Title: Unit 12: Trade Curriculum Alignment (Teacher Only)
Course: Alabama Economics Sample Syllabus > Section: Unit 12: Trade

12. Explain why individuals, businesses, and governments trade goods and services in the global economy.

• Defining absolute advantage and comparative advantage
• Explaining how gains from trade, whether between two individuals or two countries, are based on the principle of comparative advantage
• Defining exchange rates
• Explaining how changes in exchange rates impact purchasing powers of individuals and businesses
• Explaining tariffs, quotas, embargoes, standards, and subsidies as trade barriers
• Explaining why countries sometimes impose trade barriers and sometimes advocate free trade