The International Economy

The International Economy content area includes

• the reasons for individuals and businesses to specialize and trade;
• the rationale for specialization and trade across international borders; and
• the comparison of the benefits and costs of that specialization and resulting trade for consumers, producers, and governments.

Economically literate grade 12 students are able to explain how voluntary exchange, whether in a domestic or an international market, is undertaken because both parties in the exchange expect to benefit. Students can explain how they benefit themselves and others by developing special skills and strengths. They are able to negotiate exchanges and identify the gains to themselves and others.

Economically literate students can also

• compare the benefits and costs of policies that alter trade barriers between nations, such as tariffs and quotas;
• identify who bears those costs and who receives the benefits;
• explain why exchange rates change and can predict the effects of those changes on themselves and others; and
• explain how investment, technological change, education, and incentive structure contribute to differences in economic growth and standards of living among countries.