Presentation on theme: "International Trade. Open economy = C + I + G+ (X-M) Adds in Exports and Imports, also known as…. International Trade!"— Presentation transcript:
Open economy = C + I + G+ (X-M) Adds in Exports and Imports, also known as…. International Trade!
An oldie but a goodie (1951) – How Foreign Trade Works 74YMKm2NE8 74YMKm2NE8
Surplus: Exports>Imports, or Net exports what country does this??? Deficit: Imports>Exports, or Net imports know any country that does this?
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
DVD Video Ch. 37: Trade
APIP 7: Hatfields and McCoys
Comparative advantage Quality Price Variety
$180,000 a year – thats what!
Hint: It didnt turn out too well…..
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