Hot Topic: Trade Wars – Economics Awakens
By Ninos Malek, May 2018
INTRODUCTION:
“Trade wars are good and easy to win.” ~President Donald Trump
“Wars make not a person great.” ~Jedi Master Yoda
Have you ever traded baseball cards or lunch items with a friend? What made you trade? If your friend has done something to irritate you, and you decide to punish him by saying: “This is war! I am not trading with you anymore!” is your friend the only one who will lose? In a war, there are winners and there are losers. We refer to that as a zero-sum game. However, when two individuals voluntarily trade, then both individuals are winning, or the trade would not have taken place. We refer to that as a positive-sum game.
So if trade is a positive-sum game and war is a zero-sum game, what about a “trade war”?
KEY CONCEPTS:
- International Trade
- Trade Barriers
- Balance of Trade
- Public Choice Theory
MATERIALS:
Download Trade Wars – Economics Awakens classroom materials.
- Essay (Student Reading)
- Student Handout
- Teacher Guide
RELATED CLASSROOM ACTIVITIES
Do Summer Programs Help With College Admissions?
On Point with the Executive Director Do Summer Programs Help With College Admission? In my role as Executive Director of…
FTE Staff Spotlight – Austin Green
FTE Mentor Teacher, high school teacher, adjunct professor, Chick-fil-A fanatic – there are many titles for Austin Green. As a…
Book Club Recap – Socialism Sucks: Two Economists Drink Their Way Through The Unfree World
Jamie Wagner is a Professor and Teaching Fellow with the Foundation for Teaching Economics, as well as an Associate Professor…