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Wisconsin Economic Standard
D.12.4

Competition / Specialization & Trade

Explain and evaluate the effects of new technology, global economic interdependence, and competition on the development of national policies and on the lives of individuals and families in the United States and the world

Economic Concepts
Technological change  ||  Interdependence  ||  Competition  ||  Specialization
Comparative advantage  ||  Trade

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Links to Content Information

blue check mark Economic Analysis of International Trade: Comparative Advantage - Ricardo's Classical View
blue check mark Historical United States Census Data Browser - The data presented here describe the people and the economy of the US for each state and county from 1790 to 1970.
blue check mark International Trade - Chapter 19 from Essential Principles of Economics: A Hypermedia Text, First Revised Draft
blue check mark Sweat Shop - From the U.S. Department of Labor, a tour with information about sweat shops and what you can do to help end the practice.
blue check mark U.S. Foreign Agricultural Service - Foreign Trade Policy page.

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Links to Lesson Plans and other Suggested Teaching Strategies

blue arrow Limiting trade - Middle and High School level.  Students learn about various types of trade     restrictions and their effects by applying a model to determine who will benefit and who will be hurt by a tariff. From Focus on Economics: Geography, ©National Council on Economic Education.
blue arrow NAFTA: Are Jobs Being Sucked Out of the United States? - Grades 9-12. Students will explain the concepts of absolute and comparative advantage, present the arguments for and against free trade, and examine data concerning the effects of NAFTA on employment in the United States.
blue arrow Population Growth: Friend or Foe - Grades 9-12. The environment has recently been the focus of much research and discussion.  Because productive resources are limited, it is important that we use resources wisely to ensure that resources will be available for use in future generations.  Of concern to both environmentalists and economists are the trends in the world's population. (Students' version also available from link on page.)
blue arrow Rationing Transplants: An Ethical Problem - Grades 9-12. Students will explain the consequences of a non-market rationing process, evaluate the consequences of restricting organ transplants to U.S. citizens, and suggest alternative policies to reduce the scarcity of organs for transplant. (Students' version also available from link on page.)
blue arrow U.S. and EU Go Bananas Over Trade - Grades 9-12. Describes  the gains that nations receive when they engage in trade with each other.  Economists point to this "mutually beneficial" characteristic of trade: if both nations weren't better off, the deal wouldn't get done!
blue arrow We Live in an International Community - The purpose of this activity is to show that students are daily involved in the world of international trade and the world economic picture.
blue arrow Why Nations Trade - Middle and High School level.  After discussing the concept of comparative advantage, students in small groups engage in a simulation on the economic costs and benefits of trade. From Focus on Economics: Geography, ©National Council on Economic Education.

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List of Curricular Materials and Learning Activities

blue push pin Energy, Economics and the Environment: Case Studies and Teaching Activities for High School  by the Indiana Department of Education.  Students examine the economic issues involved in preserving the environment in four units:  Water Pollution, Forest Management, Renewable Energy Resources, and Global Warming.  Available through the Indiana Council for Economic Education .
blue push pin Focus on Economics: Civics and Government, from Economics America (search catalogue), available from Economics Wisconsin. Lesson 15, Unit 4: Why Would Governments Limit International Trade? - After examining three types of barriers erected by governments to restrict imports of foreign-made products, students debate the pros and cons of imposing barriers.   pp. 85-93
blue push pin Focus on Economics: Geography, from Economics America (search catalogue), available from Economics Wisconsin. Lesson 4: International Interdependence - After compiling a list of foreign-made goods they have purchased and hypothesizing reasons people buy goods from other countries, they look at graphical data concerning international trade. pp.30-37 
blue push pin The Basics of Foreign Trade and Exchange - Explains some of the principles underlying current international trade and trade relations between countries, and why international trade and investment take place. Includes a comprehensive description of the foreign exchange market. 1993.  Background information.  Available from Federal Reserve System. To find it, type "basics of foreign trade" (without the quote marks) in the keyword search box and click on Go.
blue push pin Virtual Economics: An Interactive Center for Economic Education, Version 2 - Each exhibit includes teaching tips, background information, a list of lessons, and video and audio clips that give additional information about the topic.  Available from Economics America (search catalogue). 
  • In section International  Economics, see exhibit:  Growth and Development
blue push pin Economics and the Environment: Eco-Detectives, from Economics America (search catalogue), available from Economics Wisconsin. Lesson 13--Will There Be Food For You? - When Earth's population grows, why don't people on Earth starve?, pp. 94-103.
blue push pin Focus: International Economics, from Economics America (search catalogue), available from Economics Wisconsin. Relevant lessons: 
  • 3:  Trade and Specialization - Students participate in a classroom simulation to learn how economic welfare is increased by trade and specialization.  To explain this outcome, they apply the principle of comparative advantage to their trading activity.  p.19
  • 4:  Trading Around the World - Several activities lead students to practical awareness of U.S. trade partners.  p.25
  • 9:  Ripples: Trade Barriers and Unintended Consequences - p.77
  • 16:  Trade With Japan: How Fair Is It? - This lesson focuses on the U.S. trade relationship with Japan, and more specifically on the free trade vs. fair trade controversy.  p.133
  • 17:  Should a Developing Country Have Free Trade? - After looking at some of the pros and cons of free trade, students form opinions about a protective tariff.  p.145
  • 18:  The NAFTA Debate - Students study the effects of tariffs and identify who gained and who lost when NAFTA was implemented.  p.155

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National Content Standards 5, 6, and 9.

    Scroll down the linked pages to locate the grade 12 benchmarks. 

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Email an expert

    Professor Mark Schug, University of Wisconsin-Milwaukee

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Developed by 
Lynn Kirby, Ph.D.
Larry Weiser, Ph.D.