Content

International Trade

In a previous topic, you learned that resources are not equally distributed around the world. As a result, many countries rely on trading resources internationally. This helps them survive and develop. There are two reasons a country engages in trade: to import needed goods and services, or to export goods and services for profit.

Comparative Advantage

Comparative Advantage Interactivity

Comparative advantage is important to international trade. Specifically, it explains how countries profit from international trade. In this interactivity, you will learn about this economic concept. Click the player to begin.

View a printable version of the interactivity or an ADA compliant transcript.

Factors that Influence Economic Activity

A country's major exports and imports are largely determined by its comparative advantage. Factors that influence comparative advantage include access to natural resources, new technologies, and investment capital. The skill level of its workforce also is a factor. Investment capital is money used to buy or develop capital resources like equipment, tools, and machinery.

These funds can also help develop communication and transportation networks specific to a country's location. For instance, to access shipping lanes, landlocked countries must transport goods to the coast. Countries located on the coast or on an island have easier access to shipping lanes. This gives them a comparative advantage over landlocked countries. Similarly, countries with a reliable communication network can instantly transfer information across long distances. This provides a comparative advantage over countries that lack access to communication networks.

Economic Unions

Economic Unions Interactivity

A country's membership to a political or economic alliance can influence its economic activities. This is because countries belonging to an economic union can access different or larger markets. In this interactivity, you will examine some of the advantages and disadvantages of economic unions. Click the player to begin.

View a printable version of this interactivity or an ADA compliant transcript.

Changes in Economic Interactions

Changes in Economcic Interactions Interactivity

Economic interactions among countries change over time. Recent improvements in communication and transportation cause many of these changes. In this interactivity, you will compare and contrast economic systems from the past and present. Click the player to begin.

View a printable version of this interactivity or an ADA compliant transcript.

 

International Trade Review

International Trade Review Interactivity

Now that you have learned about international trade, comparative advantage, and economic unions, review your knowledge in this interactivity. Click the player to get started.