Activity+of+the+videos

Activity of the videos

** Activity of the video 1 ** ** Part 1 ** **What is** **the main idea of the video at the top?** The global exchange, free trade and protectionism.


 * What is the main point of each of these segments? **

In the first segment the main idea is that international trade increase the economic of the nation and genera growth of the nation that trade. In the second segment the main idea is the increase in the value export of Taiwan, Uganda, Brazil, South Korea, etc. Finally in the second segment too talking about of the pattern of trade. ** Part 2 ** ** Read the list of questions below and make notes while you listen to the audio. **      ** What figures (data, numbers) does the narrator give to show the increase in International trade during the 35 year period from 1970 to 2004? ** The value world export of goods and services increase of 0.4 tn $ in 1970 to 10.8 tn $ for 2004.


 * What countries have gained economic growth through international trade? **

China

** What is the pattern of trade described by the narrator? **  The international Trade performed between developed countries mainly.

High-tech goods and Basic staples/textiles.
 * What are the two types of approaches to trade named by the narrator? **
 * What countries are given as examples of countries following this trade? **

Taiwan, Uganda, Brazil, South Korea.

** Global economics, global exchange 2: ** ** Video outline. **

**On section 1 (0:02 – 1:55)**


 * Main idea:** Reasons why specialization and trade are beneficial for a country

Comparative advantage: Emphasizing differences in countries resources and productivity levels. Economy of scale is when production gets more efficient and lowest the cost per unit of output.
 * Key concepts:**

iron || **On section 2 (1:57 – 3:06)**
 * Example**
 * **Countries** ||  **Products**  ||  **Reasons for specialization**  ||
 * Pakistan || Rice grow mangos || Warm weather ||
 * Sweden || Paper and steel || Cold weather, forests and
 * Main idea:** Comparative advantage based on countries having a lower opportunity cost.
 * Key concepts:**

Opportunity cost: Forgone opportunity to produce another good

An example of opportunity cost is what you would have done with the $10 spended on the cd, it could be have been invested in buying a shirt o going out for dinner. Complete the chart with the corresponding information.

10  ||  20  ||  a per of jeans is 2 cars ||
 * **Country** ||  **No. jeans produced**  ||  **No. cars produced**  ||  **Opportunity cost**  ||
 * America ||
 * China ||  6  ||  6  || a per of jeans is one car ||

America has a comparative advantage in automobiles China has a comparative advantage in the production of jeans

**On section 3 (3:08 – 4:49)**


 * Main idea:** In what consist Pattern of trade
 * Key concepts**:

Hechscher and Ohlin theory of what determines relative labour productivity


 * Major factors in labour productivity are:**

1. Skills of the workers 2. The machinery the workers have to use 3. Organization of the firm


 * Example:**

**(Example)** ||  **Type of workforce:**  ||  **Type of industry:**  || **Example of product** ||
 * **Type of country:**
 * Industrialized Countries || Skilled || capital intensive || Automobiles and high tech products ||
 * Less Industrialized Countries || Unskilled || Labour intensive || Textiles and basics staples ||