Post your 3 favorite margin notes from this chapter. Why did you highlight and comment on these particular points in the text? (I know some of you don’t take notes as you read – just jot down three things that you found interesting in the chapter and why.)
Trade Balance – value of a nations exports minus the imports. I’m starting to wonder how important this is. We seem to make a big deal about it as nationalists seem to want us to make all of our goods in the USA. I think it’s good we use the global trade networks for our advantage and focus our job creations on higher education level jobs.
Closed Economy – an economy that does not interact with other economies in the world. I have a tough time thinking about this concept unless just to simplify the discussions of economics. Every economy seems to trade with someone. Even North Korea trades with China. Does the concept of a closed economy even exist in our world? I guess there could be some island country in the pacific that doesn’t trade.
Real Exchange Rate – the rate at which a person can trade the goods and services of one country for the goods and services of another. We see the nominal exchange rate’s when we got to exchange money on international trips. But this doesn’t always display the real exchange rate. The price of bread, and milk, and beer in USA vs Mexico can be different than the nominal exchange rate. The price of steak in a Caribbean island country can be much different than in the USA. The price of rice in Asian could be much different than USA.
Dude.World 