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TOK Economics Lesson #11. International Trade. Closed economy = C + I + G (Consumers + Investment + Government). Open economy = C + I + G + (X-M) Adds in Exports and Imports , also known as…. International Trade!. VIDEO TIME!. An oldie but a goodie (1951) –

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Tok economics lesson 11

TOK Economics Lesson #11

International Trade


Closed economy c i g consumers investment government
Closed economy = C + I + G(Consumers + Investment + Government)

Open economy = C + I + G+ (X-M)

Adds in Exports and Imports, also known as…. International Trade!


Video time
VIDEO TIME!

  • An oldie but a goodie (1951) –

    How Foreign Trade Works http://www.youtube.com/watch?v=-74YMKm2NE8


Trade surplus vs trade deficit
Trade surplus vs. Trade deficit

  • Surplus: Exports>Imports, or Net exports

    what country does this???

  • Deficit: Imports>Exports, or Net imports

    know any country that does this?


Which is better
Which is better?

The good side of each:

  • Trade surplus = More money and jobs, since people are buying all your stuff

  • Trade deficit = More stuff at cheaper prices!

    The bad side of each:

  • Trade surplus = Less stuff for your own people; dependent on foreign buyers

  • Trade deficit = Jobs and money are going overseas; dependent on foreign producers


Another video
Another video?

  • DVD Video Ch. 37: Trade


How does specialization explain why international trade is good?(Hint: everybody wins, at least in theory!)

  • APIP 7: Hatfields and McCoys


Why do we import things that we could produce here
Why do we import things that we could produce here?

  • Comparative advantage

  • Quality

  • Price

  • Variety


What s wrong with the buy american argument
What’s wrong with the “buy American!” argument?

  • $180,000 a year – that’s what!


Who wins from imposing tariffs who loses
Who wins from imposing tariffs? Who loses?


Who wins from imposing quotas who loses
Who wins from imposing quotas? Who loses?


What did the great depression teach us about using tariffs to protect jobs
What did the Great Depressionteach us about using tariffs to protect jobs?

Hint: It didn’t turn out too well…..


What are examples of embargoes on imports and exports
What are examples of embargoes on imports and exports?


How could industry subsidies be unfair to free traders
How could industry subsidiesbe unfair to free traders?


Is nafta a good thing or a bad thing how about the wto
Is NAFTA a good thing or a bad thing? How about the WTO?

  • DVD: Street Meet: G20 Protest http://www.youtube.com/watch?v=Y1yaTY4Iqwk&feature=related


That is all for today
That is all for today

Thanks for your attention!


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