International Trade

International Trade

Presenter(s): Product: Price to sell at: Cost Per Unit BreakEven Expected Profit

Luke & Dave Ipod/Iphone Earbuds & Mic 10.00 $1.74 8 units $336.00

Sean & Alex Power Balance Bracelets 4.00 $1.89 27 units $100.00

Scott USB Band 10.00 $4.66 11 units $100.00

Holly & Josie Knit Circle Scarves 10.00 $4.00 10 units $144.00

Monica Crackle Nail Polish 5.00 $2.96 18 units $50.00

Danielle Hair Feathers 4.00 $0.49 25 units $700.00

Josh & Keegan Supreme' hats 30.00 $8.76 4 units $233.64

Matt & Paul Stylish Phone Cases        

Sarah          

BreakEven is the the number of units that need to be sold in order to get our original investment back.

Advantages: A Review

• Meeting our Needs– (Trading our surplus for things we can’t

produce.)

• Job Creation– (Demand for OUR goods means we need

more people to produce/manufacture/etc.)

• Attracting Investment• New Technologies• Diversifying Products and Services

Disadvantages:

• Trade can mean prosperity for some….

• It can also lead to economic exploitation, loss of cultural identity, or physical harm.

Support of Non-Democratic Systems

• In some of the coffee growing countries, coffee is a major source of revenue for the governments. (The farms are government owned.)

• The people who farm these areas would like some of the land to be used for food instead. (But this would decrease the amount of money the government could make through selling coffee.)

Cultural Identity Issues

• Culture is a major export of the United States. (And we are their major trading partner!)

• Films, music, television, sports, and books from the United States are popular world-wide!

• Each of these promotes what it is like to live in America, to be American, to live the American lifestyle.

The Culture Consumer

• Consumers are often overwhelmed and influenced by the ideals of American society.

• By ideals we mean: What life should be like, how leisure time should be spent, how family should interact with each other, what place men/women play in society – sometimes positive, sometimes negative.

• Products carry these cultural messages. (Whether intentionally or unintentionally.)

• http://www.youtube.com/watch?v=ogetBqMgau0

• These products compete not just for a share of the market, but also for a share of the mind…

Environmental Issues

• Canadian businesses must treat Canada’s land, air, and water with care and respect.

• Pollution controls, recycling laws, emission controls are some of the environmental protection measures in place.

• Many business find Canada’s environmental protection laws too expensive and thus move their businesses to a less regulated country. (Good for profit…. but missing the point?)

vs.

Political Issues

• Wars often occur because of natural resources. Thousands of people have been killed for the control of oil; others for control of the diamond trade.

• Trade in precious commodities can cause political alliances that do not contribute to the welfare of the people in in the trading nation.

• Instead, trade contributes only to the profit of the companies and countries doing business there.

• The Oil Sands?

Social Welfare Issues

• Safety Standards, Minimum Wages, Worker’s Compensation, & Health Coverage all add cost to Canadian businesses.

• Countries that do not maintain these standards are able to produce goods cheaper.

• http://video.google.com/videoplay?docid=-6733564947664645042

• Supporting trade by buying these products perpetuates the problem.

Average Chinese Worker’s Salary:

= approximately 75 Canadian cents / hour.

http://lifeafterchina.wordpress.com/2011/10/28/

another-day-in-the-land-of-cheap-labour/ • One thing is for certain – we the foreign masses

are not prepared to pay any more than minimum for our day to day products. While we trumpet about these kind of issues, ultimately, we’re still buying the products, and moreso, we bitch about hikes in price as they occur. The only real way to enforce change is by ceasing to buy the products of these companies that exploit the poor workers of countries such as China. But the day people cease buying iPhones and the like, is the day hell freezes over.

Activity

• Made in China – Good or Bad?– Where do you stand on the issue?

You will pick a side and together develop a list of:

i) reasons for your decision

ii) answers to the other side’s arguments

iii) solutions to any problems

You will write your list, neatly, on the chart paper provided.

Homework Activity

• i) List and briefly describe four benefits of trade.• ii) List and briefly describe four disadvantages to

trade.• Read the following article:• http://www.cbc.ca/news/canada/story/

2011/09/23/f-keystone-xl-pipeline-oilsands.html – Identify the five Ws in this news story– Make a list of Pros and Cons associated with the

development of the pipeline.– Where does this issue stand today?

If you are stuck…

• http://www.vancouversun.com/business/Lamphier+quick+guide+Keystone+pipeline+debate/6016354/story.html

• http://news.nationalpost.com/2012/01/18/obama-rejects-keystone-pipeline-open-to-alternative-route/

Your task….

• You are going to write an editorial / opinion piece on one of the following topics:– Made In China– The Keystone Pipeline– Fair Trade

• Your opinion should be backed up by facts, figures, and theoretical arguments…

Writing an Editorial (opinion piece)• Editorials have:

• Introduction, body and conclusion like other news stories

• An objective explanation of the issue, especially complex issues

• The opinions of the writer delivered in a professional manner. Good editorials engage issues, not personalities and refrain from name-calling or other petty tactics of persuasion.

• Arguments from the other side, which can then be refuted.

• Alternative solutions to the problem or issue being criticized. (Anyone can gripe about a problem, but a good editorial should take a pro-active approach to making the situation better by using constructive criticism and giving solutions.)

• A solid and concise conclusion that powerfully summarizes the writer's opinion. Give it some punch.

Your editorial…

• Must be between 200 and 250 words.

(No more, no less)

• May contain pictures / diagrams / charts

• Will be due at the start of class tomorrow (you will have today’s class to work on it.)

• Will be read to the class, by you.

• Must be emailed to [email protected] if you are not going to be at class!

Want a level 4? Make sure:

• This editorial is written with an interesting lead to bring the reader into the story.

• This story contains an abundant amount of background information about the issue.

• This article has a clearly stated opinion toward the beginning of the article.• This article contains at least 3 different, but logical reasons for the stated

opinion.• All of the reasons are written to convince the appropriate audience.• Each reason is written in a topic sentence of separate paragraphs.• The writer uses effective words throughout the article to make transitions

between ideas.• The ending of the story restates all the reasons in one sentence.• The writer ends the article giving at least 3 specific recommendations for the

reader to take action.• The writer uses all correct grammar and spelling.