International trade

EQ: How have current trade policies and agreements impacted the growth of the U.S economy and the American worker?

Key terms and concepts Exports Imports Absolute Advantage Comparative Advantage Tarff Protective Tariff Revenue Tariff Quotas Protectionist Free Traders Most Favored Nation Five Arguments for Protection World Trade Organization Foreign Exchange Rate Trade Deficit Trade Surplus

Exports vs imports Imports: The goods and service that a country buys from other countries. This varies from country to country on what they can produce. Ex. U.S imported phone system devices including smartphones: US$104.9 billion (up 76.8% from 2015 Ex. Fuel, especially crude oil, is still a major import for many US states. Exports: The goods and service that a country produces and sells to other countries. Ex. Wheat, Corn and sweet Oregon timber

Absolute vs comparative advantage Absolute: When a country can produce a good or service more efficiently than another country and thus has the upper hand. Basically they have an advantage in all the areas known as The Factors of Production. Comparative: When a country has the ability to produce a product relatively more efficiently, or at a lower opportunity cost. Basically a country has the advantage in one of the Factors of Production.

Group Discussion What are 3 comparative advantages other countries (Specifically China) have over the United States?

Tariffs and quotas Tariff: is a tax placed on imports to increase their prices in the U.S market. Quota: Is a limit placed on the quantities/number of a product that can be imported into the U.S market. Are they good or bad for the American Economy, namely the American consumer?

Protective vs revenue tariffs Protective: is a tax high enough to protect less efficient U.S industries. Ex. In Denmark an American made car has a 100% tax on the purchase of the car. If the price of the next car 10,000 Dollars, then with the tax, it costs $20,000. Revenue: Is a tax that is high enough to generate money for a country but not so high that U.S industries can’t compete. Ex. Duties on alcohol

Protecting Domestic Jobs Money at home Balance Payments As a table Group define and give examples for the 5 arguments of protectionism National Defense Infant Industries Protecting Domestic Jobs Money at home Balance Payments

World trade organization (wto) Administers trade agreements Settles trade disputes between countries Organizes trade negotiations Provides assistance and training to developing countries Basically the Ref of world trade

Trade deficit or surplus According to the video on China and NAFTA, what has been the result?