This week we will dig into NAFTA, discussing its pros and cons. SS6E2 The student will give examples of how voluntary trade benefits buyers and sellers in Latin America and the Caribbean. a. Explain how specialization encourages trade between countries. Specialization encourages trade and can be a positive factor in a country’s economy. Specialization occurs when one nation can produce a good or service at a lower opportunity cost than another nation. Students should be able to discuss how this has helped countries in Latin America and the Caribbean. It is not necessary that students know specific nations for the CRCT, as questions will be of a broad nature. Students should also note where specialization has not functioned as expected. What are the potential problems of over-specialization, such as one- crop economies and lack of diversification? How can this impact a region’s economy? b. Compare and contrast different types of trade barriers, such as tariffs, quotas, and embargos. Students should be able to describe each of the listed trade barriers and apply them to Latin America and the Caribbean. Questions will not require students to associate trade barriers with specific countries but to explain an example provided in an assessment question. Students should be able to explain the reasons a specific trade barrier would be used and how that trade barrier would affect each country involved. c. Explain the functions of the North American Free Trade Agreement (NAFTA). Students should have a basic understanding about why NAFTA was formed. Explain the functions of NAFTA, which countries are involved, and the meaning of free trade. Understand key terminology, such as tariffs, quotas, imports, and exports. Have a basic understanding of the advantages and disadvantages of NAFTA. d. Explain why international trade requires a system for exchanging currencies between nations. Students should be able to explain the reasons why currency exchange systems facilitate international trade. Students should be able to identify examples, from Latin America and the Caribbean, on how international trade between these countries and other countries of the world has benefited from a system for the exchange of currency. Students do not need to know types of currency or how to calculate exchange rates. It is sufficient for them to know that exchange rates provide a procedure for determining the value of one country’s currency in terms of another country’s currency. They should also understand that without a system for exchanging currencies it would be very difficult to conduct international trade.
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12/20/2017 09:15:30 pm
I don’t think many of websites provide this type of information.
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April 2015
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