Economic Systems & Global Trade
Common Core – Science
Introduction
Economics studies how societies allocate scarce resources to satisfy unlimited wants. This unit explores different economic systems, key indicators, and the impact of globalization.
Economic Systems
• Traditional
• Market
• Command
• Mixed
Key Concepts
Supply & Demand
GDP
Inflation
Unemployment
Globalization
Trade
Outsourcing
Multinationals
WTO
1. Types of Economic Systems
Comparison Chart
| System | Control | Example |
|---|---|---|
| Traditional | Customs | Tribal societies |
| Market | Consumers | USA |
| Command | Government | North Korea |
| Mixed | Both | Most countries |
Circular Flow Model
2. Key Economic Indicators
GDP = C + I + G + (X – M)
GDP Components
Consumer Spending (C): 68% of US GDP
Investment (I): 18% of US GDP
Government (G): 17% of US GDP
Net Exports (X-M): -3% of US GDP
Inflation Calculator
3. Globalization & Trade
Trade Organizations
WTO (World Trade Organization):
164 member countries
Founded: 1995
EU (European Union):
27 member countries
Single market
USMCA (US-Mexico-Canada):
Replaced NAFTA in 2020
Global Trade Map
4. Economic Communication
Debate Topics
For classroom debates:
- “Globalization benefits all countries equally”
- “Universal basic income should replace traditional welfare”
- “Cryptocurrencies will replace national currencies”
Useful Phrases:
“The data suggests that…”
“Economic theory indicates…”
“Historical evidence shows…”
Presentation Skills
Effective economic presentations:
- Start with surprising statistics
- Use clear data visualizations
- Compare different perspectives
- End with actionable conclusions
