Welcome to Our Elementary Economics for Third Grade Homeschool Social Studies Course

Course Sample for Our Elementary Economics for Third Grade Homeschool Social Studies Course

Weeks One-Three: International Trade

Have you ever traded with a friend? Maybe you know someone who has traded a lollipop or piece of candy for a cool pencil. This is an example of bartering. Bartering is trading without the use of money. In order to properly barter with someone, both people need to have something the other person wants, and they have to be of equal value to both parties. This week, we are going to learn about international trade. This is how the United States of America and other countries trade goods and services all over the world.

International trading between countries can yield many benefits. It can help economically poor countries prosper as well as help wealthy countries get the resources they need. Sometimes countries decide to make a trade when they do not have the resources or the ability to fulfill their needs and/or wants. Remember a need is something we must have to survive, and a want is something we would like to have, but can live without.

Many times, a country that is very wealthy may have limited or scarce resources and a country that is economically poor may have an abundance of scarce resources. Can you see where a trade can be negotiated?

Due to the growing number of people in the world and, oftentimes, our “unlimited” wants, we can cause scarcity to become an economic problem. When an item is scarce, it is in very limited quantities, meaning there is only a small amount, and then it is gone. When this happens, those items or resources become more expensive to buy. Coal, petroleum, and even water can be scarce.

International trade has been going on for thousands of years. Nowadays, international trade is responsible for much of the growth and success of our modern world! Goods and services are imported internationally for many reasons. They may be cheaper or better quality than what that country can produce. Another reason for international trade can be that some goods may be more desirable than the local goods. Have you ever eaten a mango or papaya from your local grocery store? Many of these fruits are imported to us from Mexico.

Another reason for international trade is that a country may not have any other option and the good or service they want does not exist in their country. For example, Japan has no oil reserves in their country. This is a big deal, especially since Japan is the fourth-largest consumer of oil in the world! All the oil they consume has to be imported from other countries.

International trade has many benefits to a country. Trade encourages a country to specialize in producing the goods and or services they can make effectively. Creating a specialized good or service means a country can produce more volume of a product, which allows them to make more money for their economy when they trade. When we trade internationally, it increases competition, which lowers prices. Think about it this way: There are many stores that sell skateboards. Because of this, they all must keep their prices low in order to sell. If one store sells the exact same skateboard for $50.00 more than another store, the store selling the skateboard for $50.00 more will likely not stay in business long.

Trading internationally can also produce more jobs for people to make a living. The quality of goods and services will increase as local monopolies (when one business controls the trade of a particular good or service) are eradicated. Having more countries offer the same goods and/or services will cause the goods and or services they produce to not only be at a lower price, but also to be higher quality. When we trade with other countries, we encourage each other to be imaginative and innovative as we share and create new technologies. International trade can help bring about prosperity, freedom, and even opportunity for each citizen.

Let’s talk more about what it means to import and export goods and services. When countries trade internationally, they are importing and exporting goods and services. If you owned your own business, importing and exporting could grow your business where you live and also internationally. When a business imports and exports goods and services, they must pay close attention to our laws and regulations in the US.

Any type of service, good, or resource that is made in one country and is sold to another country is called an import. If you own a business and you are looking to import a good or service into the US, you may need a license or permit depending on the specific item you are importing. In fact, some of the following items may require a special permit or license to import to the US: animals, prescription medications, food, and even trademarked items like name-brand shoes.

Now let’s switch gears to talk about some specific facts on exports. Goods and services a buyer in one country purchases from a seller in another country are called exports. Just like with imports, exports can greatly benefit a company’s business. Also, like imports, it is vital to know and understand the laws and regulations when exporting goods and services. Some items need special permits and or a license to export. Items like software and certain technologies require a special license to export.

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