Social Studies - 2017-18

GOVT.12c - Relationship of Virginia and the United States to the Global Economy

The student will apply social science skills to understand the role of the United States in a changing world by 

c) examining the relationship of Virginia and the United States to the global economy, including trends in international trade.

Adopted: 2015

BIG IDEAS

UNDERSTANDING THE STANDARD

The economies of Virginia and the United States depend on resources and markets around the world for the production and sale of goods and services. 

ESSENTIALS

Virginia and United States businesses have become multinational in their quest for resources, markets, and profits. 

In recent decades, the national government has worked to reduce barriers to international trade: 

 Free trade increases worldwide material standards of living. 

 The gains from free trade are not distributed equally, and some individuals or groups may lose more than they gain when trade barriers are reduced. 

 Despite mutual benefits from trade among people in different countries, many nations employ trade barriers to restrict free trade for national defense reasons, to protect key individuals, or because some companies and workers are hurt by free trade. 

United States trade agreements 

 North American Free Trade Agreement (NAFTA): A free-trade zone of Canada, Mexico, and the United States intended to eliminate trade barriers, promote fair competition, and increase investment opportunities. 

 World Trade Organization (WTO): Established in 1995. Its role is administering trade agreements, handling disputes, and providing a venue for negotiating among its member nations.

KEY VOCABULARY

Updated: May 17, 2017