International Trade

You should be finalizing your own version of class notes for use during Exam #1 in Module 5.

 19.1    Describe the patterns and trends in international trade.

Understand what NAFTA, CAFTA and APEC are.

 19.2   Explain why nations engage in international trade and why trade benefits all nations.

Use the Boeing Aircraft Market on text pages 484-485 and the T- Shirt Market on text pages 485-488 to grasp this topic.

 19.1   Describe the patterns and trends in international trade.

A.  The U.S. sells (exports) its goods and services all over the globe, but primarily with Canada, Mexico, and Asia, Germany and England.  The U.S. buys (imports) goods and services from all over the globe, but primarily with neighbors mentioned above.  

B.  The U.S. in 1998 exported 11 percent of its output while importing 13%, more than doubling the percentages of its GDP traded with the world in 1960.

 19.2   Explain why nations engage in international trade and why trade benefits all nations.

A.  Nations trade because it conserves resources and employs resources in tasks for which each country has comparative advantage.  

B.  Countries who specialize  following comparative advantage jointly consume beyond limitations of their domestic abilities to produce and enhance efficient resource use.

Take the optional post-study bonus point quizzes on International Trade on Saturday following Module 4.

Expect to review for and to take Exam #1 during Module 5.

Take the optional pre-study bonus point quizzes on Demand and Supply on Sunday preceding Module 6.