Bell Ringer #22 – 5/17/11
1.
2.
3.
What is the European Union?
How many nations are part of
the EU?
Explain the EU policy of
“Shengen”.
Natural Resources in the World
 Natural
resources are not distributed
evenly throughout the World.
 Nations along the equator specialize in
tropical fruit, while colder nations have
thick trees and sell wood.
 The Middle East has a lot of oil. Japan
has no oil and must trade goods for oil.
Absolute Advantage
 Absolute
Advantage is the ability of a
nation, region, or company to produce a
certain good or service more efficiently
and cheaply than any other place.
 Ex: Potatoes in Idaho, oranges in Florida,
coffee in Colombia.
 Lawyer Example: If a lawyer can type 120
wpm & his secretary types 100 wpm, he
has absolute advantage in both practicing
law and in typing.
Comparative Advantage
 Comparative
Advantage is the
ability of a nation or company to
produce a certain good or service
based upon need and specialization.
 Lawyer Example: Even though lawyer
types faster, his comparative
advantage for making $$ is in
practicing law, so he should leave
typing to secretary.
Customs Inspector
 The
U.S. Customs Service
employs 19,000 people who
regulate travel and billions of
dollars in goods that enter
and leave the U.S. each
year.
 To qualify, applicants must be
U.S. citizens, pass physical &
written exams, background
check, and 11-week lawenforcement course.
Homework
Read
Ch 18, Sec 1
Answer 1, 2, & 3ab on
page 430.
Bell Ringer #23 – 5/18/11
1.
2.
3.
Give an example of a professional who
has “absolute advantage” over the
average person, when it comes to a
specific skill.
What does “comparative advantage”
mean?
Describe the career of a U.S. Customs
Inspector.
Exchanging Foreign Currency
 Foreign
exchange markets - when
buying and selling exists that uses
two different currencies. Through
such a market, currencies are
converted into other currencies.
 Foreign exchange rate – the value
of one currency in relation to another.
Devaluation
- A.K.A. “depreciation”
exists when one nation’s currency
decreases in value relative to other
currencies.
 When a nation’s currency is devalued,
its products become cheaper to other
nation; at the same time, other nations’
products become more expensive to
buying in the devalued nation.
 Devaluation
Partner Assignment
Read
“an Education for
the Global Economy” on
page 434.
Copy and answer
questions 1 & 2.