Economics 11005 www'msu'edumilewsk6

1
Economics 1/10/05 www.msu.edu/milewsk6

• OBJECTIVE Examine the barriers to trade.
• I. Journal 58 pt.A
• -Read Business Week Newsclip p.480
• -Answer questions (1-2) p.480
• II. Journal 58 pt.B
• -notes on barriers to international trade
• III. Homework Due Friday 1/14/05
• 1.) Read Chapter 17 section3 p.481-485
• -Answer questions (1,3-5) p.485
• 2.) Read Chapter 18 section1 p.490-494
• -Answer questions (3-6) p.494
• 3.) Chapter 17 Review (available tomorrow)

2
The Next Two Weeks

• Monday 1/10/05 Journal 58
• Tuesday 1/11/05 Journal 59
• Wednesday 1/12/05 Ch17 Review Journals Due
• Thursday 1/13/05 Ch17 Test ( Ch18 sec1)
• Friday 1/14/05 Final Exam Review Homework Due
• Monday 1/17/05 Final Exam Review
• Tuesday 1/18/05 Finals (1,2,3)
• Wednesday 1/19/05 Finals (4,5,6)

3
The ways to stop trade

• Tariff tax placed on imports to increase their
  cost on the domestic market place
• Protective tariff tariff high enough to protect
  less-efficient domestic industries
• Revenue tariff a tariff high enough to generate
  income for the government without actually
  prohibiting imports

4
Other barriers to trade

• Quotas a limit on the number of goods entering
  a country. This keeps supply low and prices high
  for domestic producers
• Dumping selling products abroad at less than it
  cost to produce them at home
• Health inspections used to curb foreign
  agricultural products
• Import licenses high fee keeps the number of
  importers low

5
Arguments for Protection

• National defense a nation could become so
  dependent on other countries that during war time
  they will be unable to produce the materials
  necessary to win the war
• Promoting Infant Industries new/emerging
  industries need protection from foreign
  competition
• Protecting domestic jobs trade means those in
  jobs where we dont have a comparative advantage
  become unemployed. Unemployment negatively
  impacts our economy.

6
Growth of Free trade

• Keep money at home money should stay in the
  domestic economy according to protectionists.
  Free trades argue that this money will flow back
  under balance of payments

7
Economics 1/11/05 www.msu.edu/milewsk6

• OBJECTIVE Examine the new rule of trade.
• I. Journal 59 pt.A
• -Read Issues in Free Enterprise p.542-543
• -Answer questions (1-3) p.543
• II. Journal 59 pt.B
• -Questions on Commanding Heights Episode3
• III. Homework Due Friday 1/14/05
• 1.) Read Chapter 17 section3 p.481-485
• -Answer questions (1,3-5) p.485
• 2.) Read Chapter 18 section1 p.490-494
• -Answer questions (3-6) p.494
• 3.) Chapter 17 Review

8
Commanding Heights Episode3

• 1.) What era began with the fall of communism in
  the 1990s?
• 2.) What major events occur in 1992?
• 3.) What do open markets do according to
  supporters?
• 4.) What did Clinton do once he was in office?
• 5.) What is the happiest place on earth according
  to Krusty the clown? What is going on there?
• 6.) What is increasingly the source of capital
  funds?
• 7.) Why are fast flowing sources of capital
  viewed as a threat to some Asian economies?
• 8.) How is the U.S. connected to a borderless
  world?
• 9.) What does the new breed of global
  entrepreneur look like?

9
Economics 1/12/05 www.msu.edu/milewsk6

• OBJECTIVE Review for Chapter 17 Test.
• I. Journals 48-59 Due
• II. Mindjogger Video Review
• III. Chapter 17 Review
• IV. Homework Due Friday 1/14/05
• 1.) Read Chapter 17 section3 p.481-485
• -Answer questions (1,3-5) p.485
• 2.) Read Chapter 18 section1 p.490-494
• -Answer questions (3-6) p.494
• 3.) Chapter 17 Review
• REMINDER Chapter 17 Test Tomorrow!!!
• -Test includes Ch17 secs (1-3) Ch18 sec1

10
Economics 1/13/05 www.msu.edu/milewsk6

• OBJECTIVE Demonstrate mastery of Chapter 17.
• I. Chapter 17 Test
• II. Final Exam Review
• III. Homework Due TOMORROW
• 1.) Read Chapter 17 section3 p.481-485
• -Answer questions (1,3-5) p.485
• 2.) Read Chapter 18 section1 p.490-494
• -Answer questions (3-6) p.494
• 3.) Chapter 17 Review

11
Economics 1/14/05 www.msu.edu/milewsk6

• OBJECTIVE Review for Final Exam.
• I. Final Exam Review
• II. Rules for Final Exam
• 1.) To receive points your review MUST
• be 100 complete and accurate
• turned in the day of the exam at the
  beginning of the hour
• have your name on it
• 2.) Final Exam Review sessions
• Monday 230pm to 305pm
• Tuesday 700am to 735pm
• Wednesday 700am to 735am