Buy American

Where was I made?

United States

Honduras

Thailand

Haiti

China

Bangladesh

Taiwan

Brazil

Buy American

Why should people in the United States buy American made products?

At least three sentences.

Why Buy?

Guess Where

Revealed…

Debrief

1. Why do so many of you purchase foreign made goods? What was

your incentive for buying from foreign producers?

2. If you are using American-made products, what was your incentive for

purchasing them?

3. Did your purchase of foreign- made goods make our country better or worse off?

So Many Goods-So Many Places

Absolute and Comparative Advantage

Lets meet……..

Absolute Advantage

Barbie Ken

Cooking

Cleaning

Time

10 Min. 40 Min.

20 Min. 30 Min.

Who takes the least amount of time to do

their work ?

30 Min. 70 Min.

Barbie has an absolute advantage in cooking and cleaning.

Remember opportunity cost?

4/3 or 1&1/3 Cleaning

Cooking

Cleaning 2 Meals

Comparative AdvantageBarbie Ken

Cooking 10 min. 40 min.

Cleaning 20 min. 30 min. Opportunity Cost of Doing a Job

½ Cleaning

¾ Meal

When Barbie decides to clean, how many meals is she giving

up?

When Ken cooks, what dose he give

up?Barbie has the comparative advantage in cooking.

Ken has the comparative advantage in cleaning.

Comparative AdvantageBarbie Ken

Cooking 10 min. 40 min.

Cleaning 20 min. 30 min. 30 min. 70 min.

AFTER SPECIALIZING IN ONE JOB!

Ken = cleans (2) rooms in 60 min. and saves 10min.

Barbie = cooks (2) meal in 20 min. and saves 10 min.

*Specialization allows Barbie and Ken more time to engage in more productive behavior! (and fight less)