042710 econ trade and china 50m

Good Day!

DRAW A LINE SEPARATING TODAY & YESTERDAY1) Write: Date: 04/28/10, Topic: Trade and China2) On the next line, write “Opener #42” and then:

1) Plot your mood, reflect in 1 sent.2) Respond to the opener by writing at least 2 sentences about:Your opinions/thoughts OR/AND

Questions sparked by the clip OR/AND

Summary of the clip OR/AND

Other things going on in the news.Announcements: NoneIntro Music: Untitled

Agenda1) Introduction to World Trade2) China in the World Economy

End Goal, you will be able to…1) How does China impact the world economy?

Reminder1) No HW (Test on Monday)

Review3) Exchange Rate: How much of X money it takes

to get Y money (supply + demand)4) Strong Dollar: Other nations want more US $

(good for consumers, bad for US exports)5) Weak Dollar: Other nations want less US $,

others already have too many (bad for consumers, good for US exports)

6) Trade Deficit: More money going out than in

American wants a BMW (3e)

American exchanges $3 for 3e

American pays BMW 3e

American wants to buy 2nd car, but Eur. has surplus US $, it wants more US $ for each euro.

Americahas a trade deficit, BUTLets say as the US dollar gets weaker US buys less BMWs

With weakerUS dollar, Europeansbuys more Fords

Europe’s surplus of US dollars diminishes, which strengthens US dollar, which means US buys more

BMW again.

Americahas a trade deficit, BUTLets sayby not making cars in theUS, It made planes

American wants a ZuZu Pet

American exchanges $3 for 15 yuan

American pays Zuzu Pet

Chinalends US money by buying US Bonds

ChinaBuys US companies+ property

Review1) Weak Money: Takes less foreign

money to buy $1 US dollar. (weak demand)

2) Strong Money: Takes a lot more foreign money to buy $1 US dollar. (strong demand)

Notes #42a, Title: “Trade” 1) How to Weaken (lower price) the US Dollar:Lower demand or increase supply of US dollars.a) Have US buy more foreign products.b) Lower interest rates and lower reserve rates*c) Weaken US reputation, foreign store their

money is safer places2) How to Strengthen (increase price) the US

Dollar: Increase demand or decrease supply of US dollars.

a) Have foreign nations buy more US goods.b) Increase interest rates, makes foreign want to

hold their money in US banksc) Boost US reputation, makes them save $ here

Work #42a, Title “Dollar Scenarios”1) US has a trade deficit, US spends more abroad

than foreigners buying US goods, does this weaken or strengthen the US dollar?

2) Fed increases interest rates, so savings account interest rates go up, does this weaken or strengthen the US dollar?

3) Terrorist attacks against the US increases, does this weaken or strengthen the US dollar?

4) Fear of European economic instability, does this weaken or strengthen the US dollar?

Notes #42b, Title: “Trade” 1) Protectionism: Protecting domestic biza) Tariff: Tax on foreign importsb) Quota: Fix # of for. importsc) Voluntary Export Restraint: Have nation keep

back their exportsd) Regulatory: Pass laws that make it hard for for.

Importse) Subsidies: Gov gives tax dollars to US biz to

help against competition

2) Trade Wars: Retaliation to protectionism3) Free Trade: No or far less protectionism (EU)4) NAFTA: Agreement to have free trade between

US, Canada, and Mexico (Europe’s EU similar)5) World Trade Organization (WTO): International

org promoting free trade6) Creative Destruction: Trade will turn some ppl

who can’t adjust, but help whole nation overall

Work #42b, Title “Free Trade”

1) Read the two sides of the issue carefully, and write which side you support AND why.

5 Reading/Film Qs Come From These Work Sections

Work #42c, “National Security Debate”1) Read the 2 sides, choose 1 side, and write

which you choose and explain why.2) Then write down what your partner thinks

(include their name at the end).1 2 3 4 5

CON: Don’t protect US refueling jets, buy Euro1) Allowing for. products allows US biz to learn for. technology

2) If US more efficient, it can spend resources else where to be even stronger

PRO: Protect US refueling jets b/c of national sec1) Some products need to be made here, so they aren’t sabotaged

2) We need to know how to build in a war, in case we fight the for. supplier

Work #42d, “Infant Industry Debate”1) Read the 2 sides, choose 1 side, and write

which you choose and explain why.2) Then write down what your partner thinks

(include their name at the end).1 2 3 4 5

CON: Don’t protect LCD1) Protection makes biz less innovative and competitive

2) Some infants are never meant to live and should be fed to the vultures!

PRO: Protect US LCD Ind1) Other countries protect their industry, we need to give ours a boost

2) Once biz grow, they’ll be able to succeed on their own, thus the term infant.

Work #42e, “Food Subsidies Debate”1) Read the 2 sides, choose 1 side, and write

which you choose and explain why.2) Then write down what your partner thinks

(include their name at the end).1 2 3 4 5

CON: Don’t subsidize1) Makes those subsidizes biz lazy/less competitive

2) Subsidy transfer tax dollars from everyone to politically connected biz

PRO: Subsidize Struggling US Products1) Some US biz, it’s for the common good, we help keep them alive

2) Subsidy can make the product cheaper for shoppers

Work #42c, Title “Fair Debate”

• Read the GAP docs and suggest what should GAP do (include their name).

GAP Founders theFishers were SF“royalty”

Be prepared to present.

Work #42g, Title “Sweat Shop Debate”Ask your partner (include their name):1) If we require US biz to have labor standards

for goods made in the US, should we require US biz to have their imported products meet the same standard?

2) Is it wrong for businesses to look for the lowest cost supplies/suppliers?

3) Would customers really reward companies by still shopping there even if they raised their prices in order to cover ethical improvements?

Be prepared to present.

Notes #42c, Title: “China Notes” 1) China: 1.3 bil ppl, 4% unemp, $4.33 tril GDP, $3,267 per Capital, 9% Growth, 22% Gov Debt USA: 0.3 bil ppl, 10% unemp, $14.6 tril GDP,

$47,988 per Capita, 0% Growth, 94% Gov Debt

Notes #42c, Title: “China Notes” 2) China’s Upside:Large Reserves of MoneyRising Education SystemCapitalism Spirit

Notes #42c, Title: “China Notes” 3) China’s Downside:Wide Income Gap (billion poor)PollutionGovernment control stunts creativity

Work #42d, Title “China’s Economy”

1) Copy Source Title: CNBC

2…) Discuss questions on the board with a partner. Summarize your discussion (include their name at the end). Remember participation points are deducted if off task. 5 Reading/Film Qs Come From These Work Sections

Homework: 1) No Homework