Lesson Four Specialization and Interdependence The Economy of Michigan Unit Two:

The BIG Ideas  We can’t produce everything we need or want, so people trade to get things.  People, states, and countries specialize in producing certain goods and services.  The more people, states, and countries specialize and trade, the more interdependent they become.  Trade is important to the economy of Michigan.  Michigan exports goods like cars to other places.  Michigan imports goods like computers and bananas from other places.

 As a teacher, do I provide goods or services?  What kind of services do I provide?  Do you think I made my clothes and shoes? Why or why not?  What economic term relates to the idea that people produce certain kinds of goods and services but not others?

specialization when individuals, regions, and countries produce certain kinds of goods or services Example: Specialization results in people producing fewer goods and services than they consume.

How do I get the goods I don’t produce like my clothes and my shoes? People trade to get the goods and services they do not produce. In most, cases they trade money for the goods and services.

trade to exchange one thing for another Example: People often trade money for goods.

What Happens When People Specialize? People use _________________________ to produce ___________________ and ______________________ BUT Resources are ____________________ AND Human wants are ____________________Which creates ________________________ because of SCARCITY people have to make___________________________ They make choices about what goods and services they will produce. This is called ________________________________ Because people SPECIALIZE they have to get the goods and services they do not produce through ___________________ which makes people more ­­­­­­­­­­­­­­_______________________________________________

What Happens When People Specialize? People use _________________________ to produce ___________________ and ______________________ BUT Resources are ____________________ AND Human wants are ____________________Which creates ________________________ because of SCARCITY people have to make___________________________ They make choices about what goods and services they will produce. This is called ________________________________ Because people SPECIALIZE they have to get the goods and services they do not produce through ___________________ which makes people more ­­­­­­­­­­­­­­_______________________________________________ RESOURCES GOODSSERVICES LIMITED UNLIMITEDSCARCITY SPECIALIZATION CHOICES TRADE INTERDEPENDENT

interdependence when people are dependent on other people in order to get the things they do not produce Example: When people specialize they become more interdependent.

Pancakes, Pancakes! By: Eric Carle

JackRooster MotherDonkey WheatSickle FlourMiller MillWater WaterwheelMillstone BagEgg Hen Cow

Pail Milk Butter ChurnFire CreamButter WoodStrawberry CellarBowl CupLadle Frying PanPlate ForkAx TreesWoodshed Hen HouseStool

Do you have a human, natural, or capital resource?

A web will be made which demonstrates how Jack was dependent upon or needed all the resources for his pancakes.

interdependence when people are dependent on other people in order to get the things they do not produce Example: When people specialize they become more interdependent.

How are you dependent on other people to meet your needs or wants.  In order to have flour, we go to the grocery store and buy it.  In order to do that, we need or are dependent on farmers to grow the wheat, trucks and drivers to take the wheat from the farm to a factory where workers turn it into flour.  Flour needs to be placed into packages, and drivers take the packages of flour to warehouses in trucks.  Workers load trucks to take the flour from the warehouses to the stores where clerks place the flour on shelves in stores.  People then can go to the store and buy the flour.

What did the folder game teach you about Michigan and specialization? The game demonstrated how different areas of Michigan specialize in different kinds of products.

Which region of Michigan produces oranges?  Oranges don’t grow anywhere in Michigan.  The oranges need a warm climate to grow well.  Oranges grow well in states like Florida where the climate is much warmer.  How are we able to buy oranges in Michigan when they are grown in Florida.  Oranges are available in Michigan through trade with states that specialize in oranges.  Apples grown in Michigan are sold in states that do not grow them too

Can you recall any examples from the book, Pancakes, Pancakes! of people specializing? The miller makes flour, Jack’s mom made strawberry preserves.

States Specialize! Following Directions Activity 1. Using the United States Map shade in the following state on your outline map: MichiganCaliforniaIdahoFloridaKansas 2. Cut out the agricultural products on this sheet. 3. Glue the cherries on Michigan 4. Glue the strawberries on California 5. Glue the potatoes on Idaho 6. Glue the oranges on Florida. 7. Glue the wheat on Kansas 8. Draw an arrow between each of the four states and Michigan.

 Follow the directions on the Activity sheet carefully in order to create a map illustrating trade between states.  If Florida only supplies oranges to Michigan. The map arrows created only show one trade between the 2 states; it is a simple view of interdependence and specialization.  In reality, Florida trades oranges to every state in the United States.  If we had to show all of these trades, the map would end up looking much like the web they created for the Pancakes, Pancakes! activity.

Do you find anything unusual about the box? The unusual writing on the box and explain that this writing represents Chinese writing. Why would a box of Kellogg’s Cornflakes have Chinese writing? The box illustrates how Michigan trades not only with other states but with other countries as well.

 China is quickly becoming an important trading partner of Michigan but it is not the country with which Michigan trades the most.  Predict which country is Michigan’s leading trading partner.  Canada is Michigan’s leading trading partner.  How does proximity affects trade?  If Canada is Michigan’s number one trade partner because it is our closest neighbor, what country do you think is Michigan’s number two trade partner?  Mexico is the country closest to Michigan after Canada and that Mexico is Michigan’s second leading trading partner.

Your task: Go on a search at home for products from other countries and record their findings on the chart. Products produced in many different countries can be found in Michigan.

Looking for Imports PRODUCTWHERE DID IT COME FROM?

Looking for Imports PRODUCTWHERE DID IT COME FROM?

economic activities different ways people use resources and produce goods and services. Example: Farming and mining are economic activities.

export a good that people in one place send out to people in another place when they trade Example: Cars are an important Michigan export.

import a good that people in one place bring in from another place when they trade Example: Bananas are a Michigan import.