1. Unit 7 - Trade Agenda: -Warm Up/Trade Activity -Voluntary Trade, Comparative & Advantage, Trade Deficit and Advantage -Vocabulary -Pass Back Tests

2. Stock Market Project Due Tuesday Does anyone not understand?

3. Trade and Property Rate the items in your bag on a scale of 1 to 5. 1 being you hate it, 5 being you love it. When I say go, you have about 5 minutes to trade the items in your bag if you want. When you’re done have a seat.

4. Vocabulary As we go through this unit, fill out the vocabulary sheet with the important words we learn from day to day. This will be due at the end of the unit.

5. Voluntary Trade EPF.9a When people trade voluntarily, that is, willingly and without coercion, both parties benefit. Voluntary exchange among people or organizations in different countries gives people a broader range of choices in buying goods and services and often lowers prices.

6. Absolute Advantage EPF.9b Absolute Advantage An individual, business, or country that can produce a certain good with fewer resources than other countries is said to have an absolute advantage.

7. Comparative Advantage EPF.9b Comparative Advantage An individual, business, or country that can produce a certain good at a lower opportunity cost than its trading partners is said to have a comparative advantage. *Comparative advantage is the primary motivating factor driving international trade.

8. Specialization EPF.9b Specialization occurs when an individual, business, or country focuses its resources on producing a few goods or services and expects to trade for other goods and services it wants. Total world production is greater when nations specialize in the production of those products that they can produce most efficiently.

9. Imports and Exports EPF.9c Imports are foreign goods and services that are purchased from sellers in other nations. Exports are domestic goods and services that are sold to buyers in other nations. When imports exceed exports, the result is a trade deficit. When exports exceed imports, the result is a trade surplus.

10. Trade Barriers and Organizations Agenda: -Trade Barriers -Trade Agreements and Organizations -Vocabulary -Channel One -Hockey?

11. Intro to Trade Barriers Examine the clothing you are wearing and other items you own; determine where these items were produced. (Most items have a "Made in _______" tag or label.) Generate a list on your paper: 1. How do you benefit from being able to buy goods made in other countries? 2. Would you favor a policy that would raise the price on T-shirts and reduce the amount available?

12. Trade Barriers EPF.9e Tariff – tax on imports Quota – a limit on the quantity of a good allowed into a country Embargo – a policy forbidding trade in a certain good or with a certain country. Negative aspect trade barriers: Trade Barriers reduce trade thus reducing competition for domestic producers and reducing choices for consumers

13. Trade Barriers EPF.9e Negative aspect of trade barriers *Trade barriers hurt consumers by raising prices of the protected good and hurt foreign producers of the good who wish to export to the United States.

14. Trade Barriers EPF.9e Positive aspect of trade barriers *Trade barriers help domestic producers of the protected good by reducing the competition for their good.

15. Trade Barriers EPF.9e Even though they usually impose more costs than benefits, there are several reasons why they are implemented: 1. Advocated by groups or people that expect to gain from them *i.e., cotton growers advocating for a tariff on Egyptian cotton 2. Political leaders implement policies that disperse costs over large groups of people and benefit small, politically powerful interest groups *i.e, auto workers union

16. Trade Barriers EPF.9e Because the costs of trade barriers are typically spread over a large number of people, each of whom pays only a little and may not recognize the cost, policies supporting trade barriers are often adopted through the political process. When imports are restricted by public policies, consumers pay higher prices, and job opportunities and profits in importing firms decrease.

17. Did you Know? One of the most popular soups in the late 1920’s: Peanut Butter Soup A year’s worth of sap from a full-grown sugar maple tree will make only one-third gallon of syrup Rats have been known to survive falls from 5 stories high. The city of San Juan was once known as Puerto Rico, and the island of Puerto Rico was once known as San Juan.

18. Trade Agreements and Organizations EPF.9f “Trade agreements” establish rules about trade that all parties agree to. These agreements have generally reduced the barriers to trade. The North American Free Trade Agreement (NAFTA) established a free-trade zone (Canada, Mexico, and the United States) with the intention of eliminating trade barriers, promoting fair competition, and increasing investment opportunities.

19. Trade Agreements and Organizations EPF.9f The World Trade Organization (WTO) administers trade agreements, handles disputes, and provides a venue for negotiating among its member nations. The European Union (EU) is a regional trade organization formed to promote trade among countries in Europe by reducing trade barriers and adopting a common currency, the euro.

20. Growing Economic Interdependence EPF.9g The economy of the United States depends on resources and markets around the world for the production and sale of goods and services. When other economies slow, they buy less from the United States, which slows the United States economy. When other economies expand, they buy more from the United States economy.