Unit_7notes.pptx - Unit­7 ­ • International Trade • Do what you do best trade for the rest • Do now begin working on Unit 7 current event

Unit_7notes.pptx - Unit­7 ­ • International Trade •...

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Unit 7 International Trade Do what you do best, trade for the rest! Do now begin working on Unit 7 current event
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Nations trade because they believe that the products they receive are worth more than the products they give up. Trade and specialization lead to economic growth for individuals, regions, and nations Reasons to Trade Special resources (you need something you don’t have or you have something someone else needs) 2. Political or diplomatic relations –trade agreements, embargos, etc 3. Economic advantage Absolute Advantage – the ability to produce a good at the lowest possible cost. Comparative Advantage –the ability to produce a good at a lower opportunity cost
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Specialization- The ability to produce a good or service more efficiently with the given resources Texas - Oil and cattle Idaho- Potatoes Virginia- Tobacco CA- Movies Michigan - Auto Florida - Citrus Georgia – Soybeans/Peanuts New York - Apples
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Bean Belt _(top_20_coffee_producers_2011).svg
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Balance of trade Exports - the goods and services that a nations produce and sells to another nation Imports - the good or services that a nation buys from other countries Trade deficit - whenever the value of the products a country imports exceeds the value of the products it exports Trade surplus - whenever the value of the products a country exports exceeds the value of the products it imports
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A balance of trade surplus is most favorable to domestic producers responsible for the exports. However, this is also likely to be unfavorable to domestic consumers of the exports who pay higher prices. Alternatively, a balance of trade deficit is most unfavorable to domestic producers in competition with the imports, but it can also be favorable to domestic consumers of the exports who pay lower prices ....
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Balance of payments 2016 : U.S. trade in goods with World, Seasonally Adjusted NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise specified. Details may not equal totals due to rounding .
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  • Fall '16
  • Mary Kosuth

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