Lesson 2 - Page 1 - How does trade shape the global economy?
Objectives: In this lesson, your team will:
- Use maps to illustrate patterns of global trade.
- Discuss the advantages and disadvantages of trade for different types of individuals and countries.
- Evaluate relationships between different regional economic blocs in the global economy.
General Tips: Here are a few suggestions that can help your team complete this Lesson together:
- Click the
 icon to open a new window with instructions for completing the lesson's collaborative learning activities (listed as Step 1, Step 2, and so forth).
- Your team should use the Group Discussion Board (located in the Communication area) to discuss questions that appear in blue boxes.
- Important vocabulary terms are defined in the Glossary (located in the Documents area).
- Complete this Lesson according to the schedule provided by your instructor. Doing so will ensure that your team learns together.
- Elect leaders for each local group who can help coordinate the efforts of the entire team.
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Why do countries trade?
Most countries have reached the conclusion that trade is
necessary to maintain an adequate standard of living. If countries were
to rely solely upon raw materials found domestically, they would only
produce a limited number of products. Instead, countries specialize in
particular commodities whenever they can take advantage of locally based
materials and specialist knowledge and skills, and then trade these
goods for goods produced more efficiently elsewhere. For example, Japan
and South Korea both specialize in electronic goods. Their average cost
of production is relatively low, and they can trade electronics for
goods that would be relatively expensive to produce domestically.
In this lesson, your team will learn more about the role
of trade in shaping the global economy.
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