Global Trade

Since the beginning of time, man has traded.

During this web quest you will explore and learn:

· How world trade is structured

· Who controls trade

· What economic terms are connected to trade

· How trade got structured the way it is

· What the benefits and disadvantages are to trading with other countries

· And finally, should we trade?

The Task: To become knowledgeable about trade, your teacher will assign partners to work through the trade issues in Activities 1 through 4. You and your partner will discuss Global Trade as you move through this assignment. In Activity 5 you will read about current U.S. trade policy. Individually you will be responsible for a short paper which tells the reader why you support the U.S. having trade partners or why you are against the idea.

Materials Needed: You will need your notebooks and a pen or pencil, a worksheet for Activity 4 from your teacher and your economics text.

Activity 1: What is Trade? – Click on this link to answer the following questions in your notes:

What is trade?
Describe the structure of world trade.
How is trade different for developed countries vs. developing countries?
View Maps: Trade Flows. Describe the pattern of trade flow from the United States to the world and back. Who does the U.S. trade with most and least? From the map, can you determine why?

Activity 2: Coming to Terms – Click on this link to define the following in your notes:

1. Absolute advantage

2. Comparative advantage

3. Trade barriers

4. Trade alliances

5. Open economy

You will type the terms in the search box. Remember to read the definitions carefully and then translate the definition in your own words in your notebooks.

Activity 3: Post WWII Trade Rationale – We won’t take a trip back to the stone-age when Flintstone traded Rubble a rock for a Brontosaurus Burger. But let’s take a look at one of the first trade agreements. With your partner:

Define GATT and how it was supposed to work.

What is MFN and how does it work?

What happened in Doha in 2002?

Describe the difficulty the United States has working with GATT and the WTO.

Take notes on these questions. It should prove helpful to support your final project.

Activity 4: Trade Barriers – With your partner, take a look at the site below and choose 3 countries from different regions of the world and list some of the various barriers they use to prevent the United States from trading with them. Each member of the partnership should complete a worksheet.

USTR - 2004 National Trade Estimate Report on Foreign Trade Barriers

Activity 5: Why should we trade?

Benefits of a Global Free Trade Alliance – View this article describing the benefits of a GFTA and who would benefit immediately and who would be penalized for having restrictive trade regulations aimed at a GFTA member.

Free & Fair Trade - A Commerce Department Report - What has your government done for you? The link below describes the Bush Administrations position with trade agreements it has made over the last 4 years and some intended for completion during the next term.

Why should we trade? Write a response which should include 1-2 arguments FOR and AGAINST global trade for the US or a trading partner. Then...come to a decision and DEFEND your choice --using the terms from the activity.

Your response should be no longer than 2 pages double spaced 12 pt. font using 1 inch margins.

Scoring Rubric: Your work will be judged using the following rubric:

	1	2	3
Notes (Activities 1-3)	Notes not taken at all	Notes missing details, terms not well defined	Complete notes, terms clearly defined
Trade Barriers Worksheet	No notes taken on countries. No trade barriers listed.	Lack of variety in countries chosen, barriers not listed	Clearly evaluated trade barriers from 3 countries from 3 different regions of the world
Paper	Less than the specified length, only puts forth one side of the trade issue, and does not defend choice.	Has the arguments for/against as specified, but they are not well developed and did not choose a side and defend it.	Clearly states at least one argument for and against trade and defends with sound reasoning and the use of economic terms from the lesson.

Conclusion: From this activity students should gain awareness of U.S. Trade Policy and what helps the trade process and what can hurt the process. This information will empower them to decide whether they are for or against trade with foreign nations. The student will see the current U.S. trade situation and decide if we need to trade more or less.