Specialization Redemption

Specialization Peer Work

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SS7E5 Explain how voluntary trade benefits buyers and sellers in Southwest Asia (Middle East).

Voluntary Trade

Voluntary trade is always beneficial to the parties engaged in it. If the trade was not beneficial to one of the parties, then that party would not agree to the trade and the trade would not occur.

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What is specialization?

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• when people or regions focus on making specific goods that are easiest for them to make.

• Example: in Georgia, our climate makes growing peaches or peanuts easier. Then, farmers invest in machines to make the process more efficient. (faster and cheaper)

​a. Explain how specialization encourages trade between countries.

Multiple Choice

What is specialization?

• when economies are special and they make more money than other countries.

• when an economy focuses on making a specific thing efficiently.

• when an economy refuses to pick a good or service to focus on.

• when a country invests in multiple goods and businesses to make more money.

Specialization and trade

How does specialization lead to more trading?

• First, when countries specialize in making a good, they make it for a cheaper price and more quickly. Then, they can use this good to trade for the things that they need that other countries specialize in.

• This saves them time and money because they do not have to try and make all of the goods they need in one country.

Subject | Subject

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Multiple Choice

How does specialization encourage trade between countries?

• Since countries are not focused on making a specific good, they can invest in many things and make all of their needed goods.

• Since countries are focused on efficiently making a specific good, they can spend more money on making all of the other goods they need.

• Since countries are focused on efficiently making a specific good, they can trade for their other needs instead of trying to make it all.

Next questions ask you to apply your knowledge

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Multiple Choice

In Japan, they specialize in making automobiles. In South Korea they specialize in making computer-chips that are used in cars, phones, and other machines. Would these two make good trading partners? Explain?

• No, because their countries specialize in different things.

• Yes, because they specialize in different things.

Multiple Choice

Which statement correctly explains the importance of specialization?

• Specialization allows countries to make what they are good at and trade for all of their other needs.

• Specialization allows countries to make what they are good and and use the profits to produce all of their other needed goods.

• Specialization is important because it enables countries to make and save more money.

Multiple Choice

If Saudi Arabia specializes in oil production and Iraq also specializes in oil production, do these specific specialties make them beneficial trading partners?

• Yes, because they can trade their oil products with one another that they both produce.

• No, because they both can produce enough oil to sell and to use in their own countries.

• No, because they produce different oil products.

• Yes, because they produce the same oil products.