Trading Economics

1. Trade
Simulation

2. Clear your desks please…..some things to
consider…..
1. Trade moves goods from people who value them
less to people who value them more.
2. Trade allows us to specialize in the things we do
best.
3. Trade lowers per-unit costs by using mass
production methods and lower labor costs.

3. Trading Simulation
Rules
Goals/Rules
1. Improve your economic situation creating more
wealth for your country.
2. Trade must be voluntary.
3. You can trade all or any portion of your bag.

4. Let the Trading Begin…
After each round, you will rate your overall
satisfaction level with what you have in your
bag.
Round 1: you will be trading with your row only.

5. Round # 1
My satisfaction level after round # 1 is ___________.
1. The U.S. has a trade deficit resulting in a negative
trade balance (Japan and China).
2. The U.S. is the largest importer. China is the largest
exporter in the world.

6. Trading Partners
European Union- EU is largest single trading partner
with the United States.
25 Member
Nations

7. Round # 2
My satisfaction level after round # 2 is ___________.
Protectionism: Use of trade barriers to protect U.S.
goods from foreign competition.
Trade Barriers: (restrictions) limit free trade.
1. Import Quota - limit on the amount of a good that can
be imported
2. Tariff - Tax on imported goods.
3. Licensing fees/Patents
4. Buy American clauses.
* These trade barriers can
lead to a trade war = less
trade.

8. Round # 3
My satisfaction level after round # 3 is
___________.
1995 World Trade Organization (WTO) was
established to negotiate new trade agreements,
resolve trade disputes, and enforce trading
rules.

9. Quick-Write
Argue the following prompt:
Free trade benefits the poor…..