Notes on AKS 50 and 51

1. Notes on AKS 50 and 51

2. Describe how Georgians have engaged in trade in different historical time periods. • Trade is the act of buying and selling goods. • When nations agree to trade with each other without charging tariffs (taxes), the act is called free trade. • Free trade makes cheap foreign goods available to consumers. • It also allows industries to use their resources for production and import what they cannot produce cheaply. • Trade makes a much wider variety of goods available to people.

3. Trade History of Georgia • Trade first was present in Georgia when the Native Americans bartered with each other. • Europeans brought international trade to Georgia by trading for timber, animal pelts, and plant products to bring back to Europe. • Large numbers of African slaves were traded for cotton, rice, and tobacco by way of Savannah, GA • In the early 1800s, cotton and tobacco became the two major exports in Georgia. These were traded for manufactured goods because we had little industry in the South.

4. Trade History of Georgia • The textile industry developed at the same time as cotton industry grew. • After the Civil War, the International Cotton Exposition was held to promote industry in Georgia. • Cotton was king until the boll weevil in 1915

5. Modern Trade • Imports (goods we receive from other countries) • Passenger vehicles • Refined cooper • Medicine • Oil • Clothing • Georgia imports more coal than any other state! • Exports (goods we send to other countries) • Transportation Equipment (vehicles, aircraft, and accessories) • Computer and electronic products • Chemicals

6. Modern Trade • Top 3 export partners with Georgia: • 1. Canada • 2. China • 3. Mexico • Top 3 import partners with Georgia: • 1. China • 2. Germany • 3. Mexico • Georgia is the #1 producer of pecans and poultry (chicken) in the world! • Atlanta is one of the most important trade centers in the United States. • It is recognized as the business capital of the Southeast

7. Explain how the 4 transportation systems contribute to Georgia’s role in world trade today • Our two deep-water ports (Savannah and Brunswick) allow us to transport large amounts of crops and other goods to be shipped all around the world • Hartsfield-Jackson International Airport connects Georgia to the rest of the world. This includes transporting people and goods/services across the world. • Extensive Interstate highways allow goods to be transported quickly to markets. This includes transporting goods to the airports and ports that connect with the rest of the world for trade. • Railroads link our state to national markets and allow access to airports and ports which connect us world-wide.

8. 51 A • Expenses are the COSTS for a business to produce goods or services. The money a business receives from its customers (REVENUE) is used to pay its expenses. Remaining money is called a profit. (Revenue-Costs=Profit!) • Profit is the main incentive, or reason, for starting a business. Entrepreneurs look for new businesses and ways to make a profit. • An entrepreneur is a person who takes the risk to start up a new business. • They are the driving force to expanding and developing our economy.

9. Entrepreneurs • They are the risk-takers that invest money in a business or idea, but do not know if it will be profitable or not. • Entrepreneurs and their businesses help expand Georgia’s economy • Coca-Cola, Delta Airlines, Georgia-Pacific, and The Home Depot are examples of Georgia businesses that were started by entrepreneurs.

10. Coca-Cola • The Coca-Cola company was started in the 1880s by a Georgian entrepreneur named John Smith Pemberton. • Pemberton was a pharmacist and he created the cola formula and sold it as a health tonic. • The Coca-Cola Company makes many beverages, but is best known for its namesake Coca-Cola. • Coke is one of the most familiar products in the world. (1 in 6 people around the world use a Coke product every day!)

11. Delta Air Lines • Delta is one of the largest airlines in the country • The company was started in the 1920s by an entrepreneur named Collett E. Woolman. • Woolman worked to expand Delta to offer passenger and mail services. • He started with 3 planes and flew passengers between Texas and Mississippi. Today, Delta flies all over the world. • The U.S. Government began controlling the airline industry in the 1930s. They set ticket prices, flight routes, and schedules. • This government control helped Delta to compete and become successful. • Delta’s hub is in Atlanta

12. Georgia-Pacific • Georgia-Pacific is a paper company based in Atlanta. • It is one of the top producers of tissue, pulp, paper, packaging, and building goods. • The company was started by an entrepreneur named Owen R. Cheatham. He started the company in 1927 as a small lumber mill. • He took the risk and expanded his mill into a larger business and it continued to grow. • This company continues to be successful and produce a wide assortment of goods.

13. The Home Depot • The Home Depot is the world’s largest chain of improvement stores. • It was started in 1978 by entrepreneurs Bernie Marcus and Arthur Blank. • Before The Home Depot opened, hardware stores were specialized. Marcus and Blank wanted their stores to sell everything under one roof that someone might need for a project. • Operating on a large scale allowed prices to be low and the store employees were able to be experts in home improvement. • The Home Depot changed the way that home improvement stores are operated.