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Trade Agreements 2012

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Leigh Stovall

on 11 February 2013

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Transcript of Trade Agreements 2012

Natural Resources, Global Trade, and Globalization... are products of the earth that people use to meet their needs. There are 2 types... Natural Resources 1. which are resources that cannot be used up. They can be replaced (naturally or grown again) Examples are solar energy, forests, plants, animals (unless the animal goes extinct) 2. which resources that are provided by the earth in limited supply. Examples are coal, oil, natural gas. Once these are gone, they are gone- for good!
What sorts of natural resources can we find in things around the room? Renewable Resources Nonrenewable Resources What type of resource do you think we use more of? Well, according to the U.S. Energy Information Admistration, of the energy we use comes from Nonrenewable Resources. That means that once we use all of that up, it is gone... for good. 92% When we say “energy,” remember that we are talking about more than just gasoline in cars… We use a lot of energy in our homes, in businesses, in industry, and for personal travel and transporting goods. - The industrial sector includes facilities and equipment used for manufacturing, agriculture, mining, and construction.
- The transportation sector comprises vehicles that transport people or goods, such as: cars, trucks, buses, motorcycles, trains, subways, aircraft, boats, barges, and even hot air balloons.
•- The residential sector consists of homes and apartments.
•- The commercial sector includes buildings such as offices, malls, stores, schools, hospitals, hotels, warehouses, restaurants, places of worship, and more. Renewable Resources or Renewable energy is also called “ energy” or “ power” because it doesn’t pollute the air or the water. Clean Green Nonrenewable resources tend to cause much more pollution and environmental harm than nonrenewable resources do. So, we know what we use energy for and we know that we get most of our energy from nonrenewable resources, but let's look at this in a bit more detail... Everything you see in this room, everything in your house, everything you are wearing, everything you are currently touching…- everything came from some sort of natural resource and usually they came from a whole variety of natural resources…. We use Natural Resources for more than just energy though! http://pbskids.org/loopscoops/electronics.html People and nations use natural resources to produce and exchange goods and services. Remember that a country’s economic system sets the rules for deciding goods and services will be produced, they will be produced and will receive them. Does anyone remember these 3 Economy types?— - Economy: Based on what was done in the past , it is often very primitive and simple, and everyone shares equally in goods and services . Example: tribal parts of south America or Africa Traditional Market Command - Economy: the government makes all economic decisions Government decides what is best for the people; Government controls land, labor, capital; Government decides who will work, where they will work, and what will be made; and finally government decides who will receive the goods and services; Example: China, North Korea
(Think... the government COMMANDS everything) Economy: is the opposite of a command economy; based on “free enterprise,” individuals and businesses make their own decisions and consumers decide what products to buy or support. Example: US
(think... you are free to sell whatever you want at the market, but that doesn't mean that people are guaranteed to buy it...) And here is one we haven’t talked about yet...

- Economy: Even in most Market Economies, there are still some Government regulations; There are really no pure command or market economies; Most nations today have a mixed economy; Market + Command = Mixed; Examples: Most democratic countries fall in this category- U.S., Brazil, Mexico, Canada, UK, etc. Mixed Good, I am glad we all remember that perfectly! Back to Natural Resources... …It is really important to note that natural resources are not distributed evenly around the world. This means that some areas and countries have of valuable natural resources and some areas have valuable natural resources. This uneven distribution affects the economies of the world’s countries and can lead to conflict. A LOT Very Few Generally, if a country has a lot of a certain natural resource, good, or type of food, they will sell their extras to other countries; they will
their “extra” resources in order to make money. On the other hand, if they do not have enough of something, they will it. Export Import Think...
EXit- port
In- port
(its not perfect) EX IM What areas of the world have what types of Natural Resources?
Let’s look at p. 95 Economic Activities world wide
- What type of Land Use do we have in the US?
- What are some resources in the US?
- Which parts of the world could be leading exporters of lumber/wood products? Now turn over to page 122-125. Look at these stamps, each has a category for Major Export and Major Import.
- What is a major export for European nations? Major import?
- How does this information compare to the map on 95? Does it support it? Have you ever heard the phrase "buy American" or "made proudly in the U.S.A"? In order to persuade people to buy stuff that was made in their own country (and thus made by people who had jobs in your country)

Governments created a special tax on imported goods- this special tax on imports is called a

If you have an extra tax on goods not made in your country, then the idea is that goods that are made in your country will be cheaper to buy and more people will buy them and then more people in your country will have jobs. Tariff. Sometimes Governments also put or number limits on certain products.

The government does this to make the imported goods more expensive and they are hoping that will persuade the buyer to buy the product made in their own country.

