1 / 16

TOK Economics Lesson #11

TOK Economics Lesson #11. International Trade. Closed economy = C + I + G (Consumers + Investment + Government). Open economy = C + I + G + (X-M) Adds in Exports and Imports , also known as…. International Trade!. VIDEO TIME!. An oldie but a goodie (1951) –

nan
Download Presentation

TOK Economics Lesson #11

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. TOK Economics Lesson #11 International Trade

  2. Closed economy = C + I + G(Consumers + Investment + Government) Open economy = C + I + G+ (X-M) Adds in Exports and Imports, also known as…. International Trade!

  3. VIDEO TIME! • An oldie but a goodie (1951) – How Foreign Trade Works http://www.youtube.com/watch?v=-74YMKm2NE8

  4. Trade surplus vs. Trade deficit • Surplus: Exports>Imports, or Net exports what country does this??? • Deficit: Imports>Exports, or Net imports know any country that does this?

  5. Which is better? The good side of each: • Trade surplus = More money and jobs, since people are buying all your stuff • Trade deficit = More stuff at cheaper prices! The bad side of each: • Trade surplus = Less stuff for your own people; dependent on foreign buyers • Trade deficit = Jobs and money are going overseas; dependent on foreign producers

  6. Another video? • DVD Video Ch. 37: Trade

  7. How does specialization explain why international trade is good?(Hint: everybody wins, at least in theory!) • APIP 7: Hatfields and McCoys

  8. Why do we import things that we could produce here? • Comparative advantage • Quality • Price • Variety

  9. What’s wrong with the “buy American!” argument? • $180,000 a year – that’s what!

  10. Who wins from imposing tariffs? Who loses?

  11. Who wins from imposing quotas? Who loses?

  12. What did the Great Depressionteach us about using tariffs to protect jobs? Hint: It didn’t turn out too well…..

  13. What are examples of embargoes on imports and exports?

  14. How could industry subsidiesbe unfair to free traders?

  15. Is NAFTA a good thing or a bad thing? How about the WTO? • DVD: Street Meet: G20 Protest http://www.youtube.com/watch?v=Y1yaTY4Iqwk&feature=related

  16. That is all for today Thanks for your attention!

More Related