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- Describe how the flow of capital is affected by changes in net exports.
- Understand the relationship between financial markets and goods markets.
- Explain how tariffs and quotas affect imported goods and domestic prices.
- Learn how trade restrictions affect foreign labor.
1. Net Exports, Capital Flows and Trade Balance
Learn what net exports and balance of trade are, how they are calculated, and what influences them. Explore what capital flows are in relation to net exports and trade balance and the importance of these monies in an economy.
2. Financial Markets & Goods Markets
Learn about two of the biggest markets in most economies; the financial and goods markets. Find out what financial markets are and the purpose they serve. Explore the stock market and bond market and see how they are different than the goods market.
3. Tariffs and Quotas: Effects on Imported Goods and Domestic Prices
Explore what tariffs and quotas are and what effect they can have on the supply of imported goods. Find out how these two economic tactics can influence the prices you pay for many of the everyday items you may purchase.
4. Trade Restrictions and Foreign Labor
Discover why trade restrictions are sometimes used to combat cheap foreign labor. Learn about outsourcing, job protection, and infant industry strategies.
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