March 3rd
March 9th
TCSS ECONOMICS: Unit 4 INTERNATIONAL ECONOMICS
Unit Essential Question: Why do individuals, businesses, and governments choose to trade goods and services with other nations?
TIME FRAME: 20 Days
Capstone Requirements during this Unit
Mentor Log Due
Portfolio Check #3
Unit Resources:
I do –
We do –
You do –
Teacher notes p. 76-92
International Kaboom
Unit 4 map
All of Unit 4 notes --http://prezi.com/mxqudg2ohe2c/unit-5international-trade/
International Trade Review Game
Unit 4 standards questions
Unit 4 practice assessment questions
Concept 1: Absolute and Comparative Advantage (3 days)
SSEIN1A: Define and distinguish between absolute advantage and comparative advantage.
SSENI1B: Explain that most trade takes place because of comparative advantage in the production of a good or service.
Lesson Essential Question: Why would a nation choose to trade certain goods with another nation?
Enduring Understanding/Theme: Scarcity / Individuals, Groups, and Institutions / Governance / Location / Technological Innovation
KNOW





Absolute Advantage
Comparative Advantage
Opportunity Cost
Exchange/Trade
Specialization
UNDERSTAND
BE ABLE TO DO (DOK 2+)
 Difference between absolute and
 Assess the difference between absolute
comparative advantage
and comparative advantage
 Trade occurs based on mutual satisfaction
 Critique the trade decisions of a nation
based on opportunity cost
 Which nation has absolute and comparative
advantage in certain scenarios
 Explain why a nation would choose to
specialize in certain goods
 Why a nation would specialize
 Predict which nation has absolute and
 How opportunity cost impacts trade
comparative advantage in certain scenarios
decisions

Analyze absolute and comparative
 A nation would rather have comparative
advantage charts
advantage
 A nation can have comparative advantage
1
but not necessarily absolute advantage
(and vice versa)
2
Sample Formative Assessments:
Cars
Computers
JAPAN
25
100
U.S.A.
60
45
Which statement is true concerning absolute advantage?
A. Japan has absolute advantage in computers
B. Japan has absolute advantage in cars.
C. Japan has no absolute advantage.
D. Japan has absolute advantage in both
US has absolute advantage over Guam in all goods. Which trade possibility is true?
A. The terms of trade will be based on the United States’ absolute advantage.
B. Guam could benefit from a trade with the US, but the US would not benefit.
C. They will trade if each focuses on a good which they have comparative advantage.
D. Since US has absolute advantage in all goods, it’s unwise to trade.
RESOURCES:
I do –
We do –
You do –
Advantage notes and practice
Should Lebron mow the lawn?
Absolute Comparative Practice
Comparative and Absolute Advantage How to
Absolute and Comparative Advantage activity
Absolute and Comparative Advantage activity chart
Concept 2: Trade (4 days)
SSEIN2A: Define trade barriers as tariffs, quotas, embargoes, standards, and subsidies.
SSENI2B: Identify costs and benefits of trade barriers over time.
SSENI2C: List specific examples of trade barriers.
SSENI2D: List specific examples of trading blocks such as the EU, NAFTA, and ASEAN.
SSENI2E: Evaluate arguments for and against free trade.
SSEIN1C: Explain the difference between balance of trade and balance of payments.
Lesson Essential Question: Why do countries sometimes erect trade barriers and sometimes advocate free trade?
Enduring Understanding/Theme: Scarcity / Individuals, Groups, and Institutions / Governance / Location / Technological Innovation
3
KNOW
















