Curriculum Standards

National Economics Standard 5: Gain from Trade
Voluntary exchange occurs only when all participating parties expect to gain. This is true for trade among individuals or organizations within a nation, and usually among individuals or organizations in different nations. When imports are restricted by public policies, consumers pay higher prices and job opportunities and profits in exporting firms decrease.

National Economics Standard 6: Specialization and Trade
When individuals, regions, and nations specialize in what they can produce at the lowest cost and then trade with others, both production and consumption increase. Two factors that prompt international trade are international differences in the availability of productive resources and differences in relative prices. Transaction costs are costs (other than price) that are associated with the purchase of a good or service. When transaction costs decrease, trade increases.

Michigan Economics Standard IV.5 Trade
All students will describe how trade generates economic development and interdependence and analyze the resulting challenges and benefits for individuals, producers, and government. Explain how specialization, interdependence and economic development are related. Describe the effect of currency exchange, tariffs, quotas, and product standards on world trade and domestic economic activity.