Trade Barriers - The World is Waiting for YOU!

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FORMS of GOVERNMENT
SS6CG4: The student will compare and contrast
various forms of government.
FORMS of GOVERNMENT
n
SS6CG4:
a. Describe the ways government systems
distribute power: unitary, confederation,
and federal
ESSENTIAL QUESTION
How is power distributed in different forms of
government (unitary, confederation, and
federal)?
Social Studies Theme:
GOVERNANCE
n
The student will understand that as society
increases in complexity and interacts with
other societies, the complexity of the
government increases.
What is Distribution of Power ?
The relationship between the
national or central government and
the smaller governmental divisions
(states, provinces, counties and
cities).
Types of Distribution
One thing that a country has to
decide is how to organize the
government and distribute
power
Unitary
Confederation
Federal
These terms are used to describe
WHO has the power in the
government, and WHO is the
decision maker.
Types of Distribution
UNITARY:
a form of government in which power is held by
one central government, this central government
can delegate (pass out) duties to smaller political
units, but the unitary government have the final
say!
Examples Leaders: Dictatorship, absolute monarchy
Examples of Countries: France
Constitution: YES!
Power is held by the central
authority or government
Types of POWER Distribution
Confederation
Loose alliance of countries or states
Each country or state has final control of its own
laws and citizens
Central government only makes decisions on issues that affect the whole
confederation
Can be unstable because everyone wants to do their “own thing”
Constitution: Most confederations are formed by a
treaty that may later turn into a constitution.
Commonwealth of Nations
After the British Empire broke up the
countries that were once colonies now
called themselves the “British
Commonwealth” After the British lost all
power these countries became known as
the COMMONWEALTH OF NATIONS
Power is held by the group of smaller
countries or states who are apart of
the Confederation
Example: European Union
The European Union is a great example
of a confederation! The European Union
uses the same currency, the Euro!
Types of Distribution
Federal:
A form of government in which power is divided between
one central government and smaller units like states.
Types of leaders:
Presidents, Prime Ministers
Examples of Federal governments:
United States, Canada, Brazil, Mexico
Power is shared between large
government and smaller governments
(states etc.)
Let’s put them together!
Unitary System
Confederation
Federal System
WORD BANK
FRANCE IS EXAMPLE
LOOSE ALLIANCE
CENTRAL GOVERNMENT DIVIDES POWER
UNITED STATES IS AN EXAMPLE
POLITICAL UNITS CONTROL THEIR OWN LAWS
CENTRAL GOVERNMENT HAS ALL POWER
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STANDARD
The student will
compare and
contrast various
forms of
government.
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Essential Question
How do citizens
participate in
different forms of
government?
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What is Citizen Participation
Voting Rights for all citizens.
Limited rights for citizens.
No rights for citizens.
WHO GETS TO PARTICIPATE?
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Citizens participate at
varied levels in
different government
systems.
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Autocracy
One leader has complete power
Opposite of democracy
Citizens have no participation
EXAMPLE:
German Nazis under
Adolf Hitler’s rule
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Autocracy
Oligarchy
Control lies with a small group of rich or powerful
people
Citizen participation is restricted to the ruling
group
EXAMPLE:
COMMUNIST GOVERNMENTS
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OLIGARCHY
Democracy
The people hold supreme power
People exercise their power by voting
All people have equal rights to participate in
government regardless of position or wealth.
EXAMPLE:
The United States
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Democracy
Read the statements by political leaders below.
Write A if they head an autocratic government.
Write O if they had an oligarchy.
D isto
they
head aasdemocracy.
“I amWrite
proud
serve
president of
D
1. ____
everyone has equal rights.”
a country where
O
2. ____ “My wealth and position will keep me in power in this
society”
A
3. ____ “I will imprison anyone who criticizes my government.
I am in total control.”
O
4. ____ “There is no reason to explain our position to the
people. We are in control here.”
D
5. ____ “Where can I register to vote for the presidential
election?”
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Lets make a Tree Thinking Map
Using your charts on Citizen Participation
your group will construct a tree thinking
map!
Read the statements by political leaders below.
Write A if they head an autocratic government.
Write O if they had an oligarchy.
Write D is they head a democracy.
D
1. ____ “I am proud to serve as president of a country where everyone has equal
rights.”