Trade
Trade barrier
Tariff
Embargo
Standards
Subsidy
Quota
Cost vs. Benefit
Trading block
European Union
North American Free Trade Agreement
Association of South East Asian Nations
Free trade (internationalism)
Protectionist
Balance of trade
Balance of payments
UNDERSTAND
 Difference between balance of trade (net
exports) and balance of payments (value)
 Difference between trade block and trade
barrier
 Why a nation would erect trade barriers
and/or agreements
 Difference between tariff, embargo, quota,
standard, subsidy
 Examples of trade barriers
 How trade barriers affect producers and
consumers
 Difference between EU, NAFTA, ASEAN
 Internationalist v. Protectionist
 Cost and benefit of trade barriers over time
BE ABLE TO DO (DOK 2+)
 Distinguish between balance of trade and
balance of payments
 Contrast between trade blocks and trade
barriers
 Justify why nations erect trade barriers
and/or trade agreements
 Sort examples of tariff, embargo, standard,
subsidies, and quota
 Describe the various trade barriers and
trade agreements
 Assess the importance of EU, NAFTA, and
ASEAN
 Compare effects of trade barriers and trade
agreements on consumers and producers
 Explain the costs and benefits of trade
barriers over time.
 Evaluate arguments for/against free trade.
Sample Formative Assessments:
The calculation of a country’s balance of trade involves the value of its
A. Net exports and gross domestic product
C. Foreign exchange rate and discount rate
B. Exports and imports
D. Foreign investments and investments by domestic producers
A US tariff is placed on all imported MP3 players. Which statement is true?
A. Domestic producers of MP3 players will be hurt because they will now have more competition.
B. Foreign producers of MP3 players will be helped because the domestic goods are more expensive now.
C. Foreign producers of MP3 players will be hurt because their goods are more expensive now.
D. Domestic consumers will be helped because there will be fewer goods to choose from.
Which trade barrier is associated with laws that require certain shipping methods and proper handling of food or equipment?
A. standards
B. embargoes
C. subsidies
D. quotas
How are NAFTA, the EU, and ASEAN similar?
A. Each increases trade barriers among neighboring nations
B. Each promotes free trade with all nations of the world
C. Each decreases trade barriers among neighboring nations
D. Each promotes protectionist policies against all nations of the world.
4
Suppose the EU removes ALL tariffs, embargoes, subsidies, and quotas. What is MOST LIKELY to happen to the international value of the Euro?
A. No change because trade barriers do not affect exchange rates
B. Depreciate, because Europeans will buy more goods from other countries
C. Appreciate, because Europeans will buy more goods from other countries
D. Depreciate, because Americans will want more European goods
Which statement BEST supports the argument that countries should engage in free trade?
A. Free trade eliminates the need for exporters to pursue comparative advantage
B. Trade agreements encourage nations to allocate their resources more efficiently
C. Trade barriers prevent the need for importers to rely on absolute advantage
D. Trade agreements encourage less wealthy nations to develop into a mixed economy
One argument in favor of a tariff would be that it would
A. help foreign producers by allowing them to ship goods to the U.S.
B. reduce competition for domestic producers.
RESOURCES:
I do –
We do –
(see unit resources)
C. force foreign companies to ship goods that meet certain quality standards in the U.S.
D. help domestic consumers by allowing them to pay a lower price.
You do –
Trade Posters
International trade reading
Will the embargo end? -http://www.theguardian.com/world/2015/apr/11/
obama-castro-handshake-us-cuba
Which trade barrier?
Concept 3: Exchange Rates (4 days)
SSEIN3A: Define exchange rate as the price of one nation’s currency in terms of another nation’s currency.
SSEIN3B: Locate information on exchange rates.
SSENI3C: Interpret exchange rate tables.
SSENI3D: Explain why, when exchange rates change, some groups benefit and others lose.
Lesson Essential Question: How do changes in exchange rates impact the purchasing power of individuals in the United States and in other countries?
Enduring Understanding/Theme: Scarcity / Individuals, Groups, and Institutions / Governance / Location / Technological Innovation
KNOW
 Exchange rate
 Currency
 Flexible exchange rate
UNDERSTAND
 Exchange rate as the price of one nation’s
currency in terms of another nation’s
currency
BE ABLE TO DO (DOK 2+)
 Explain exchange rate
 Examine an exchange rate table
 Compute currency between two nations
5




Strong dollar
Weak dollar
Appreciate
Depreciate





Exchange rate tables
How to convert currency from one nation
to another
The strength of one nation’s currency
compared to another based on exchange
rate table
Characteristics of strong dollar and impact
internationally on consumers and
producers
Characteristics of weak dollar and impact
internationally on consumers and
producers



Evaluate the strength of one nation’s
currency compared to another based on
exchange rate table
Discern the characteristics of strong dollar
and its impact internationally on consumers
and producers
Discern the characteristics of weak dollar
and its impact internationally on consumers
and producers
Sample Formative Assessments:
If Janet decided to take a vacation to Canada to see Niagara Falls, how much would she need in order to cover the 60 Canadian dollar admission to the park?
A. $63.87
B. $56.37
C. $1.49
D. $29.57
1USD to the Euro
(the Euro In USD)
YEAR
RATE
2008
1.75
2009
1.68
2010
1.66
2011
1.42
Based on the table, which development MOST LIKELY occurred between 2008 and 2011?
A. Citizens in the US decide to travel abroad due to the appreciated value in the US currency
B. European consumers are able to purchase an increased quantity of US goods at lower prices
C. The US experiences inflationary symptoms as a result of the increased money supply decisions by the Federal Reserve
D. US companies are faced with increased challenges in finding a suitable nation to export goods
RESOURCES:
I do –
Exchange Rates ppt
We do –
Converting money practice:
http://www.studyzone.org/mtestprep/math8/a/ex
change_rate7p.cfm
You do –
Exchange rate practice
Strong and weak currency
6
7