Global Trade

​Global Trade

​Objectives

1. Vocabulary terms

2. Describe reasons that global trade takes place.

3. List gains from global trade.

4. Identify ways in which the U.S. economy is affected by global trade.

5. Describe types of trade barriers.

6. Explain techniques used by governments to improve global trade relations.

Imports are goods or services that a country buys from other countries because it doesn't produce them domestically. Just like how a ship brings goods from other countries into a harbor, imports are brought into a country from abroad.

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​Imports

​Exports are goods or services that a country sells to other countries because it produces them and they are in demand elsewhere. Just like how a cargo plane takes off with goods to deliver them to other countries, exports leave a country to be sold internationally.

​Exports

​Global trade refers to the exchange of goods and services between countries worldwide. It allows countries to obtain products they don't produce and sell those they do on the international market. The arrows on the map represent trade routes connecting countries all around the world.

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Global Trade

​Absolute advantage means a country can produce a good or service more efficiently or with fewer resources than another country. In the picture, the worker using the machine has an absolute advantage because they can dig holes faster and with less effort compared to the worker using a shovel.

Comparative advantage means a country can produce a good or service at a lower opportunity cost compared to another country. This means they give up less of other goods or services when producing the one in question. In the picture, one person has a comparative advantage in oranges because they give up fewer apples to produce them compared to the other person.

Multiple Choice

Tom's country has advanced technology and skilled workers that allow them to produce cars more efficiently than any other country. As a result, they export cars to many countries around the world.

Question: What concept does Tom's country have in producing cars?

• Absolute advantage
• Specialization
• Opportunity cost
• Comparative advantage

Multiple Choice

Scenario: Sarah and James are both skilled in baking cookies and cakes. However, Sarah can bake 12 cookies in the time it takes James to bake 10 cookies. Meanwhile, James can bake a cake in the time it takes Sarah to bake 12 cookies. Question: Which concept is illustrated in Sarah and James's baking skills?

• Exports

• Comparative Advantage

• Absolute Advantage

• Imports

Multiple Choice

Scenario: Maria is studying geography, and she learns about how different countries exchange goods and services with each other. She sees how products from all over the world are available in her local supermarket.

Question: What concept is Maria learning about?

• Foreign Exchange
• Trade Deficit
• Import Tariffs
• Global Trade

Multiple Choice

Carlos's country is known for producing high-quality coffee beans. Carlos's family owns a coffee plantation, and they sell their coffee beans to cafes and markets in other countries.

Question: What concept is demonstrated in Carlos's family business?

• Imports
• Specialization
• Comparative advantage

• Exports

Multiple Choice

Emily's country doesn't produce bananas, but she loves eating them. She buys bananas from a neighboring country to satisfy her cravings.

Question: What concept is illustrated in Emily's situation?

• Tariffs
• Imports
• Globalization
• Exports

Multiple Choice

In a small town, there are two coffee shops, Coffee Haven and Brew Bliss. Both coffee shops employ skilled baristas who can brew delicious coffee drinks. However, at Coffee Haven, each barista can brew 20 cups of coffee in an hour, while at Brew Bliss, each barista can only brew 15 cups of coffee in the same amount of time.

Question: What concept is illustrated in Coffee Haven's and Brew Bliss's coffee brewing capacity?

• C) Absolute Advantage

• D) Specialization
• B) Tariffs
• A) Exports

​Reasons Why Countries Trade

1. Specialization and Efficiency: Countries trade because they can produce certain goods or services more efficiently than others due to factors like natural resources, technology, or skilled labor. By focusing on what they do best, countries can produce more and better goods, benefiting everyone.

​Reasons Why Countries Trade

1. Access to Resources: Trade allows countries to get resources they don't have or can't produce enough of themselves. For example, a country without oil can trade with others to get it, ensuring they have what they need to keep their economy running smoothly.

Reasons Why Countries Trade

1. More Choices for Consumers: Trade means access to a wider variety of products at different prices. This gives consumers more options to choose from and allows them to buy things they wouldn't have otherwise.

Reasons Why Countries Trade

1. Growing Markets: Trade opens up new markets for businesses to sell their products. This means more sales, more profits, and more opportunities for businesses to expand and grow.

​Reasons Why Countries Trade

1. Learning from Others: Through trade, countries can learn from each other and share knowledge, technology, and ideas. This helps everyone improve and innovate, making products better and more efficient over time.

​Reasons Why Countries Trade

1. Reducing Risks: Trading with other countries spreads out risks. If something goes wrong in one market, like a bad harvest or a recession, a country can rely on trade with others to help make up for it.

Multiple Choice

1. Why do countries trade with each other? A) To compete with each other B) To produce goods more efficiently C) To keep resources for themselves D) To isolate themselves from the world

• To compete with each other

• To keep resources to themselves

• To produce goods more efficiently

• D)To isolate themselves from the world

Multiple Choice

1. What does trade allow countries to access?

• More disasters

• More taxes

• More resources

• More boards

Multiple Choice

1. How does trade benefit consumers?

• By increasing competition

• By limiting access to products

• By providing more choices

• By decreasing convenience

Multiple Choice

1. What does trade create for businesses?

• More regulations

• More costs

• More opportunities

• More barriers

Multiple Choice

1. What do countries learn from each other through trade?

• 1. How to share knowledge and technology

• How to avoid communication

• How to build walls

• How to stifle progress

​List gains from global trade.

1. More options to choose from

2. Foster better relationships

3. Better prices

4. More job opportunities

5. Cultural exchange

6. Economic growth

Multiple Choice

1. What does global trade provide us with? A) More restrictions B) More job opportunities C) More isolation D) More rules

• More job opportunities

• More regulations
• Less globalization
• Fewer job opportunities

Multiple Choice

1. Why do prices sometimes go down because of global trade? A) To increase profits for companies B) To limit choices for consumers C) Because companies can buy materials or make products in countries where it's cheaper D) Because companies want to raise prices

• To improve quality of products

• Because companies want to lower prices

• 1. Because companies can buy materials or make products in countries where it's cheaper

• To decrease costs for companies

Multiple Choice

1. What can trade do for job opportunities?

• Increase them
• Make them fluctuate
• Eliminate them
• Stagnate them

Multiple Choice

1. How can countries improve their own products through trade?

• By hoarding their ideas

• By remaining ignorant of global trends

• By isolating themselves from other countries

• By learning from other countries

Multiple Choice

1. What can trade help countries do with their economies? A) Make them smaller B) Make them grow C) Keep them the same D) Make them weaker

• Make them grow

• Make them smaller

• Keep them the same

• Make them weaker

Multiple Choice

1. What do we get to experience because of trade? A) More of the same B) New cultures and traditions C) More restrictions D) Fewer choices

• 1. More of the same

• 1. New cultures and traditions

• 1. More restrictions

• 1. Fewer choices

Multiple Choice

1. How can trade promote peace between countries?

• 1. By making countries more interconnected and interested in keeping things peaceful

• By promoting military alliances

• By reducing economic interdependence

• By increasing diplomatic relations