O
2. ____ “My wealth and position will keep me in power in this society”
A “I will imprison anyone who criticizes my government. I am in total control.”
3. ____
O “There is no reason to explain our position to the people. We are in control
4. ____
here.”
D
5. ____ “Where can I register to vote for the presidential election?”
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Parliamentary vs Presidential
Democracies
In Europe there are two main types of democratic government
Turn to page 138 in your coach book we will complete a “double bubble”
thinking map together!
Comparisons of Parliamentary
and Presidential Governments
Parliamentary System





Presidential System
Prime Minister heads
 Legislature- lawmaking body
parliament (the lawmaking)
 President-leader
body
Parliament selects Prime
 President is elected
Minister
 Legislature and President
Prime Minister can dissolve
serve a fixed amount of time
Parliament
Members of Parliament can  President does not make
vote to elect a new Prime
laws
Minister
May have a head of state with  The President is head of state
little power: king or queen
and chief executive
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STANDARD
SS6CG5
The student will explain the structure
of modern European governments.
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ESSENTIAL QUESTION
What are the benefits of countries
joining the European Union?
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THINK ABOUT IT
Do you think it’s beneficial for
European countries to join the EU?
Why or why not?
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1. What are 4 benefits of joining the EU?
NO TARIFFS
A.CAN MOVE FREELY TO ANOTHER COUNTRY
B. CAN LIVE AND WORK IN ANY EU COUNTRY
C. CAN VOTE IN ANY LOCAL ELECTION
D.
EURO
2. What is the common currency of EU members?
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3. How many European countries are members of the EU (2013)?
Members of the EU do not want Turkey because of location to Middle East
4. Give one reason
each
ofgood
theand
following
countries
are NOT
Therewhy
economy
is too
they don’t want
to mess it up
members of the EU:
Regulation on fishing
a. Turkey:
Wants to be an independent world leader
b. Switzerland:
c. Iceland:
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Economic Systems
Traditional, Command, Market, and Mixed
If you were starting a business
what would be the first 3
things to consider?
THE 3 ECONOMIC ?’s
1- What to produce
2- How to produce it
3- For whom to produce it for
* Let’s discuss this!
Traditional Economy
Customs and habits of the past are used to decide
what and how goods will be produced,
distributed and consumed.
Jobs are handed down from generation to
generation.
Very little change occurs over the generations
Primitive tools and methods are used.
Farming, hunting and gathering, and cattle
herding are examples of a traditional economy
Command Economy
The government makes the decisions on which goods and
services to produce.
Usually in a communist country
Workers are told what to produce and how much to produce
within a period of time (quota).
The wages earned by employees is set by the government.
The government does NOT always know what the people
need.
Luxury items like computers and televisions are priced high.
Market Economy
Known as capitalism and free enterprise
Businesses and farms are owned by individuals or corporations
with no government involvement
The law of supply and demand determines the price that
people pay for items
There is no true market economy today
The US is the closest to a true market economy
ECONOMIC CONTINUUM
MIXED ECONOMY
PURE MARKET
ECONOMY
• Individuals and
private businesses
DECIDE what is
produced, how it is
produced, and who
they will sell to
• Individuals and
private businesses
AND governments
DECIDE what is
produced, how it is
produced, and who
they will sell to
PURE COMMAND
ECONOMY
• The Government
DECIDES what is
produced, how it is
produced, and who
they will sell to
Mixed Economy
Most countries are MIXED economies.
Private citizens and corporations run
businesses and farms with some
government involvement.
Some examples are the U.K., Germany,
Russia, the U.S.
SS6E6 The student will analyze the
benefits of and barriers to voluntary
trade in Europe.
Compare and contrast different types of
trade barriers such as tariffs, quotas, and
embargos.
Explain why international trade requires a
system for exchanging currencies between
nations.
Trade and The
European Union
•EQ:
What are characteristics of the
three types of economic trade
barriers?
•How are they present in Europe?
What is the GDP?
Gross
Domestic
Total Amount
(Think “That’s a gross
amount!” meaning
ridiculously huge- this is
the TOTAL AMOUNT)
Product
Product= What is made
Domestic= AT HOME
So GDP is The total amount of products
made at home (or in any country)
What is PER CAPITA ???
EASY… Per Person!
