About This Chapter
Factors in International Trade - Chapter Summary
In this chapter, our instructors explain the importance of global trade and the role and advantages of the global market. You'll also see examples of comparative advantage and learn about the benefits of specialization and exchange and gaining from trade. Tarifs and trade restrictions, including the Hawley-Smoot Tariff of 1930, are also discussed in these engaging lessons.
Additionally, you can learn about the regulations and restrictions that apply to international trade and the advantages and disadvantages of trade protectionism. There are also lessons on state sovereignty in world politics and the impact and expansion of the global economy. The final chapters cover international trade organizations, foreign currency and exchange rates to round out this chapter. After reviewing all the lessons in this chapter, you should be able to:
- Define and give examples of comparative advantage
- Understand the importance and role of the global market
- Articulate the benefits of specialization
- Understand trade regulations and restrictions
- Explain the concept of economic globalization
- Comprehend supply and demand in the foreign currency exchange
Our professional instructors use these short, engaging video lessons to assist your comprehension and understanding of the material. Lesson transcripts are available with each video, and self-assessment quizzes ensure retention of the material. You can revisit main points of the lesson using video tags to jump directly to those moments in the video.
1. The Importance of the Global Market and Global Trade: Role & Advantages
We all need resources, products and service to live and thrive. Sometimes these things are not readily available locally. In this lesson, you'll learn about the importance of international trade and globalization in fulfilling our needs and wants.
2. Comparative Advantage: Definition and Examples
Understand the definition of comparative advantage, using two goods as an example. This key lesson incorporates the basic foundations of economics into one foundational theory explaining what goods and services that people,and nations, should produce and for whom they should produce it.
3. Comparative Advantage, Specialization & Exchange
Companies and individuals are often faced with the question of, 'What should we do?' This lesson examines comparative advantage, a valuable economic concept that helps firms and people determine how to focus their efforts.
4. Gains From Trade and the Benefit of Specialization
Explore one of the most widely accepted ideas in economics - the idea that nations benefit from specialization and exchange, reaping gains from trade.
5. Hawley-Smoot Tariff of 1930: Definition & Overview
As the U.S. sank deeper into the economic abyss of the Great Depression, Congress passed the Hawley-Smoot Tariff. Widely considered a disaster, read about the tariff and quiz yourself.
6. Trade Restrictions from the Great Depression to Today
How nations trade is an integral part of their diplomatic relationship. In this lesson, we'll talk about how trade restrictions have impacted and defined American international presence over the last 80 years.
7. International Trade Regulations & Restrictions
Importing and exporting are vital elements to a healthy U.S. economy. Businesses should be familiar with international laws regarding trade. This lesson defines imports and exports and discusses international trade regulations and restrictions.
8. Advantages and Disadvantages of Trade Protectionism
Countries want to win the game of international trade by exporting more than they import. Some countries pursue trade protectionism to do this. In this lesson, you'll learn about the advantages and disadvantages of this strategy and related concepts.
9. Sovereignty in World Politics
The primary players in international politics are sovereign states. In this lesson, you'll learn about the concept of state sovereignty in the international system and related concepts. You'll also have an opportunity to take a short quiz.
10. The Global Economy: Advantages, Expansion & Impact
This lesson will explain the concept of economic globalization. We will look at both its positive and negative effects while also highlighting the terms 'import,' 'export,' and 'capital flight.'
11. International Trade Organizations and Trade Agreements
International trade organizations and trade agreements have enormous power in the global trade environment. In this lesson, you will learn about the roles of the GATT, NAFTA, and the World Trade Organization.
12. Foreign Currency Exchange: Supply and Demand for Currency
In this lesson, you'll learn why money from different countries has different values of exchange. We'll cover the supply and demand for currencies and how changes in supply and demand can affect the exchange rates between currencies.
13. Exchange Rates & Currency Conversion
After watching this video lesson, you will learn how currency conversion works. You will be able to convert from one currency to another with ease. Learn the process behind currency conversion.
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Other chapters within the CSET Social Science Subtest III (116): Practice & Study Guide course
- About the CSET Social Science Test
- Early Influences on American Government
- Constitutional Democracy in the United States
- Overview of American Law
- Principles of American Democracy
- Religion and Religious Diversity
- Principles of Civil Society
- The Three Branches of Government
- Supreme Court Cases
- Election Process
- Levels of Government in the U.S.
- Mass Media in the United States
- Political Systems
- Tension in American Democracy
- Economic Terms and Concepts
- American Market Economy
- Politics and Economics
- U.S. Labor Unions
- U.S. Labor Market
- Aggregate Economic Behavior
- California History
- Sources of Information in Social Science
- Historical Interpretations
- Social Science Research
- Social Science Perspectives
- CSET Social Science Subtest 3 Flashcards