globalization unit lesson 1 global economics. objectives review economic systems. introduce key...
TRANSCRIPT
GLOBALIZATION UNIT LESSON 1
GLOBAL ECONOMICS
OBJECTIVES
• Review economic systems.• Introduce key economic terms related to
globalization.
WARM UP & REVIEW
• What is economy?• Way in which we
manage resources to meet needs
• What are resources?• Human: time, $, skill• Country: natural
resources, capital, labor force and technology
• Limited resources = Scarcity
BASIC ECONOMIC SYSTEMS
• 3 Basic Questions?• What to produce?• How to produce?• For whom to produce?
• Basic Systems?• Traditional• Cultural needs,
subsistence• Market• Free choice, competition
• Command• Govt decides, controls
• MIXED
• Economics • Study of decision-
making & resource allocation.
THE LAW OF SUPPLY & DEMAND
• Supply• The amt of a certain good
or service producers are willing to supply when receiving a certain price
• Law of Supply: The higher the price, the higher the quantity produced
•
• Demand• How much (quantity) of
a product or service people are willing to buy at a certain price
• Law of Demand: The higher the price, the less demanded
WHAT’S THIS MEAN?
• Desire equilibrium: At the given price, suppliers sell all the goods they’ve produced & consumers get all the goods they’re demanding.
• Too much supply (surplus), not enough demand = prices drop
• Too much demand & not enough supply (deficit) = prices rise
• “Market fluctuations”
GLOBAL ECONOMY
• Goal is effective resource mgmt for most efficient production
• Weigh opportunity cost• Value of alternative
that must be forgone to pursue certain action
• Specialization & Comparative Advantage• Nation makes
certain products at lower cost (higher quality) than others
GLOBAL TRADE
• Make better product• Make cheaper product• If can’t make on own = import• Exchange rates = more for $ elsewhere• Sell to more = make more $• Ease of access to markets
GLOBALIZATION REVIEW
• What is globalization?• Growing integration of
the world’s economies and societies.
• Open country to free trade
• Open currency markets
• Privatize business
GLOBAL IMPACT
• As global economy becomes more interdependent• Dvpt depends on
wise use of globally scarce resources• Decisions in one
location affect all others
ACTIVITY
• Illustrated Global Economic Terms• Working in groups of 4. create illustrations for each of the
terms on your vocab page.
CLOSURE
• What factors drive global economic decision making?
• Resource Scarcity• Supply & Demand• Opportunity Cost• Comparative
Advantage
HOMEWORK
• Choices Reading – International Trade: Competition & Cooperation in a Globalized World
• Available in classroom