So the GDP PER CAPITA is another way to
say the total amount of money made in a
country divided by each person to find the
“average” amount of income for that
country as a whole from products they
make!
European Union
The EU is the economic union of 27 countries in Europe.
Each country remains independent, yet the economies of
all members are joined into one big economy. There are
no barriers to the movement of goods, services, people,
and capital. The purpose of the EU is to make Europe
more successful in the world economy. The EU has 500
million people, which is 7% of the world’s population; it
produces 20% of the world’s GDP—more than the US.
Countries apply for admission to the EU. Citizens must
vote in favor of joining. Candidates must pass a multiyear review of their economic health.
Free-Trade Zone
A region that has no trade barriers among
countries. The European Union is a freetrade zone. Any goods from Poland can
enter Portugal without tariffs or quotas.
That’s not good news for workers, who face
competition from foreign goods; but
consumers love it. They can buy goods
from anywhere.
Currency Exchange
Currency is the money system of a country.
The US uses dollars. Poland uses zlotys.
Russia uses rubles. One US dollar equals
3.5 Polish zlotys. When the US sells goods
to Poland, the zlotys Poland pays must be
converted into dollars. Banks gladly
charge a fee to do this.
Euro
The euro is the common currency of 17
European nations in the Euro Zone.
France uses the euro as its currency; so does
Germany. When France sells goods to
Germany, there is no need to convert
currency. US$1 is 7.8 euros.
International Trade
Involves the exchange of goods or services
between countries
This is described in terms of
– Exports: the goods and services sold to other
countries
– Imports: the goods or services bought from other
countries
Free Trade Vs. Trade Barriers
– Free Trade: Nothing hinders or gets in the
way from two nations trading with each
other.
– Trade Barriers: Trade is difficult because
things get in the way.
There are costs and benefits related to free
trade as well as trade barriers.
Physical Trade Barriers
Geographic barriers can slow down trade
between nations by making it harder and
more expensive to move goods from place
to place
EX) Swiss Alps – to allow goods to move
through Switzerland more quickly, the
government is building tunnels through the
mountains
3 Economic Trade Barriers
The most common trade restrictions are:
1. tariffs—taxes on imported goods
2. quotas—limits on the quantity of goods that
are imported
3. embargoes-- a complete ban on trading
between countries
What is a Tariff?
A tariff is a tax put on goods imported
from other countries
The effect of a tariff is to raise the price of
the imported product
– It makes imported goods more
expensive so that people are more likely
to purchase products produced in the
home country
Tariffs in Europe
When countries outside of European Union
want to sell their goods in the EU, they
must pay tariffs
– This makes the non-EU products more
expensive than the products made by EU
members
• Which would you buy?
EX) If a US company wants to export fruit
to a country in the EU, the US company
must pay a tariff (makes US fruit more
expensive)
Quotas
A quota is a limit on the amount of goods that
can be imported from another country
Putting a quota on a good creates a shortage,
which causes the price of the good to rise.
– Consumers are less likely to buy this good
because it’s now more expensive than the
good produced in the home country.
– Quotas encourage people to buy domestic
products, rather than foreign goods (boosts
country’s economy)
Quotas in Europe
The EU places a quota on the amount of
steel that can be imported from certain
countries
– The effect is similar to a tariff, because it
makes steel from those countries harder to
get, and more expensive
– Helps steel producers within EU sell more steel
Embargos
Government orders a complete ban on
trade with another country
The embargo is the harshest type of trade
barrier and is usually enacted for political
purposes to hurt a country economically
and thus undermine the political leaders in
charge.
Embargoes in Europe
Recently, EU began placing embargoes on
the sale of certain weapons and other
technologies to Iran
– This was done because the countries of the EU
suspected Iran was trying to build a nuclear
bomb
EU countries hope that the embargo will
make it difficult for Iran to build this type
of weapon
Your Task:
You are going to create a
product
– It can be anything…
– Name your product and
draw a colorful picture of it
Questions about your Product
1.
2.
3.
4.
5.
Would you want to sell this product in
other countries? Why?
Why wouldn’t you want quotas when
selling this product?
Why wouldn’t you want tariffs when
selling this product?
Why wouldn’t you want an embargo
when selling this product?
Why might you want embargoes when
selling this product?
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