Where in the World?

1
Where in the World?

• Where were these products made?

2
Pick from the following countries

• France
• Finland
• Germany
• Great Britain
• Japan
• Netherlands
• South Korea
• Sweden
• Switzerland
• United States

3
Switzerland
Netherlands
Great Britain/Netherlands
U.S.
U.S
Japan
Japan
Switzerland (owned by Nestle)
U.S.
U.S.
U.S.
France
Finland
1. Nestle
2. Shell
3. Lipton
4. Baskin Robbins
5. Burger King
6. Firestone
7. Fuji Film Cameras
8. Friskies
9. Nike
10. Starbucks
11. Levis
12. Michelin Tires
13. Nokia
4
14. LOreal
15. Volvo
16. Sony
17. General Electric
18. Perrier Water
19. TV Guide
20. CBS Television
21. Vaseline
22. Bayer Aspirin
23. Gatorade
24. Adidas
25. Alka Seltzer
26. Hyundai
France
Sweden
Japan
U.S.
France
U.S.
U.S.
Great Britain/Netherlands
Germany
U.S. (Pepsi)
Germany
Germany
South Korea
5
Learning Goals

• Today you should be able to . . .
• Explain why countries specialize and trade.
• Because . . . this will you understand what how
  people get the resources they need and want.

6
Why does this matter?

• You wouldnt have these products if it wasnt for
  . . .
• specialization
• trade

7
Specialization

• When countries only make certain products
• Caused by scarcity of resources
• Countries produce a smaller range of goods and
  services than they consume
• leads to trade
• increases interdependence

8
Trade

• Specialization leads to free trade
  interdependence
• free trade - international trade free of
  government control and trade barriers
• interdependence - when countries rely on each
  other for resources, goods, or services

9
Specialization Trade Demo
Country A specializes in rectangular cards
Country B specializes in triangular cards

• Why?
• Because each countrys resources is best suited
  to those products

10
Scarcity of Resources

• COUNTRY A

• COUNTRY B

• Rectangular cards
• Plain paper
• Scissors
• Markers
• Pencils
• Paper clips

• Triangle cards
• Plain paper
• Scissors
• Markers
• Hole punchers
• Rulers
• Ribbon

11
Round 1

• 5 minutes to produce as many HIGH quality
  products as possible

12

• Count the number of products you produced.
• Discard poorly made products.

13
Production with Specialization 1st
Output of Rectangular cards Output of Triangular Cards
Country A 0
Country B 0
Total World Output
14
Production with Specialization 2nd
Output of Rectangular cards Output of Triangular Cards
Country A 0
Country B 0
Total World Output
15
Production with Specialization 5th
Output of Rectangular cards Output of Triangular Cards
Country A 0
Country B 0
Total World Output
16
Production with Specialization 6th
Output of Rectangular cards Output of Triangular Cards
Country A 0
Country B 0
Total World Output
17
Specialization

• Each country specialized in producing of one good
  over another because of
• available resources (scarcity).

18
Round 1 Reflection Questions

• ONLY Round 1 questions 1-4

19
Round 1 Reflection

1. A) What do you think might happen to the quality
   of each countrys products if it produced for
   another round? B) Why?
2. A) What do you think might happen to the number
   of products that are produced if each country
   produced for another round? B) Why?
3. What might each country do if it wanted to both
   rectangular and triangular cards?
4. If each country _____________ one quarter (1/4,
   25) of its cards, how many cards of each type
   will Country A have? Country B?

20
Number of Cards after Trade 1ST
of Rectangular cards of Triangular cards
Country A
Country B
21
Number of Cards after Trade 2ND
of Rectangular cards of Triangular cards
Country A
Country B
22
Number of Cards after Trade 5TH
of Rectangular cards of Triangular cards
Country A
Country B
23
Number of Cards after Trade 6TH
of Rectangular cards of Triangular cards
Country A
Country B
24
Round 2

• 6 minutes to produce as many HIGH quality
  products as possible
• Both countries must produce BOTH goods
• NO trading allowed

25
Production without Specialization 1ST
Output of Rectangular cards Output of Triangular cards
Country A
Country B
26
Production without Specialization 2ND
Output of Rectangular cards Output of Triangular cards
Country A
Country B
27
Production without Specialization 5TH
Output of Rectangular cards Output of Triangular cards
Country A
Country B
28
Production without Specialization 6TH
Output of Rectangular cards Output of Triangular cards
Country A
Country B
29
Round 2 Reflection Questions
30
Summary Questions
31

• trade barrier - any action a government uses to
  control trade between countries
• tariff - an extra price or tax added onto
  imported products
• quota - a limit on how much of something may be
  imported
• embargo - when a country won't trade with another
  country at all

32
Trade Barriers

• Which is Which?

33

• Scarcity
• Specialization
• Interdependence
• Trade (voluntary, international)
• Currency
• Exchange rate

34
Why do people/nations trade?

• They want or need goods and services, and
  therefore expect to benefit from trade
• Today countries are more dependent
  (interdependent) due to specialization
• Specialization people or nations produce few
  special goods and services and trade those goods
  and services for other things they want