Example: If the government says the U.S. can only buy 1,000 Toyotas (made in Japan) per year, more people will have to buy Fords (made in the U.S.). Quotas But, this isn't always a win-win situation. If we say we won't buy stuff from another country, do you think they will still buy stuff from us? Probably not... Many times, countries will make agreements with other countries saying that they will always allow free trade with eachother (they are kind of like economic ). A really important one in the US is
it stands for the North America FreeTrade Agreement. Free Trade Alliances Remember, "Free trade" DOES MEAN THAT EVERYTHING IS FREE! What How Who If you have something that I want and I have something that you want, what can we do? We can TRADE! NOT There are many of these free trade agreements around the world... The largest free trade organization in the world is the E.U. which stands for the NAFTA That means that we trade "freely" with all North American Countries. European Union. Industry typically makes more money than agriculture, which means they become richer.
Countries with a great deal of manufacturing are called
Countries. Examples arecountries in Europe and North America, Japan, and Australia. Even South Korea, China and Taiwan Developed Countries that are working toward industrialization and often practice subsistence farming (growing enough food only for their own family) are called
Countries. Developing As technology has improved, it is easy to communicate with people all over the world. This is what is meant when people say world is “shrinking." Think first about the improvements in Transportation since the 1900’s.
How has that made the world shrink? Now think about improvements in Communication technology.
Let’s make a quick list... Telephone, cell phones, internet, email, Skype, video chat---

How has this made the world shrink? When you enter the work force, you will be more likely to work with people from other cultures so you have to ask yourself, what is my role in this shrinking world? First, you must learn --- lucky you, you’ve already passed Civics —you know your rights and responsibilities as a citizen. civic participation The second part of that is learning

of other cultures so that you will understand how to interact and respect those---—it really just makes you more informed and a better citizen. beliefs values So the question comes up, Why should we care about what happens on the other side of the world? Well the answer is… that we (as a world) have created a complex web of sharing resources.

We depend on one another for goods, raw materials, and markets to sell the goods.

This is called interdependence. http://www.ted.com/talks/thomas_thwaites_how_i_built_a_toaster_from_scratch.html His crazy experiment illustrates our interdependence in a cool way.
Why couldn’t he make the toaster? There are actually three SECTORS of economic activities.
activities are the first step of the process.
Most products from this sector are considered raw materials for other industries.
Major businesses include agriculture, agribusiness, fishing, forestry and all mining and quarrying industries. Primary activities include businesses that create a finished, usable product. Examples: manufacturing furniture, grinding coffee beans, assembling automobiles activities include businesses that create a finished, usable product. Examples: manufacturing furniture, grinding coffee beans, assembling automobiles Secondary activities are known as the service industry.

This includes —selling furniture, selling coffee latte, selling automobiles Tertiary If we think back to where natural resources are located, it makes sense that one is better than another for production of goods and services.
Example: Birmingham became a steel city because of so many natural resources in one place. OR
It easier to have toaster parts created elsewhere and construct it one place. Ad Activity location OOPS, you're going to have to write your own notes now :( Do you think it is a good idea for companies to do business all over the globe?
You know, your response could be different if you were a citizen of a developing country. Globalization
—1) the linking together of the world’s nations through trade and
2) the development of a world culture and interdependence among nations. Some people fear globalization might erase cultural traditions and customs. So, do you think you could live on your own? Literally, with no help from anyone? You might could, but would you enjoy it? A man in London asked himself this same question, this is what he came up with... So, kind of silly, but does he prove a point? Do you think you could've done better?
Could anyone? Researchers have created a term to describe the far-reaching effects of interdependence. Primary activity-- grow the cocoa beans
Secondary Activity-- dry the beans, roast the beans, grind them
Tertiary- Sell me a chocolate bar Using the Time Magazine insert in Textbook , students will read the article “How Trade changes Life” on pages 102-103. Let’s categorize some benefits and challenges of Globalization
Separate into one of two columns: benefit or challenge
1. New jobs for developing countries
2. Loss of jobs in industrialized countries
3. Lower prices for consumers
4. Environmental damage in developing countries with lax standards
5. Higher profits for business
6. Added pressure for international cooperation
7. Increased communications between people and countries
8. Possibility that the gap between rich and poor countries will widen Which benefit is most important to you? Explain.
Which challenge do you think will be the hardest to overcome?
What would you recommend that corporations and govts do to overcome this challenge? What is the European Union?
I'm glad you asked... So what do U.S. trade agreements
require of other countries? The U.S. has Free Trade agreements with Australia Bahrain Canada
Chile Costa Rica
Dominican Republic El Salvador
Guatemala Honduras Israel
Jordan Mexico Morocco
Nicaragua Oman Peru

President Obama signed free trade agreements with Colombia, Korea, and Panama on October 21, 2011, but the agreements have not been implemented yet. Often times, they require Fair Trade Fair Trade means...
1. Creating job opportunities for the poor.
2. Fair prices and payment to the poor.
3. No child labor and no slave labor.
4. Good working conditions

...just to name a few. It's Valentine's so let's talk about Chocolate. Why do people say that? We've looked at Imports and Exports on World Mapper, but let's do a quick review.
Answer the following questions with
Your country can produce at a lower price than other countries so you will ______________________ goods. Import or Export Goods shipped from one country to another country (when goods exit your country) are called... Goods that are brought in to a country from another country (when goods enter your country) are called Your country doesn’t produce enough goods on its own so you will ________________________ goods.
Your country is the primary source of the goods (only your country has this good) so you will ___________ goods.
Your country doesn’t have a certain product (like coffee) so you will _________________ goods. Your country produces more goods than it can use so you will _________________________ goods. Chocolate is made from the Cacao Bean. Are these countries
or Developing? ` So which of these sectors do think makes the most money? Who sells the most Chocolate in the U.S.? Do you think these developing countries practice Fair Trade? Could you live without chocolate? The agreements are very specific. Each is about a particular good and a promise that the U.S. will buy it in return for that countries cooperation.
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