CITIZENSHIP IN THE WORLD MERIT BADGE
International Trade (Requirement 6) Worksheet

 

About This Worksheet

The "Citizenship in the World" class at Day of Merit 2004 will not be cover requirement 6 "in class." Scouts interested in finishing the badge at Day of Merit should bring a note from a troop leader stating that they have completed requirement 6 or a copy of this worksheet with answers to the questions written out in advance. Answers can be written on the backs of the worksheet pages or on blank paper. Short is OK÷a sentence or two, or a number where appropriate.

Scouts using this worksheet to complete requirement 6 are encouraged to work in groups (2-3 is ideal; 5 maximum) and turn in a single set of answers for the group. The names of all group members should be clearly listed.

If you have any questions, feel free to e-mail me: abvr@mindspring.com

A. Bowdoin ("Bow") Van Riper
Department of Social and International Studies, SPSU

 

A. Five Big Ideas

International Trade Agreement÷an agreement between two (or more) countries about economic issues. NAFTA÷the North American Free Trade Agreement÷is one example.

Question 1: Name two kinds of issues that International Trade Agreements might cover.

Foreign Exchange÷conversions of one country's currency into another, and adjustments of the value of one country's currency relative to another country's currency. If the U.S. dollar is "strong relative to another currency, you can exchange a dollar for more of the other currency than you can when the dollar is "weak."

Question 2: You're taking a vacation in another country. If your budget is tight, is it better to visit when the dollar is "strong" or "weak" with respect to the other country's currency? Why?

Balance of Payments÷the value of what a country imports (buys from other countries) vs. the value of what it exports (sells to other countries). The more work goes into something (usually) the more valuable it is. Example: furniture is worth more than plain boards, but boards are worth more than uncut logs.

Question 3: Which option (X or Y) will probably bring a country more money? Why?
X. Import raw materials, turn them into finished products, export the finished products
Y. Export raw materials, import finished products made in other countries

Bonus Question (optional): Why doesn't every country do (the option you chose)?

Tariffs÷taxes on imported foreign goods. Countries use tariffs to make imported goods more expensive than "domestic" one (that is, ones grown or made in the country itself). They hope that this will encourage their citizens to buy domestic goods.

Question 4: Why would the leaders of a country care if people buy foreign goods instead of domestic ones?

Free Trade÷trade between countries without barriers or restrictions . The European Union (EU) is one of the world's biggest free-trade zones. Companies in (say) France can sell their goods in (say) Italy or Germany without worrying about tariffs or other red tape. They can also buy and sell without changing currencies. On 1 January 2002 most of the EU countries began to use the same kind of currency: the Euro.

Question 5: What is one reason why the leaders of a country might want free trade? What is one reason why they might not want free trade?

 

B. International Trade and You

More and more of what Americans buy comes from foreign companies. More and more American companies sell more and more of their products abroad. Products sold by American companies, under their own labels (like Nike), are often made abroad by foreign workers. Products sold by foreign companies (like Toyota) are often made in the United States by American workers. "Globalization" is a shorthand word for those kinds of economic changes.

Question 6: Name an Atlanta-based company that sells its products or services abroad. What kinds of things to they sell?

Question 7: Name three things your family owns that were made in foreign countries or by foreign companies. What foreign countries did the things (or the companies) come from (hint: check the labels in clothes).

Bonus Question (optional): Ask your parents, leaders, or other adults whether there are foreign foods at your local Kroger or Publix that weren't around when they were kids. What are they?

 

C. Exchange Rates and Prices

If $1.00 in US currency equals: $2.00 (Australian) or 100 yen or 0.66 British pounds . . .

Question 8a: How much is a US quarter worth in Australia?

Question 8b: How much is 1 yen worth in the United States?

Question 8c: How many US dollars does it take to "buy" one British pound?

If a VCR costs $100 dollars in the US, and you're a Japanese tourist who has 30,000 yen . . . .

Question 9a: How many VCRs can you buy if 75 yen = $1.00

Question 9b: How many VCRs can you buy if 100 yen = $1.00

Question 9c: How many VCRs can you buy if 150 yen = $1.00

If a VCR costs $100 in the US or 10,000 yen in Japan . . .

Question 10a: Where are VCRs cheaper if it takes less than 100 yen to equal $1.00?

Question 10b: Where are VCRs cheaper if it takes exactly 100 yen to equal $1.00?

Question 10c: Where are VCRs cheaper if it takes more than 100 yen to equal $1.00?