Economics Wisconsin

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Wisconsin Economic Standard
D.12.13

Competition / Specialization and Trade

Describe and explain global economic interdependence and competition, using examples to illustrate their influence on national and international policies

Economic Concepts
Interdependence  ||  Competition  ||  Specialization  ||  Trade

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Links to Content Information

blue check mark Global Business - Information and links to trade regulations, trade policy, etiquette, country resources, and issues of free trade.
blue check mark Infonation - An easy-to-use, two-step database that allows you to view and compare the most up-to-date statistical data for the Member States of the United Nations.
blue check mark Interaction - This series of web pages outlines interesting facts about world hunger and why it is in the interest of wealthy nations to seek ways to solve the problem.
blue check mark U.S. Department of Commerce - The Department of Commerce promotes job creation, economic growth, sustainable development and improved living standards for all Americans by working in partnership with business, universities, communities and workers.
blue check mark U.S. Foreign Agricultural Service - Foreign Trade Policy page.
blue check mark U.S. International Trade Commission - an independent, quasi-judicial federal agency that provides objective trade expertise to both the legislative and executive branches of government, determines the impact of imports on U.S. industries, and directs actions against certain unfair trade practices, such as patent, trademark, and copyright infringement.
blue check mark USDA Economics and Statistics System - Especially see the sections on International Agriculture and Trade Issues.

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Links to Lesson Plans and other Suggested Teaching Strategies

blue arrow The Big Mac Index - Grades 9-12. This lesson helps students understand parity in purchasing power, exchange rates, and currency appreciation and depreciation.
blue arrow Economics and History - Students will investigate the pros and cons of international trade and examine how trade affects specific groups within our economy and several aspects of what prompts nations to enter into trade agreements or leads them down the road of protectionism. Uses the booklet "A World of Choices: Are We Better Off with International Trade?
blue arrow The Euro Makes Its Debut - Grades 9-12. Looks at the impact of having a centralized monetary policymaking authority.
blue arrow "Interdependence - (Grades 4 - 10) Students will explore interdependence by looking at the different players in the international petroleum industry.
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 Malaysian Government Introduces Currency Controls - Students will describe how exchange rates work, identify factors that influence them, and understand the effects of currency appreciation and depreciation on international trade.
blue arrow Mock OAS Conference - Students are asked to represent countries they have independently researched in a mock OAS conference. A preliminary introduction to the history, function and current status of the organization will be presented. As diplomats, they must come to the conference with a resolution to present to their fellow ambassadors that addresses a current issue/interest of his or her country. Resolutions are debated, committees are formed, amendments are made, and votes are taken to adopt or reject resolutions.
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 Soviet Past, Independent Future? - Grades 4-10. In this exercise, students research the cultural, political, and economic ties that remain among the former Soviet states. 
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.
blue arrow Other Web Sites - This page lists web sites offering a wealth of lesson plans for teaching economics, in addition to these lesson plans.

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List of Curricular Materials and Learning Activities 

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 3: Why Nations Trade - A simulation helps students assess the economic benefits and/or costs of decisions countries make about specialization. pp.20-29
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 MicroEconomics, see exhibits:
    • Competition and Market Structures
    • Market Failures
  • In section International  Economics, see exhibit:  International Trade
blue push pin Focus on Economics: United States History, from Economics America (search catalogue), available from Economics Wisconsin. Lesson 7--How Can Big Business Make Money from Tariffs? - Students investigate the impact of tariffs on businesses and consumers, then generalize about how incentives  influence special interest legislation.  pp.63-73
blue push pin Focus: International Economics, from Economics America (search catalogue), available from Economics Wisconsin. Relevant lessons: 
  • 2:  Why People and Nations Trade - Students apply the principle of comparative advantage to a hypothetical example of international trade.  p.7
  • 8:  Trade Barriers - This lesson describes different types of trade barriers and illustrates the gains that can accrue to a small group if the group is successful in imposing a trade barrier.  p.61
  • 10:  What Happens Here When Imports Are Banned? - This exercise is designed to isolate the effects of import restrictions on production and consumption patterns. p.81
  • 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 Larry Weiser, University of Wisconsin-Stevens Point

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Developed by 
Lynn Kirby, Ph.D., Education and Technology Consultant and
Larry Weiser, Ph.D., Program Director,  EconomicsWisconsin
University of Wisconsin--Stevens Point