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Chapter 1

Chapter 1. What is a Zero-Sum Game. What do these two expressions mean? How would you describe international trade and why?

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Chapter 1

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  1. Chapter 1

  2. What is a Zero-Sum Game • What do these two expressions mean? • How would you describe international trade and why? Zero-Sum Game situation in which one participant's gains result only from another participant's equivalent losses. The net change in total wealth among participants is zero; the wealth is just shifted from one to another.Read more: www.investopedia.com/ Win-WinSituation guaranteeing a favourable outcome for everyone involved www.thefreedictionary.com

  3. Import/Export Businesses • manufacturer • export department (in-house) • import/export companies (outsource) • independent • Middleman sells imports or exports—every manufacturer that is not exporting overseas can be your client What percent of U.S. manufacturers sell overseas? ONLY 10%

  4. Balance of Trade • The U.S has the largest surpluses and deficits What is a surplus? export more than import What is a deficit? import more than export • Since 1975—U. S. deficits have increased See p. 5 textbook

  5. Leading Exporters and Importers See p. 6-7 textbook Find your country! Look at the charts. What surprises you? --------------------------------------- Glossary—p. 351-385 Look up harmonized code. Harmonized Code

  6. Trade Integrations • North America NAFTA • world’s largest trading block • Europe EU • removed barriers w/in EU (central & eastern Eur new members • Asia “Tigers” • trade has expanded fastest in this region • China and India • most populous • Africa • need for modernization, development • lots of natural resources

  7. Key Organizations • World Trade Organization • International Monetary Fund (IMF) Integration • World Bank • WTCAWTCAservicesMember Cities

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