1. Specialization & Interdependence Ms. Ramos Alta Loma High School

2. How does specialization lead to Economic Interdependence? Ms. Ramos

3. How did people live 200 years ago? Ms. Ramos

4. They grew their own food, built their house, made their own tools & clothing, and performed many other tasks themselves. Ms. Ramos

5. Specialization Improves Productivity Smith wrote about advantages of specialization –Division of labor As productivity increases, more G&S are available & standard of living increases Ms. Ramos

6. Need lg society to sustain Ms. Ramos

7. Specialization Encourages Trade Dont produce everything- need to trade We trade with others because it frees up time and resources to do things that we are better at - Charles Wheelan Are we able to be self sufficient today? Ms. Ramos

8. Trade is a VOLUNTARY EXCHANGE Traditional economies- Barter Market economies- money Ms. Ramos

9. Money is … –Useful when value generally accepted –Easy to carry –Convenient for transactions Ms. Ramos

10. Trade creates Economic Interdependence depend on others/ other countries Ms. Ramos

11. http://www.shutterstock.com/pic-23004469/stock-photo-a-typical-american-hearty-breakfast.html dullmensclub.com

12. http://www.shutterstock.com/pic-23004469/stock-photo-a-typical-american-hearty-breakfast.html dullmensclub.com Columbian Coffee Florida Orange Juice Idaho Potatoes Iowa Eggs Nebraska Pork Kansas Wheat

13. Smith & the Founders believed trade & econ interdependence were key to nations growth –Prob when states est trade barriers w/one another –Difficult to develop national economy Ms. Ramos

14. madmen.wikia.com peoplequiz.com Ms. Ramos

15. Not to worry!!!…. Commerce Clause Art. I, sec. 8 to the rescue Congress shall have the Power…To regulate Commerce with foreign Nations, and among the several states Ms. Ramos