1 / 12

Global Economics

Global Economics. This lesson made possible with the help of investopedia.com. Objectives. Review economic systems. Introduce key economic terms related to globalization. Warm Up & Review. What is economy? Way in which we manage resources to meet needs What are resources?

clint
Download Presentation

Global Economics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Global Economics This lesson made possible with the help of investopedia.com

  2. Objectives • Review economic systems. • Introduce key economic terms related to globalization.

  3. Warm Up & Review • What is economy? • Way in which we manage resources to meet needs • What are resources? • Human: time, $, skill • Country: natural resources, capital, labor force and technology • Limited resources = Scarcity

  4. Basic Economic Systems • 3 Basic Questions? • What to produce? • How to produce? • For whom to produce? • 3 Systems? • Market • Free choice, competition • Command • Govt decides, controls • Traditional • Cultural needs, subsistence • Economics • Study of decision-making & resource allocation. • Help nations & ppl make informed decisions

  5. The Law of Supply & Demand • Supply • The amt of a certain good or service producers are willing to supply when receiving a certain price • Law of Supply: The higher the price, the higher the quantity produced • Demand • How much (quantity) of a product or service people are willing to buy at a certain price • Law of Demand: The higher the price, the less demanded

  6. What’s This Mean? • Desire equilibrium: At the given price, suppliers sell all the goods they’ve produced & consumers get all the goods they’re demanding. • Too much supply, not enough demand = prices drop • Too much demand & not enough supply = prices rise • “Market fluctuations”

  7. Global Economy • Goal is effective resource mgmt for most efficient production • Weigh opportunity cost • Value of alternative that must be forgone to pursue certain action • Specialization & Comparative Advantage • Nation makes certain products at lower cost (higher quality) than others

  8. Globalization Review • What is globalization? • Growing integration of the world’s economies and societies. • Open country to free trade • Open currency markets • Privatize business

  9. Global Impact • As global economy becomes more interdependent • Dvpt depends on wise use of globally scarce resources • Decisions in one location affect all others

  10. Activity • Illustrated Global Economic Terms • Match up the word from the list of key terms provided with the image that represents its concept.

  11. Closure • What factors drive global economic decision making? • Resource Scarcity • Supply & Demand • Opportunity Cost • Comparative Advantage

  12. Homework • Choices Reading – International Trade: Competition & Cooperation in a Globalized World • Available in classroom

More Related