Graphic Organizer SPECIALIZATION TRADE INTERDEPENDENCE Michigan Citizenship Collaborative Curriculum Page 1 of 14
Big Idea Card Big Ideas of Lesson 5, Unit 6 Countries trade with each other for the same reasons people trade with each other. They do not have the resources or capability to satisfy their own needs and wants. Countries have been trading with each other for thousands of years because trade benefits trading partners. Improvements in communication and transportation have greatly changed global trade. Over time the speed, volume, geographic range, diversity and complexity of global trade have increased. Countries specialize in the goods they can produce most efficiently and trade to get other goods they want or need. Specialization and trade make the countries of the world interdependent. Michigan Citizenship Collaborative Curriculum Page 2 of 14
Word Cards 27 integration combining parts so that they work together Example: The integration of communication and transportation systems across the planet has made global trade possible. () 28 global trade the exchange of goods or services between individuals, organizations, or governments of different nations Example: Many nations of the world participate in global or international trade. () 29 currency 30 exchange rate 1 $ =??? Euros money; a medium of exchange an amount of domestic currency compared to an equivalent amount of foreign currency Example: Each country has its own type of currency. 31 Euro a single currency shared by many countries that belong to the European Union () Example: The Euro is the official currency in countries such as France, Spain and Germany. () Example: The exchange rate today was one U.S. dollar to about 6 Chinese Yuan. 32 specialization a method of production where a country focuses on the production of a limited scope of products in order to gain greater degrees of efficiency () Example: Specialization is the basis of global trade. () Michigan Citizenship Collaborative Curriculum Page 3 of 14
33 interdependence the condition when countries are dependent on other each other for products they cannot produce efficiently for themselves Example: Interdependence happens as a result of specialization. () Michigan Citizenship Collaborative Curriculum Page 4 of 14
ROUND 1 What did you start with? What did you end with? Comments on the trading: TRADING SIMULATION ROUND 2 What did you start with? What did you end with? Comments on the trading: THINKING ABOUT THE SIMULATION How was trading different in ROUND 2? What did you learn about trading? Michigan Citizenship Collaborative Curriculum Page 5 of 14
PowerPoint Notes 1. Why do we usually use money instead of trading goods for goods? 2. What is shown on the slide (Slide 11)? 3. Is global trade something new??? yes no Give evidence for your answer: 4. What are the top five trading partners of the United States? PREDICTION ACTUAL 1 1 2 2 3 3 4 4 5 5 5. What export do you think the cartogram on Slide 35 shows? 6. What do you think are other major U.S. exports? Michigan Citizenship Collaborative Curriculum Page 6 of 14
PowerPoint Notes, page 2 7. Why do countries export goods? 8. What imported good do you think the cartogram shows? 9. Agree or disagree? Explain your answer. 10. What do you think are other major U.S. imports? 11. Why do countries import goods? 12. Where do you think Levi s Jeans are made? 13. Michigan Citizenship Collaborative Curriculum Page 7 of 14
1 U. S. Dollar = Canadian Dollar Chinese Yuan Euro Greek Drachma Haitian Gourde Indian Rupee Iraqi Dinar Japanese Yen Mongolian Tugrik Nigerian Naira North Korean Won Saudi Riyal South Korean Won Exchange Rate Tracker Class Data Date Date Date Date Date Date Date Currency Converter. Oanda Corp. 1996-2014. 21 January 2015 <http://www.oanda.com/currency/converter/>. Michigan Citizenship Collaborative Curriculum Page 8 of 14
Exchange Rate Tracker Partner Data Currency Converter. Oanda Corp. 1996-2014. 21 January 2015 <http://www.oanda.com/currency/converter/>. Partners: Assigned Currency: Date 1 U.S. Dollar = Michigan Citizenship Collaborative Curriculum Page 9 of 14
Trade Data for 2013 Data are goods only, in billions of dollars Rank Country Exports Imports Total Trade Percent of Total Trade 1 Canada 300.3 332.1 632.4 16.4% 2 China 122.0 440.4 562.4 14.6% 3 Mexico 226.2 280.5 506.6 13.2% 4 Japan 65.1 138.5 203.7 5.3% 5 Germany 47.4 114.6 162.1 4.2% 6 Korea, South 41.6 62.2 103.8 2.7% 7 United Kingdom 47.4 52.6 100.0 2.6% 8 France 32.0 45.3 77.3 2.0% 9 Brazil 44.1 27.6 71.7 1.9% 10 Saudi Arabia 19.0 51.8 70.8 1.8% Trade Data http://www.census.gov/foreign-trade/statistics/highlights/top/top1312yr.html 1. What percentage of U.S. trade comes from trade with Canada, China, and Mexico combined? 2. What does this tell you about trade with these three countries? 3. A favorable balance of trade means a country exports more than it imports. With which countries does the U.S have a favorable balance of trade? 4. With what country does the U.S. appear to have the most unfavorable balance of trade? 5. How might the unfavorable balance of trade with this country be a problem? 6. How does the U.S. balance of trade with Canada compare with the balance of trade with China? Michigan Citizenship Collaborative Curriculum Page 10 of 14
