Your SlideShare is downloading. ×
0
International Trade
International Trade
International Trade
International Trade
International Trade
International Trade
International Trade
International Trade
International Trade
International Trade
International Trade
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

International Trade

580

Published on

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
580
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
104
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Trade & Specialization
  • 2. Question of the Day • There are two presidents buried at Arlington National Cemetary. One is John F. Kennedy. Who is the other one? • One of the first presidents in the 20th century. • William Howard Taft
  • 3. Activity Rules • Inside voices. • No “forced” trades. (Don’t steal from each other) • You must vote every single round. • 3 minutes per trading session (I may shorten that if everyone appears to have finished)
  • 4. • How many people made trades? • Which items were most popular? Least popular? Why? • Did anyone trade more than once? Why? Did anyone not trade? • How might we explain the satisfaction points on the board? • Was everyone happy with their trades? • If we were to observe 20 people buying groceries, what might we conclude about their gains and losses? Their wealth?
  • 5. Trade Notes • Imports: Goods or services that an individual (or country) trades for. • Exports: Goods or services that an individual (or country) trades away. • What is the relationship between exports and imports?
  • 6. Absolute vs. Comparative Advantage • Absolute advantage: When one nation can produce an item with fewer resources than another nation can. • Better technology, better production processes etc. • Comparative advantage: The ability to produce an item at a lower opportunity cost. • Countries or individuals will export (trade away) items they have a comparative advantage in producing. Why?
  • 7. Barriers to Trade • Quota • Tariff • Export Subsidy • Why might a country put up barriers to trade? • What is the difference between a “quota” and a “tariff?”
  • 8. The World Trade Organization
  • 9. North American Free Trade Agreement • Canada, United States, & Mexico • Reduces tariffs and other barriers of trade between these countries. • Controversial • Why?
  • 10. Today’s Take-Away • Free-trade, at least among individuals, makes everyone better off. • The WTO and NAFTA are organizations that promote free-trade but are very controversial. • We will discuss these more in-depth when we talk about current economic issues next week. • Countries and individuals trade what they are good at making for things they are not (comparative advantage)

×