report
Lesson Synopsis:
We live in an interdependent global community and the performance of our economy is increasingly shaped by policies of other nations. International trade is the voluntary exchange of goods and services by people of different nations. This lesson will explore the reasons for trade and explain absolute and comparative advantage.
TEKS:
E.3
Economics. The student understands the reasons for international trade and its importance to the United States and the global economy. The student is expected to:
E.3.A
Explain the concepts of absolute and comparative advantages.
E.3.B
Apply the concept of comparative advantage to explain why and how countries trade.
Social Studies Skills TEKS:
E.23
Social studies skills. The student uses problem-solving and decision-making skills, working independently and with others, in a variety of settings. The student is expected to:
E.23.E
Use a problem-solving process to identify a problem, gather information, list and consider options, consider advantages and disadvantages, choose and implement a solution, and evaluate the effectiveness of the solution.
E.24
Social studies skills. The student uses problem-solving and decision-making skills, working independently and with others, in a variety of settings. The student is expected to:
E.24A
Use a problem-solving process to identify a problem, gather information, list and consider options, consider advantages and disadvantages, choose and implement a solution, and evaluate the effectiveness of the solution.
Getting Ready for Instruction
Performance Indicator(s):
Create a T-Chart comparing two countries and two products they can produce. Apply this information and determine who has absolute advantage and comparative advantage for each product. Write an essay explaining why it would be beneficial for these countries to trade and what the terms of trade or trading range will be. (E.3A, E.3B; E.22E; E.23A) 1C; 5G
Key
We live in an interdependent global community and the performance of our economy is increasingly shaped by policies of other nations. International trade is the voluntary exchange of goods and services by people of different nations. This lesson will explore the reasons for trade and explain absolute and comparative advantage.
TEKS:
E.3
Economics. The student understands the reasons for international trade and its importance to the United States and the global economy. The student is expected to:
E.3.A
Explain the concepts of absolute and comparative advantages.
E.3.B
Apply the concept of comparative advantage to explain why and how countries trade.
Social Studies Skills TEKS:
E.23
Social studies skills. The student uses problem-solving and decision-making skills, working independently and with others, in a variety of settings. The student is expected to:
E.23.E
Use a problem-solving process to identify a problem, gather information, list and consider options, consider advantages and disadvantages, choose and implement a solution, and evaluate the effectiveness of the solution.
E.24
Social studies skills. The student uses problem-solving and decision-making skills, working independently and with others, in a variety of settings. The student is expected to:
E.24A
Use a problem-solving process to identify a problem, gather information, list and consider options, consider advantages and disadvantages, choose and implement a solution, and evaluate the effectiveness of the solution.
Getting Ready for Instruction
Performance Indicator(s):
Create a T-Chart comparing two countries and two products they can produce. Apply this information and determine who has absolute advantage and comparative advantage for each product. Write an essay explaining why it would be beneficial for these countries to trade and what the terms of trade or trading range will be. (E.3A, E.3B; E.22E; E.23A) 1C; 5G
Key