Trade Data for 2013 Sample Answers Data are goods only, in billions of dollars Rank Country Exports Imports Total Trade Percent of Total Trade 1 Canada 300.3 332.1 632.4 16.4% 2 China 122.0 440.4 562.4 14.6% 3 Mexico 226.2 280.5 506.6 13.2% 4 Japan 65.1 138.5 203.7 5.3% 5 Germany 47.4 114.6 162.1 4.2% 6 Korea, South 41.6 62.2 103.8 2.7% 7 United Kingdom 47.4 52.6 100.0 2.6% 8 France 32.0 45.3 77.3 2.0% 9 Brazil 44.1 27.6 71.7 1.9% 10 Saudi Arabia 19.0 51.8 70.8 1.8% Trade Data.. http://www.census.gov/foreign-trade/statistics/highlights/top/top1312yr.html 7. What percentage of U.S. trade comes from trade with Canada, China, and Mexico combined? 44.2% 8. What does this tell you about trade with these three countries? Almost half of U.S. trade is with these three countries so trade with these countries is very important to the United States. 9. A favorable balance of trade means a country exports more than it imports. With which countries does the U.S have a favorable balance of trade? only Brazil 10. With what country does the U.S. appear to have the most unfavorable balance of trade? China 11. How might the unfavorable balance of trade with this country be a problem? The U.S. could get too dependent on Chinese goods and owe China a lot of money. 12. How does the U.S. balance of trade with Canada compare with the balance of trade with China? The U.S. almost has an equal balance of trade with Canada but it has a very unfavorable balance of trade with China. Michigan Citizenship Collaborative Curriculum Page 11 of 14
Top U.S. Exports to the World, 2013 (In thousands of dollars) Civilian aircraft, engines, equipment, and parts 105,547,180 Fuel oil 64,344,343 Petroleum products, other 61,014,197 Passenger cars, new and used 56,097,345 Other parts and accessories of vehicles 54,645,906 Industrial machines, other 48,803,393 Pharmaceutical preparations 47,937,979 Semiconductors 42,580,142 Electric apparatus 40,137,919 Telecommunications equipment 39,710,737 Plastic materials 36,174,271 Chemicals-organic 35,422,761 Medicinal equipment 34,086,563 Nonmonetary gold 33,406,928 Minimum value shipments 32,130,566 Computer accessories 31,362,045 Chemicals-other 30,378,192 Industrial engines 29,199,903 Measuring, testing, control instruments 24,751,304 Other industrial supplies 24,681,324 Other household goods 23,593,730 Soybeans 22,876,737 Gem diamonds 20,909,157 Trucks, buses and special purpose vehicles 20,736,458 Finished metal shapes 20,206,347 Meat, poultry, etc. 18,463,541 Computers 16,690,431 Engines and engine parts (carburetors, pistons, etc.) 16,467,626 Materials handling equipment 15,294,161 Excavating machinery 14,714,628 Generators, accessories 14,180,613 Newsprint 13,377,396 Other foods 12,862,322 Drilling & oilfield equipment 12,247,606 Jewelry, etc 11,763,202 Toiletries and cosmetics 11,309,941 Iron and steel mill products 11,116,258 Photo, service industry machinery 11,072,465 Laboratory testing instruments 10,979,867 Wheat 10,686,675 U.S. Exports to the World. http://www.census.gov/foreign-trade/statistics/product/enduse/exports/c0000.html Michigan Citizenship Collaborative Curriculum Page 12 of 14
Top U.S. Imports, 2013 (In thousands of dollars) Crude oil 272,465,752 Passenger cars, new and used 152,667,969 Other parts and accessories 92,002,958 Other (clocks, port typewriters, oth household gds 90,187,110 Medicinal, dental and pharmaceutical preparations 84,042,277 Computers 64,667,781 Computer accessories, peripherals and parts 56,491,001 Telecommunications equipment 54,383,226 U.S. goods returned, and reimports 51,843,082 Apparel and household goods-cotton 48,647,938 Other petroleum products 48,401,548 Other industrial machinery 47,232,350 Electric apparatus and parts, n.e.c. 45,693,624 Fuel oil 44,295,244 Apparel and household goods-other textiles 41,869,808 Semiconductors and related devices 41,448,071 Toys, shooting and sporting goods, and bicycles 33,255,146 Other scientific, medical and hospital equipment 32,500,950 Other (boxes, belting, glass, abrasives, etc.) 29,229,469 Television receivers, VCRs & other video equip. 28,759,355 Furniture, household items, baskets 27,578,036 Engines and engine parts 26,392,911 Industrial organic chemicals 26,381,402 Complete and assembled 25,334,707 Gem diamonds-uncut or unset 23,401,040 Household and kitchen appliances 23,386,832 Industrial engines, pumps, compressors & generators 22,046,309 Generators, transformers, and accessories 21,208,265 Footwear of leather, rubber, or other materials 19,525,866 Measuring, testing and control instruments 18,784,036 Iron and steel mill products-semi-finished 18,106,668 Fish and shellfish 17,936,163 Engines for civilian aircraft 17,302,492 Finished metal shapes & advanced manuf, except steel 16,841,855 Photo and service industry machinery & trade tools 16,384,550 Nonmonetary gold 15,911,048 Fertilizers, pesticides, and insecticides 15,471,591 Parts for civilian aircraft 15,319,604 Plastic materials 15,318,267 Other products (notions, writing and art supplies) 13,928,131 Civilian aircraft, complete-all types 13,752,811 U.S. Imports. http://www.census.gov/foreign-trade/statistics/product/enduse/imports/c0000.html Michigan Citizenship Collaborative Curriculum Page 13 of 14
Where are Levi s Jeans Made? 1. Yarn is sourced from the Republic of Korea. 2. Fabric is woven and dyed in Taipei, China. 3. Fabric is cut in Bangladesh. 4. Zippers are produced in the Philippines. 5. Assembled into jeans in Cambodia. 6. Exported to the rest of the world. DIRECTIONS: Use arrows and the numbers above to show the Journey of Levi s Jeans. Michigan Citizenship Collaborative Curriculum Page 14 of 14