Agenda Anything New? Homework Quiz Keynes vs. Hayek Music Video International Economics Intro to...
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![Page 1: Agenda Anything New? Homework Quiz Keynes vs. Hayek Music Video International Economics Intro to Chapter to Chapter 37 HOMEWORK Read “The Last Word” Chapter.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f2a5503460f94c43ea1/html5/thumbnails/1.jpg)
agenda
Anything New?HomeworkQuizKeynes vs. Hayek Music VideoInternational Economics
Intro to Chapter to Chapter 37HOMEWORK
Read “The Last Word”Chapter 37…Question 12 & 15 and Problems 1, 2 & 4
![Page 2: Agenda Anything New? Homework Quiz Keynes vs. Hayek Music Video International Economics Intro to Chapter to Chapter 37 HOMEWORK Read “The Last Word” Chapter.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f2a5503460f94c43ea1/html5/thumbnails/2.jpg)
Anything New?
![Page 3: Agenda Anything New? Homework Quiz Keynes vs. Hayek Music Video International Economics Intro to Chapter to Chapter 37 HOMEWORK Read “The Last Word” Chapter.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f2a5503460f94c43ea1/html5/thumbnails/3.jpg)
HomeworkChapter 36
Question 6 and Problems 1, 2
![Page 4: Agenda Anything New? Homework Quiz Keynes vs. Hayek Music Video International Economics Intro to Chapter to Chapter 37 HOMEWORK Read “The Last Word” Chapter.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f2a5503460f94c43ea1/html5/thumbnails/4.jpg)
Quiz – Chapter 35 & 36
![Page 5: Agenda Anything New? Homework Quiz Keynes vs. Hayek Music Video International Economics Intro to Chapter to Chapter 37 HOMEWORK Read “The Last Word” Chapter.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f2a5503460f94c43ea1/html5/thumbnails/5.jpg)
Theories Revisited
Free Market (F.A. Hayek)
vs.
Keynesian (John Maynard Keynes)
http://www.youtube.com/watch?v=d0nERTFo-Sk
![Page 6: Agenda Anything New? Homework Quiz Keynes vs. Hayek Music Video International Economics Intro to Chapter to Chapter 37 HOMEWORK Read “The Last Word” Chapter.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f2a5503460f94c43ea1/html5/thumbnails/6.jpg)
Three Minute Break
![Page 7: Agenda Anything New? Homework Quiz Keynes vs. Hayek Music Video International Economics Intro to Chapter to Chapter 37 HOMEWORK Read “The Last Word” Chapter.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f2a5503460f94c43ea1/html5/thumbnails/7.jpg)
International Economics Chapters 37 & 38
International Trade or Globalization
• Based on specialization
• Economic theory is called the Law of Comparative Advantage
• Law of Comparative Advantage was developed by David Ricardo
• Law of Comparative Advantage says (in simple words)…
Do what you do best (specialize) and buy from others what they do best
• Countries are no different than people or businesses
![Page 8: Agenda Anything New? Homework Quiz Keynes vs. Hayek Music Video International Economics Intro to Chapter to Chapter 37 HOMEWORK Read “The Last Word” Chapter.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f2a5503460f94c43ea1/html5/thumbnails/8.jpg)
International Economics Chapters 37 & 38
Why Specialize?
Because resources (land, labor, human capital and physical capital) are not equally distributed among countries
![Page 9: Agenda Anything New? Homework Quiz Keynes vs. Hayek Music Video International Economics Intro to Chapter to Chapter 37 HOMEWORK Read “The Last Word” Chapter.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f2a5503460f94c43ea1/html5/thumbnails/9.jpg)
International Economics Chapters 37 & 38
Resources (land, labor, human capital and physical capital) are not equally distributed among countries.
•Australia has lots of land•China has lots of labor•US has lots of human capital•Japan has lots of physical capital
So it makes sense that Australia makes stuff that needs land (uggs?), China makes stuff that needs lots of labor (clothes?), the US makes stuff that needs lots of human capital (airplanes?) and Japan makes stuff that needs physical capital (cars?)
![Page 10: Agenda Anything New? Homework Quiz Keynes vs. Hayek Music Video International Economics Intro to Chapter to Chapter 37 HOMEWORK Read “The Last Word” Chapter.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f2a5503460f94c43ea1/html5/thumbnails/10.jpg)
International Economics Chapters 37 & 38
Why Specialize?
Because resources (land, labor, human capital and physical capital) are not equally distributed among countries
For example…Canada, the US and Brazil and my breakfast
![Page 11: Agenda Anything New? Homework Quiz Keynes vs. Hayek Music Video International Economics Intro to Chapter to Chapter 37 HOMEWORK Read “The Last Word” Chapter.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f2a5503460f94c43ea1/html5/thumbnails/11.jpg)
International Economics Chapters 37 & 38
A few key terms…
Exports – Made in the US, sold in other countries
Imports – Made in other countries, Sold in the US
Trade Surplus = Exports greater than Imports (or imports less than exports)
Trade Deficit = Imports greater than exports (or exports less than imports)
Where is the US currently?
![Page 12: Agenda Anything New? Homework Quiz Keynes vs. Hayek Music Video International Economics Intro to Chapter to Chapter 37 HOMEWORK Read “The Last Word” Chapter.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f2a5503460f94c43ea1/html5/thumbnails/12.jpg)
International Economics Chapters 37 & 38
Table 37.1
Figure 37.3
![Page 13: Agenda Anything New? Homework Quiz Keynes vs. Hayek Music Video International Economics Intro to Chapter to Chapter 37 HOMEWORK Read “The Last Word” Chapter.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f2a5503460f94c43ea1/html5/thumbnails/13.jpg)
International Economics Chapters 37 & 38
Non Currency ways to manage (influence) trade
1. Tarriffs
2. Quotas
3. Barriers
4. Subsidies
Why manage trade?
![Page 14: Agenda Anything New? Homework Quiz Keynes vs. Hayek Music Video International Economics Intro to Chapter to Chapter 37 HOMEWORK Read “The Last Word” Chapter.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f2a5503460f94c43ea1/html5/thumbnails/14.jpg)
International Economics Chapters 37 & 38
Table 37.1
Figure 37.3
![Page 15: Agenda Anything New? Homework Quiz Keynes vs. Hayek Music Video International Economics Intro to Chapter to Chapter 37 HOMEWORK Read “The Last Word” Chapter.](https://reader036.fdocuments.net/reader036/viewer/2022083005/56649f2a5503460f94c43ea1/html5/thumbnails/15.jpg)