Unit 2 10.2 Enlightenment & Revolutions Ms. Ramos Alta Loma High School.
Specialization & Interdependence Ms. Ramos Alta Loma High School.
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Transcript of Specialization & Interdependence Ms. Ramos Alta Loma High School.
Specialization & Interdependenc
eMs. Ramos
Alta Loma High School
How does specialization
lead to Economic Interdependence
?Ms. Ramos
How did people live 200 years ago?
Ms. Ramos
•They grew their own food, built their house, made their own tools & clothing, and performed many other tasks themselves.
Ms. Ramos
Specialization Improves Productivity
•Smith wrote about advantages of specialization–Division of labor
•As productivity increases, more G&S are available & standard of living increases
Ms. Ramos
•Need lg society to sustain
Ms. Ramos
Specialization Encourages Trade
• Don’t produce everything- need to trade
• “We trade with others because it frees up time and resources to do things that we are better at”
- Charles Wheelan
• Are we able to be self sufficient today?
Ms. Ramos
•Trade is a VOLUNTARY EXCHANGE
•Traditional economies- Barter•Market economies- money
Ms. Ramos
•Money is …–Useful when value generally accepted
–Easy to carry –Convenient for transactions
Ms. Ramos
Trade creates Economic Interdependence
•depend on others/ other countries
Ms. Ramos
http://www.shutterstock.com/pic-23004469/stock-photo-a-typical-american-hearty-breakfast.html
dullmensclub.com
http://www.shutterstock.com/pic-23004469/stock-photo-a-typical-american-hearty-breakfast.html
dullmensclub.com
Columbian Coffee
Florida Orange Juice
Idaho Potatoes
Iowa Eggs
Nebraska Pork
Kansas Wheat
•Smith & the Founders believed trade & econ interdependence were key to nation’s growth–Prob when states est trade barriers w/one another
–Difficult to develop national economy
Ms. Ramos
madmen.wikia.com
peoplequiz.com
Ms. Ramos
Not to worry!!!…. Commerce Clause Art. I, sec. 8 to the rescue“Congress shall have the Power…To regulate Commerce with foreign Nations, and among the several states”
Ms. Ramos