JANUARY 26TH, 201
WORLD HISTORY/ GEO
WARM UP:
Answer True or False for the following
questions:
1) The United States exports more goods than it
imports
2) A total of $412 million worth of goods comes
into and out of the US every day
3) The top US trading partners are China and
Japan
4) The United States is the world leader in the
export of services
5) The US imports over 50% of the oil it uses
6) The US does not produce DVD player;
instead, it imports them
OBJECTIVE: SWBAT understand the nature and reason of international trade.
STANDARDS: G.2.d; E.3.b; VII.i
Complete the “Know” and “Want to Know” portions
(write at least three for each column)
What do you
know about
trade?
What do you want
to learn about
trade?
What do you
know about
globalization?
What do you want
to learn about
globalization?
As we go through
the Choices
documents, write
down interesting
facts that you
learn
OBJECTIVE: SWBAT understand the nature and reason of international trade.
STANDARDS: G.2.d; E.3.b; VII.i
COPY THIS CHART ON YOUR OWN PAPER-
INTERNATIONAL TRADE: COMPETITION AND
COOPERATION IN A GLOBALIZED WORLD
1)
The United States exports more goods than it imports
FALSE: There is currently a trade deficit
2)
A total of $412 million worth of goods comes into and
out of the US every day
FALSE: $8.7 billion a day
3)
The top US trading partners are China and Japan
FALSE: Canada and China
4)
The United States is the world leader in the export of
services
TRUE
5)
The US imports over 50% of the oil it uses
TRUE: 65% of oil is imported
6)
The US does not produce DVD player; instead, it
imports them
TRUE
OBJECTIVE: SWBAT understand the nature and reason of international trade.
STANDARDS: G.2.d; E.3.b; VII.i
INTRODUCTION:
TRADE AND THE GLOBAL ECONOMY

Global economic crisis of 2008
Largest financial crisis since 1930s (GD)
 Spread rapidly because of the closeness of the world economy


Trade Policy Influences
The need to help certain businesses at home (blocking trade)
 The effects on countries well-being and job market
 Foreign policy concerns

Allies
 Human rights

OBJECTIVE: SWBAT understand the nature and reason of international trade.
STANDARDS: G.2.d; E.3.b; VII.i

Trade:
Led to exchange of scientific, religious, philosophical, and
cultural ideas
 Multi-trillion dollar industry

Goods-raw materials and manufactured goods
 Services-tourism, electricity, education


Why people trade

Gains to be had


Allows people to specialize in the production of goods and services in
which they have the resources to be most efficient and successful
Economic benefits
Less expensive, better, and unavailable goods
 New Markets
 Political gains


Comparative advantage

OBJECTIVE: SWBAT understand the nature and reason of international trade.
STANDARDS: G.2.d; E.3.b; VII.i
PART I: UNDERSTANDING TRADE
A business or person with the resources to produce a good or service more
efficiently than another business
PART I: UNDERSTANDING TRADE

Negative Effects of Trade
Disrupt local economies
 Focus on countries comparative advantage
 Unbalanced benefits


Protectionism
Economic strategy to limit trade in order to help
domestic businesses
 Tariffs –taxes on imported goods
 Subsidies-Govt gives money to certain industries so
that those businesses can charge lower prices and be
more competitive on the world market
 Quotas- limit on imports

OBJECTIVE: SWBAT understand the nature and reason of international trade.
STANDARDS: G.2.d; E.3.b; VII.i
PART I: UNDERSTANDING TRADE

Free Trade
Trade conducted without barriers
 Increases international trade

Some countries have a comparative advantage
 Industrialized countries argue unfair advantage for
poorer countries have advantage with more relaxed
laws

Environmental
 Safety
 Child labor


Poor countries argue they cannot provide same
standards
OBJECTIVE: SWBAT understand the nature and reason of international trade.
STANDARDS: G.2.d; E.3.b; VII.i
PART I: UNDERSTANDING TRADE
With your shoulder partner, finish reading Part I
(beginning with ‘A New Era of Global Trade’)
 Continue to take notes then answer the questions on
the study guide
 If you do not finish the study guide, please finish at
home.

There is a link to a website with the documents on Mrs.
Johnson’s calendar
 If you cannot access the internet tonight, come in before
school or at lunch to borrow a Choices spiral notebook


Be prepared to discuss the Introduction and Part I
tomorrow
OBJECTIVE: SWBAT understand the nature and reason of international trade.
STANDARDS: G.2.d; E.3.b; VII.i
EXIT:
What is protectionism?
Give at least two examples
OBJECTIVE: SWBAT understand the nature and reason of international trade.
STANDARDS: G.2.d; E.3.b; VII.i