Interdependence and Specialization Back to the Middle Ages

Interdependence and Specialization

Back to the Middle Ages… • In the beginning of the year we said that a medieval manor was self-sufficient. What did that mean? Are we still that way?

Specialization • situation where an individual or a country concentrates on a specific skill or task.

Specialization • For example, teachers specialize in providing education. Teachers usually do not cut their own hair or repair their own cars. They depend on a hair stylist and a mechanic for these services.

Interdependence • one country depending on other countries to get the goods and services they need or want.

Florida Strawberries French Wheat Columbian Coffee Canadian Pork Iowa Eggs • Consider a typical “American” breakfast. A single U. S farm doesn’t grow all the necessary ingredients. So what do we do? • We trade with other states and even other countries to get what we need and want.

• Give an example of interdependence from our study of Medieval Africa.

• Can we think of any other examples of interdependence in the world today?

International Trade • Imports: goods purchased from another country

• Exports: goods sold to another country

Tariffs • A tax that is added to an imported good or service. • This makes goods from other countries more expensive that those made in the United States. • Higher prices on imports leads to an increase in profits for domestic producers (people who make goods in the US).

Quotas • Limits set on the quantity of a good that a country may import. Quotas reduce the quantity supplied of the import and cause price increases.

Embargoes • An order that forbids a country to trade with another country. • Embargoes are often placed by the leader or President of a country. • Penalties for violating the embargoes are high. Embargoes can also be placed against a certain good or industry such as rough diamonds, narcotics, or weapons. Cuba is a country where the U. S. has a longstanding embargo.

Embargoes- Good or Bad?

Subsidies • Payments to producers for making or selling a certain good. For example, the government might pay farmers extra to plant corn. Or, they might pay them NOT to grow wheat.

Product Regulations • Laws that regulate production, manufacturing, transportation, or packaging of goods. These laws are meant to protect human, plant, and animal health.