Free Trade

Today's Terms

• free trade
• import and export
• balance of trade
• exchange rate

Free Trade

Free Trade
is the economic policy of not discriminating against imports from and exports to foreign jurisdictions

Import

a good brought into a jurisdiction, especially across a national border, from an external source

Export

something that is shipped or brought to another country to be sold or traded

Untitled Slide

Balance of Trade

The difference in value between a country's imports and exports.

Favorable or Unfavorable

Exchange Rate

The price of a nation’s currency in terms of another currency

Interpret the Cartoon To Follow

• who are the characters
• who do they represent or symbolize, any other symbols
• what is being said, directly and indirectly

Untitled Slide

During the Video

• who is the US's largest trading partner
• why don't we produce our own clothes
• explain how international trade reshuffles jobs
• what are the four dependents of trade
• what happens when the US dollar appreciates (goes up in value)

Absolute & Comparative Advantange

Answers

• Canada
• it is more cost effective to specialize on making and exporting other goods
• domestic jobs leave but we save on imports and use the money to fund new jobs at home
• demand for a country's goods / political stability / interest rates /exchange rates
• another country's money value depreciates and its gets cheaper to import goods, but our exports become costlier in foreign markets

Untitled Slide

Untitled Slide