TRADIN

G FAVORIT

ES

GRADES 7-1

2

Why would you consider trading something you have for something someone else has?

Why do countries trade with one another?

AN ABSOLUTE ADVANTAGE :

A county or countries that produce goods that other countries cannot produce themselves has an Absolute Advantage in trade.

A COMPARATIVE ADVANTAGE:

When one country can produce a product or service more efficiently than other countries, they hold a comparative advantage.

COMPETITIVE ADVANTAGE:

A market may be created based on a real or perceived advantage. Real differences may be difficult, if not impossible to detect. This perceived advantage gives a country a competitive advantage.

FACTORS THAT INFLUENCE TRADE

Climate and SeasonsEconomic reasonsGeographic proximityConsumer demandsCultural PracticesResource availabilityResearch and technologySevere natural and ecological

events

2011 Top Ten Agricultural Export Partners

1 Canada 18.9 Billion

2 China 18.8 Billion

3 Mexico 18.4 Billion

4 Japan 14.1 Billion

5 European Union-27 9.6 Billion

6 Korea, South 7.0 Billion

7 Taiwan 3.6 Billion

8 Hong Kong 3.3 Billion

9 Indonesia 2.8 Billion

10 Turkey 2.5 Billion

2011 TOP AGRICULTURAL IMPORT PARTNERS1 Canada 18.9 Billion

2 European Union-27 16.1 Billion

3 Mexico 15.8 Billion

4 Indonesia 4.3 Billion

5 Brazil 4.1 Billion

6 China 4.0 Billion

7 Australia 2.3 Billion

8 Chile 2.3 Billion

9 Colombia 2.3 Billion

10 New Zealand 2.0 Billion

TOP 25 EXPORT COMMODITIES/PROCESSING LEVEL1.Soybean Bulk

2.Corn Bulk

3.Wheat – unmilled Bulk

4.Cotton Ex Linter Bulk

5.Other Feeders & fodder Semi-processed

6.Pork Fresh/Frozen Processed HVP**

7.Beef & Veal Fresh/Frozen Processed HVP

8.Misc Horticulture Products Processed HVP

9.Chickens Fresh/Frozen Processed HVP

10.Other Grain Products Processed HVP

** HVP – High Value Product

TOP 25 EXPORT COMMODITIES/PROCESSING LEVEL

11.Soybean Meal Semi-processed HVP

12.Almonds Raw

13.Rice-Paddy Milled Bulk

14.Other Veg Oils/Waxes Semi-Processed HVP

15.Related Sugar Products Semi-processed

16.Essential Oils Processed HVP

17.Nonfat Dry Milk Processed HVP

18.Other Dairy Products Processed HVP

19.Seed Field/Garden Processed HVP

20.Beverages Excluding Juice Processed HVP

21.Other Veg Products Processed HVP

22.Soybean Oil Semi-Processed HVP

23.Wine Processed HVP

24.Chocolate Processed HVP

25.Bovine Hides – Whole Semi-Processed HVP