1. How do economic factors influence Europe?
Essential Question
How do economic factors influence Europe?
Instructional Approach(s): The teacher should introduce the essential question for the lesson.

2. Standards
SS6E6a. Compare and contrast different types of trade barriers, such as tariffs, quotas, and embargoes.
SS6E6b. Explain why international trade requires a system for exchanging currencies between nations.
SS6E7a. Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP).
Instructional Approach(s): The teacher should introduce the standards that align to the essential question.

3. Standards
SS6E7b. Explain the relationship between investment in capital (factories, machinery, and technology) and gross domestic product (GDP).
SS6E7c. Explain the role of natural resources in a country’s economy.
SS6E7d. Describe the role of entrepreneurship.
SS6G11c. Evaluate how the literacy rate affects the standard of living in Europe.
Instructional Approach(s): The teacher should introduce the standards that align to the essential question.

4. Trade
Instructional Approach(s): Transition slide to first concept

5. Because every country does not use the same type of money, international trade requires a system for exchanging currencies between nations.
Instructional Approach(s): The teacher should present the information on the slide.

6. The European Union simplified currency exchange when it established the euro as the common currency for its member nations.
Instructional Approach(s): The teacher should present the information on the slide while the students summarize the important information on their graphic organizer.
This one common currency has made trade and travel much easier within Europe.

7. Trade Barriers
Countries sometimes set up trade barriers to restrict trade because they want to sell and produce their own goods
Tariff: a tax placed on imported goods
Quota: a restriction on the amount of a good that can be imported
Embargo: trade is forbidden with another country
Instructional Approach(s): The teacher should review the concept of trade barriers with the students.

8. TRADE BARRIERS
Tariffs: higher price on imports = lower demand on imports = higher demand on domestic goods
Instructional Approach(s): The teacher should present the information on the slide.

9. The European Union (EU) was primarily established to set up free trade among countries in Europe.
Products produced in Europe can now move freely, without tariffs, to other EU member nations. This free trade leads to huge cost savings for European consumers and businesses.
Instructional Approach(s): The teacher should present the information on the slide. Students do not need to write down the information yet. A summary slide is provided at the end to summarize trade barriers in Europe.

10. TRADE BARRIERS
Quotas: “supply shortage” = higher price on imports = higher demand on domestic goods
Instructional Approach(s): The teacher should present the information on the slide.

11. In order to protect its members, the EU sometimes establishes quotas on trade with other nations and within the EU.
Examples:
The EU placed quotas on clothing imports from China when EU members with strong textile industries complained about cheap import prices.
The EU strictly limits the amount of fish a boat can bring to port in order to give EU countries equal fishing advantage.
Instructional Approach(s): The teacher should present the information on the slide. Students do not need to write down the information yet. A summary slide is provided at the end to summarize trade barriers in Europe.

12. Turn to an elbow partner to discuss 1-2 benefits of being a European Union member nation and a possible disadvantage to being a European Union member nation (in terms of trade).
Instructional Approach(s): Have students turn to a partner and discuss the question on the slide. Partners can be determined by the students or the teacher can provide more specific directions such as turn to the person directly in front/behind you or to the right/left of you, etc. It may be necessary to have a group of three if you have an uneven number of students. Do not allow more than 30 seconds to 1 minute of discussion time. The teacher should be walking around listening and redirecting discussions as needed. The teacher can briefly discuss student responses. Possible Answers: Benefit: common currency and free market trade without tariffs. Possible disadvantage: have to stick to quotas on certain products or resources so that another EU member nation is not at a disadvantage.

13. Embargoes: NO trade at all!
TRADE BARRIERS
Embargoes: NO trade at all!
Instructional Approach(s): The teacher should present the information on the slide.

14. The EU will embargo imports from foreign countries if that country doesn’t follow specific quota rules.
Embargoes are sometimes put in place for safety reasons (for example, an embargo against African fish products due to unsanitary water conditions).
The EU may also embargo imports from countries for political reasons (for example, an embargo against a country that violates its citizens’ human rights).
Instructional Approach(s): The teacher should present the information on the slide. Students do not need to write down the information yet. The next slide summarizes trade barriers in Europe for students to record on their graphic organizer.

15. In Short…
The EU has eliminated tariffs to increase free trade among its member nations.
The EU uses quotas to protect its member nations from other countries and each other.
Instructional Approach(s): The teacher should present the information on the slide while the students record the information on their graphic organizer.
The EU imposes embargoes to protect its member nations and punish other countries for political reasons.