Economics – 1/15/14

I.  Bellwork:  Consider the following two states Assume they produce only these two goods.

	Michigan	Minnesota
Apples	12	8
Cherries	10	6

1. Which state has the absolute advantage in apples? ________________________
2. Which state has the absolute advantage in cherries? ________________________
3. Which state has the comparative advantage in apples? Show relationships ______________________

4. Which state has the comparative advantage in cherries? show relationships_____________________

II. Objective

• Analyze how the decisions made by a country’s central bank (or the Federal Reserve) impact a nation’s international trade
• Connect insights gained from specific details to an understanding of the text as a whole.

III.  Absolute & Comparative Advantage Quiz

IV.  Discuss 16-3 Foreign Exchange and Trade Deficits: pgs 456-461

• The Truth Behind the WTO?

• Exchange Rates

V.  Notebook

	How is it created?	Impact on Imports	Impact on Exports	Impact on the Balance of Trade
Strong Dollar
Weak Dollar

VI.  Classwork/Homework

• Pgs. 453-454

1.    What was the Smoot-Hawley Act and explain its impact?

2.    What is the WTO and what does it do?

3.    What is NAFTA and who does it involve?

• Page 456 Content Vocabulary (7)
• Page 461 2-7 Q&A

Economics F2013