Transcript Comparing Economies

Comparing Economies
International Trade
An Interdependent World
International Trade
International Trade
No country produces
everything it needs to
surviveinternational
trading
Trading helps county’s deal
with problem of scarcity
Countries trade b/c they
have comparative
advantage ability of a
country to produce a good at
a lower cost than another
country
International Trade
Gov’t restricts some international trade
“home” countries lose money
– Tariff tax on imported goods
Quotalimits on amount of good allowed
International Trade
Trade Agreements
Most countries aim for free trade reduce trade
barriers
Many countries create free trade zones
– European Union: organization of Euro nations
– NAFTA: North American Free Trade Agreement (US,
Can, Mex)
– The World Trade Organization: oversee trade
among nations
International Trade
Economic Systems
Not all economic
systems are alike
– Market Economy:
Private citizens own
the factors of
production
Individual freedom
(what, how, for whom)
Competition
Higher GDP
International Trade
Command Economy: Individuals have little
influence on economic system
– Major economic decisions are made by gov’t
– Socialism: means of production owned by
society
– Communism: Karl Marx believed socialism
would evolve into communism one social
class, common property, no gov’t
– Gov’t Control
– Slow growth
International Trade
– Mixed Economy: Individuals are free, but
follow gov’t regulation
Free enterprise is combined with gov’t decisions
Gov’t acts as consumer and business
International Trade
Economies in Transition
Some countries are trying
to convert from a
command economy to a
mixed, or market,
economy
– China, Russia
Some countries are
considered to be
developing because they
are trying to start a
market based economy
from scratch
traditional
Interdependent World
An Interdependent World
Ppl/countries all over world depend on
each other for goods/services
US relies on massive imports of fuel from
other nations
We sell wheat, computers, machinery
Interdependent World
Global Issues
– Growing problem is economic inequality
among nations 35 rich; 165 poor
– Most poor nations have traditional
economies, but are considered developing
nations because they are trying to
industrialize
– Environmental destruction acid rain,
increase conservation
– Drug trafficking, millions of refugees,
terrorism
Interdependent World
The United Nations- 1944
Internationalism countries should come
together to promote common aims
United Nations goals
–
–
–
–
Maintain international peace
develop friendly relations among countries
promote justice and cooperation
seek solutions to global problems
UN often contributes peacekeeping soldiers to
war torn countries
Interdependent World
Human Rights
Basic freedoms that all ppl. should enjoy
safety, food, shelter
Many countries violate ppl. for speaking
personal opinions- China, Cuba, Sudan
Universal Declaration of Human Rights
– 1948- Protection of rights, raise standard of
living
Interdependent World
UN security council holds tribunals
(courts) to hear cases about violations of
human rights
Tribunals hear cases about genocide
mass killing of group of ppl (Darfur,
Sudan)
UN encourages spread of democracy and
human rights US foreign policy
Interdependent World
South Africa
– Apartheid racial
separation between
white and black
– UN and EU ordered
economic
sanctions(punishment
) against South Africa
– 1994-Nelson Mandela
became 1st AA
president
Interdependent World
Cold War
– Years following WWII, Joseph Stalin, of
Russia, forced surrounding countries to
become satellites
– World divided between Communism (SU) and
Democracy (US)
– 1989- Communism ends in Russia