The Whole Picture - Global Economics

Have you ever heard the phrase “going global”? With the development of the Internet and telecommunications equipment, international trade has become much easier for businesses. International trade allows countries all over the world to benefit from goods and services provided by different nations. Every nation specializes in at least one area of production. Through specialization, countries become more efficient and cost effective in the things they produce. Then, nations all over the world can trade with each other to get the products that other countries produce better than they can.

For example, think about what you ate for breakfast this morning. Did you eat some type of fruit that was not grown in the U.S.? If you ate an orange, grapefruit, or tangerine, it probably came from Florida. Specialization and worldwide trade are connecting countries all over the world.

Essential Questions

• How do international trade, trade barriers, and trade agreements affect you, the United States, and other countries?
• How does comparative advantage benefit international trade?
• What are exchange rates and how is the dollar affected by them?