1. Interdependence and Specialization

2. Back to the Middle Ages…
In the beginning of the year we said that a medieval manor was self-sufficient. What did that mean? Are we still that way?

3. Specialization
situation where an individual or a country concentrates on a specific skill or task.

4. Specialization
For example, teachers specialize in providing education. Teachers usually do not cut their own hair or repair their own cars. They depend on a hair stylist and a mechanic for these services.

5. Interdependence
one country depending on other countries to get the goods and services they need or want.

6. French Wheat
Florida Strawberries
Columbian Coffee
Canadian Pork
Iowa Eggs
Consider a typical “American” breakfast. A single U.S farm doesn’t grow all the necessary ingredients. So what do we do?
We trade with other states and even other countries to get what we need and want.

7. Give an example of interdependence from our study of Medieval Africa.

8. Can we think of any other examples of interdependence in the world today?

9. International Trade
Imports: goods purchased from another country

10. Exports: goods sold to another country

11. Tariffs A tax that is added to an imported good or service.
This makes goods from other countries more expensive that those made in the United States.
Higher prices on imports leads to an increase in profits for domestic producers (people who make goods in the US).

12. Quotas
Limits set on the quantity of a good that a country may import. Quotas reduce the quantity supplied of the import and cause price increases.

13. Embargoes
An order that forbids a country to trade with another country.
Embargoes are often placed by the leader or President of a country.
Penalties for violating the embargoes are high. Embargoes can also be placed against a certain good or industry such as rough diamonds, narcotics, or weapons. Cuba is a country where the U.S. has a longstanding embargo.

14. Embargoes- Good or Bad?

15. Subsidies
Payments to producers for making or selling a certain good. For example, the government might pay farmers extra to plant corn. Or, they might pay them NOT to grow wheat.

16. Product Regulations
Laws that regulate production, manufacturing, transportation, or packaging of goods. These laws are meant to protect human, plant, and animal health.