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Specialization & Interdependence Ms. Ramos Alta Loma High School.

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Presentation on theme: "Specialization & Interdependence Ms. Ramos Alta Loma High School."— Presentation transcript:

1 Specialization & Interdependence Ms. Ramos Alta Loma High School

2 How does specialization lead to Economic Interdependence? Ms. Ramos

3 How did people live 200 years ago? Ms. Ramos

4 They grew their own food, built their house, made their own tools & clothing, and performed many other tasks themselves. Ms. Ramos

5 Specialization Improves Productivity Smith wrote about advantages of specialization –Division of labor As productivity increases, more G&S are available & standard of living increases Ms. Ramos

6 Need lg society to sustain Ms. Ramos

7 Specialization Encourages Trade Dont produce everything- need to trade We trade with others because it frees up time and resources to do things that we are better at - Charles Wheelan Are we able to be self sufficient today? Ms. Ramos

8 Trade is a VOLUNTARY EXCHANGE Traditional economies- Barter Market economies- money Ms. Ramos

9 Money is … –Useful when value generally accepted –Easy to carry –Convenient for transactions Ms. Ramos

10 Trade creates Economic Interdependence depend on others/ other countries Ms. Ramos


12 Columbian Coffee Florida Orange Juice Idaho Potatoes Iowa Eggs Nebraska Pork Kansas Wheat

13 Smith & the Founders believed trade & econ interdependence were key to nations growth –Prob when states est trade barriers w/one another –Difficult to develop national economy Ms. Ramos

14 Ms. Ramos

15 Not to worry!!!…. Commerce Clause Art. I, sec. 8 to the rescue Congress shall have the Power…To regulate Commerce with foreign Nations, and among the several states Ms. Ramos

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