APS SS Grade 6

Specialization of Trade

When regions and/or countries specialize, global trade occurs.

Study of specialization begins in grade five as students study the reasons individuals and societies specialize in the production of goods and services. Sixth-grade students build on the understanding that the limited availability of productive resources leads to specialization as they study how and why specialization leads to trade on a global scale.When regions and/or countries specialize in the production of a limited number of goods and services, they must trade to obtain goods and services they want but do not or cannot produce.Students can investigate examples of trade within the Eastern Hemisphere and globally, tracking the production and sale of goods and services using economic data. For example, students can use economic data to discuss the production and consumption of oil, agricultural products (e.g., coffee, soybeans) or manufactured items (e.g., toys, clothing).

• Learning Goal– When regions and/or countries specialize, global trade occurs.

• Learning Target:– Students will be able to identify why regions specialize and

the impact on global trade.

• Student Objective– Given descriptors of two countries students will be able to

determine what each country should specialize in and how it will impact global trade with 100% accuracy.

What do you want to specialize in when you grow up?

Don’t worry…..you have plenty of time to figure this out!

BUT…..What characteristics should you consider when deciding what to specialize in?

Countries or regions do something like this when deciding what goods or services specialize in.

How does a Country or a region decide on what good or service specialize in?

• What are the characteristics that need to be considered?

Productive resources (also known as factors of production):Natural Resource:• Rich farm land, minerals, fuels, fish,

timber, etc.Labor (level of training/education)• High, Medium, Low, MixedCapital:• Money or tools used to make a profitEntrepreneurship:• Risk taking and/or managing a

business venture.

Example: The Banana

Ever wonder where Banana’s come from?

The types of jobs are: low skill/low wage

Pickers have to go out and pick bananas by hand.

Bananas need sorted and prepped for shipping

Local Farmers sell Bananas in local markets

Banana Plantations make WAY too much for the local market

Where do you think countries or regions send the bananas?

Why do they send them there?

What kinds of countries grow bananas?Natural Resources: Soil, sunlight, temperature (tropical climate…so banana trees

can grow). Bananas are perishable.

Labor: Growing and picking Bananas do not require lots of skill, but it is hard work!Lower skilled workers (do not know how to operate complex machines, computer programs, most have less school than high school education).

Capital: Small Banana farms require almost no capital. Banana plantations do require lots of capital to get started (especially for shipping).Capital might include: money for land, workers, shipping.

Entrepreneurship Small local Banana farms require very little entrepreneurship or risk. Banana plantations require huge amounts of risk because bananas are perishable and need shipped.

Where should a country export bananas to?

• Who WANTS or NEEDS bananas?

• What do Banana producing Nations need?

• Example: Costa Rica• http://atlas.media.mit.edu/profile/country/cri/