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The Global Economy

The Global Economy. Unit VII Get out your notes from yesterday!. Benefits of Trade. Countries benefit from trade more when they concentrate on goods and services that it produces most efficiently. Imports- goods from other countries Exports- goods sold to other countries

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The Global Economy

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  1. The Global Economy Unit VII Get out your notes from yesterday!

  2. Benefits of Trade • Countries benefit from trade more when they concentrate on goods and services that it produces most efficiently. • Imports- goods from other countries • Exports- goods sold to other countries • Can you name one U.S. import? • One U.S. export? • Why has trading changed in the U.S. in recent decades? • Imagine how it will be for your generation as you work towards retirement. Discuss this with a friend.

  3. Absolute and Comparative Advantage • A country does not need to have an absolute advantage over another country in producing a certain good or service to benefit from trade • Absolute advantage- ability of one country to produce more output per unit of input than can another country • Specialization- concept that a nation should produce and export a limited assortment of goods for which it is partially suited in order to use its resources most efficiently • Comparative advantage- a country can produce a good at a lower opportunity cost than another.

  4. Financing World Trade • A nation has a positive balance of trade if the value of its exports is greater than the value of its imports • It has a negative balance of trade if the value of its imports is greater than the value of its exports. • BALANCE OF TRADE= VALUE OF EXPORTS - VALUE OF IMPORTS • Where do you put the U.S.? • Based on previous knowledge, where do we compare with China in this area?

  5. Restrictions on World Trade • As international trade continues to increase, intense debate goes on worldwide about the pros and cons of trade agreements and restrictions. • What are some topics that may be discussed in trade agreements and restrictions?????? • Protectionists- argue for trade restrictions; necessary to protect domestic industries • Supporters- argue against restrictions; market will take care of itself if left without restrictions

  6. Per Capita GDP Around the World • Economists use this as a measure of a nation’s prosperity. • There is a huge difference between developed and developing nations.

  7. Obstacles of Growth • Although developing nations receive capital from developed nations in the form of foreign investment and aid, they still face obstacles • Four Obstacles to Growth: • Attitudes and beliefs • Misuse of resources • Continued rapid population growth • Trade restrictions

  8. China’s Rapid Growth • Resulted from recent free market reforms. • Beijing is very similar to many, large American cities. • The legal protection of private property has encouraged the private investment necessary for China’s transition to a mixed economy. • China has encouraged foreign investment in its economy to promote growth and access to global markets.

  9. Getting a Computer • In your group, the computer person will be doing the research. Others can use their phones to look up pictures and various things needed. NO FACEBOOK, TEXTING (I don’t care if it’s your Mom) or TWEETING. • “Mr. Glenn, why can’t we all get computers?!” • Let’s be honest, you don’t ALL need them. • One person can find outside information about your person while the others do their jobs. • Pay attention to how the computers are put into the cart, they need to be put back the same way. • Two computers per slot, make sure each gets plugged into the charger in the slot you are returning it to. • WARNING: If they are not put back appropriately, we may not use them in the future for other activities.

  10. BEHAVIOR • This needs not be said, but: • Be working the whole time. • Ask your tutor or me for help or clarification • Check in with me about the information you receive. • Phones to be used for information/visual gathering only. Anyone caught using it for other purposes will be sorry. • If you are at a spot with little to do for your role, help out the others in your group. YOU ARE A TEAM ANDEVERYONE IS REQUIRED TO ROCK!!!

  11. Who are you, in the world???? • Group 1: China • Group 2: North Korea • Group 3: Iran • Group 4: India • Group 5: USA • Group 6: Japan • Group 7: Mexico • Group 8: Brazil • Group 9: Russia • Group 10: Taiwan

  12. Helpful Websites • You do not have to use these, but they may help: • www.google.com • http://en.wikipedia.org/wiki/Gross_domestic_product • https://www.cia.gov/library/publications/the-world-factbook/fields/2195.html • http://www.econlib.org/library/Topics/Details/comparativeadvantage.html • http://www.tutor2u.net/economics/content/topics/trade/comparative_advantage.htm • http://en.wikipedia.org/wiki/List_of_countries_by_exports • http://en.wikipedia.org/wiki/List_of_countries_by_imports

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