Warm-up1. Complete the chart handed out on the

last lesson and glue it on your warm-up page.

2. Once you are finished begin reviewing for the vocab quiz

TAXES INCREASE

Money available for private and business spending

(increase/decreases)

TAXES DECREASE

Money available for private and business spending

(increases/decreases)

GOVERNMENT BORROWING ( increases/decreases)

Money available for consumers and businesses

DECREASES

GOVERNMENT BORROWING

(increases/decreases)

Money available for consumers and businesses

INCREASES

GOVERNMENT SPENDING INCREASES

Demand, employment and production

(increases/decreases) causing (higher/lower) taxes

GOVERNMENT SPENDING (increases/decreases)

Demand, employment and production decreases

causing (higher/lower) taxes

After the Quiz1. Get the Global Economy worksheet and

complete the vocabulary and textbook reading exercise.

2. Get the Study Guide for the test next class. Put it on page 152.

Independently-no partners

A GLOBAL ECONOMY

PREVIEW

Look at the tag on the item of your clothing. Where was it made?

Vocabulary

•Worldwide markets in which the buying and selling of goods and services by all nations takes place

Global Economy

•Goods purchases from another country

Imports

•Introduction of a new idea, method or device

Innovation

•Limit on the amount of foreign goods imported into a country

Quota

•To sell goods to another country

Export

•Policy of reduced trade barriers

Free trade

•Tax on imported goods

Tariff

•When people, businesses, regions and nations concentrate on goods and services they can produce better than anyone else

Specialization

Fill-in1.

International trade is one of the major forces in the world today. Because of __________, Americans can eat fruit grown in Central and South America during winter. Through trade, American computers are sold in Africa and Asia. In a recent year, about ______ of all the goods produced in the United States were_______________ or sold to other countries. A slightly larger amounts of ______ were _______________, or purchased from _______________. These purchases give Americans products they might not otherwise be able to __________.

The basic problem in _________________, you recall, is_____________.People do not have enough _________________ to meets all their ___________and _______________. The same is true of _________________. ___________ is one way nations solve this problem of __________________.

trade

10%exported

goods imported

abroad

enjoy

economics

scarcity resources

wants needsnations Trade

scarcity

What is a Global Economy?

A worldwide market in which the buying and selling of goods by all nations takes place.

Why do Virginia and the US trade with other nations?

1. To obtain goods and services they cannot produce themselves or cannot produce efficiently themselves. (import)

Can you think of other examples?

2. To buy goods and services at a lower cost or a lower opportunity cost.

3. To sell goods or services to other countries (export)

4. To create jobs

Why do Virginia and the US specialize in the production of certain goods and services?

To promote efficiency and growth of the economy

Examples- what do you think of when I say -

Idaho? Wisconsin? Florida? Georgia? Virginia?

What is the impact of technological innovations on world trade?

1. Innovations in technology contribute to the global flow of information, capital, goods, and servicesExamples- Internet

2. The use of such technology also lowers the cost of production

U.S. Trade Partners The top ten trading countries with whom the United States trades include, in order of amount of trade, Canada, Mexico, Japan, China, Federal Republic of Germany, United Kingdom, Republic of Korea, France, Taiwan, and Italy. These countries make up about 71% of U.S. imports and about 65% of U.S. exports.

How much will your money buy in other countries?

http://www.economist.com/blogs/graphicdetail/2012/01/daily-chart-3

What are some barriers to free trade?

1. Free trade is the policy of reduced trade barriers.

2. Limits on free trade can be- tariffs- tax on imported goods Quotas- limit on the amount of

goods imported

Reading Activity

After you listen to the story “An Orange in January”, explain how the orange represents a global economy.

Can getting involved in a global economy help your country prosper?

Decide after watching the following presentation on Dubai.

Homework

Study for the test