is it important to interact with others? For
one thing, you don't have to be lonely! But interaction is far more
important than just chatting and having fun. The world interacts to spur
new ideas, make more of what we like, and get better at doing that. Today,
the world is much smaller than what it was, say, 200 years ago. No, the
world didn't literally shrink, but with how connected the world is now, it
feels as if the distances are much, much shorter.
now have phones, cars, planes, televisions, computers, and even the
Internet! Just imagine the things that have allowed us to bridge the gaps
of continents in the last centuries! While you might be reading this from
your home, school, or office, someone else might be reading the same page
from China, India, Russia, or Iceland!
how does TRADE fit into all of
Just consider this example: Say
your favorite cars were Mercedes-Benz and Ferrari, but you live in the
United States. Unfortunately, Mercedes is a German-based company, and
Ferraris come from Italy! Is it impossible for you to have such luxury
cars? Of course not! Germany, Italy, and the United States trade
so Americans can have access to German and Italian markets
(cars, fruits, furniture, etc.), and Germans and Italians can buy from
the United States as well. Without trade, we wouldn't see Mercedes,
Ferraris, Porsches, BMWs, Toyotas, Hondas, or any other foreign cars in
the United States, or any other country that was not home to those
that example only brushes the surface of trade. In the Trade, Trade, Trade!
section, we'll cover three major ideas about trade, and why it's so
important. We then sum it all
up in our Globalization section! If
you're ready to get started on some trade-frenzy, read on!
of the most important and significant aspects of trade is that trading
allows us to do our best. It's pretty easy to see how this is important
because everyone doing their best is best for society as a whole.
why does this happen? That's an excellent question, indeed!
Well, first of all, trading is just giving something you have for
something someone else has. To trade, both parties (you and the other
person) must agree on the trade.
example would be if you had two nickels and your friend had a dime. You
could trade your two nickels for your friend's dime if both of you
agreed that that was a fair trade. In the real world, things are a bit
more complicated, but the same idea applies: the more value there is in
your offer, the more you'll get in return. Say you had three nickels in
the example above. Now, you may not want to trade with your friend for
the dime because your three nickels is worth MORE than the one
the same logic, if you do what you are BEST at doing, what you
"produce" will have the most value. Hence, you can trade it
and get more in return. Moreover, if you are better at doing something
than someone else, then you are more efficient
than they are. For example, if you can make 5 coats and 2 buttons a day,
but your friend can only make 3 coats and 3 buttons a day, then you
should do all the coat-making and your friend should do the
button-making! Doing that will maximize your output and you will be both
doing what you are best at doing.
When the world trades, each
nation produces what they are best at producing; hence, each
nation also gets the most value in return. In other words, trading
makes nations wealthier. As a result, the
citizens have higher living standards: better health, better technology,
better education, better resources!
our first lesson conludes that...
trade, people live better, are healthier, have better education, and are
better off all around by doing what they are best at!
wait! There's more! Click NEXT to continue!