Chapter 15 International Trade and Economic Development
International Trade <ul><li>Exports – goods produced in a country and sold to residents in a foreign country </li></ul><ul...
Where our imports come from…
Trade Balance <ul><li>Balance of Trade – the difference between the value of a countries exports and the value of their im...
International Trade Lingo <ul><li>Absolute Advantage – the situation in which a country can produce more of a good than an...
Outsourcing <ul><li>Outsourcing – the term used to describe work done for a company by another company or by people other ...
Tariffs and Quotas <ul><li>Tariff – a tax on imports </li></ul><ul><li>Quota – legal limit on the amount of a good that ma...
Economic Development <ul><li>Developed Country – a country with a relatively high GDP </li></ul><ul><li>Less – Developed C...
Problems and Needs of the Developing World <ul><li>Obstacles to Economic Development: </li></ul><ul><ul><li>Rapid populati...
Upcoming SlideShare
Loading in...5
×

Chapter 15

327

Published on

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

No Downloads
Views
Total Views
327
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Chapter 15

  1. 1. Chapter 15 International Trade and Economic Development
  2. 2. International Trade <ul><li>Exports – goods produced in a country and sold to residents in a foreign country </li></ul><ul><li>US Export Partners: Canada 23.4%, Mexico 13.3%, Japan 6.1%, China 4.6%, UK 4.3% </li></ul><ul><li>Imports – goods produced in foreign countries and purchased in another country </li></ul>
  3. 3. Where our imports come from…
  4. 4. Trade Balance <ul><li>Balance of Trade – the difference between the value of a countries exports and the value of their imports </li></ul><ul><li>Balance of Trade = value of exports – value of imports </li></ul>
  5. 5. International Trade Lingo <ul><li>Absolute Advantage – the situation in which a country can produce more of a good than another country with the same quantity of resources </li></ul><ul><li>Specialize – To do only one thing. For example, when a country specializes in the production of a good, it produces only that good. </li></ul><ul><li>Comparative Advantage – The situation in which a country can produce a good at a lower cost than another country. </li></ul>
  6. 6. Outsourcing <ul><li>Outsourcing – the term used to describe work done for a company by another company or by people other than the original company’s employees </li></ul><ul><ul><li>Cost – jobs are lost </li></ul></ul><ul><ul><li>Benefits – cheaper consumer products </li></ul></ul><ul><ul><li>The costs are easier to see than the benefits </li></ul></ul>
  7. 7. Tariffs and Quotas <ul><li>Tariff – a tax on imports </li></ul><ul><li>Quota – legal limit on the amount of a good that may be imported </li></ul><ul><ul><li>Tariffs and quotas raise the price of imported goods to the U.S. consumer </li></ul></ul>
  8. 8. Economic Development <ul><li>Developed Country – a country with a relatively high GDP </li></ul><ul><li>Less – Developed Country – a country with a relatively low GDP </li></ul>
  9. 9. Problems and Needs of the Developing World <ul><li>Obstacles to Economic Development: </li></ul><ul><ul><li>Rapid population growth </li></ul></ul><ul><ul><li>Low savings rate – people are to poor to save money </li></ul></ul><ul><ul><li>Cultural differences may inhibit change </li></ul></ul><ul><ul><li>Political instability </li></ul></ul><ul><li>Factors that aid growth and development: </li></ul><ul><ul><li>Free trade </li></ul></ul><ul><ul><li>Foreign investment </li></ul></ul><ul><ul><li>Low government intervention in wage a price controls </li></ul></ul>

×