions.

NAFTA imparts value to opinions.

Wto formerly gatt
WTO (formerly GATT) imparts value to opinions.

European monetary union
European Monetary Union imparts value to opinions.

Trade balance
Trade Balance imparts value to opinions.



Pierre sells exports bread then what
Pierre Sells (Exports) Bread . . . imparts value to opinions.Then What?

What can pierre do with us
What Can Pierre Do with imparts value to opinions.$$US?

Take his Cheri to his favorite bistro at the Eiffel Tower?

Mais NON!

Buy U.S goods & services


U.S. assets ?

Oui! Oui!