Social Studies - 2019-20
CE.12f - Virginia and the Global Economy
The student will apply social science skills to understand the United States economy by
f) analyzing the relationship of Virginia and the United States to the global economy, with emphasis on the impact of technological innovations.
UNDERSTANDING THE STANDARD
Virginia and the United States pursue international trade in order to increase wealth.
Term to know
global economy: Worldwide markets in which the buying and selling of goods and services by all individuals, nations, and businesses takes place
Reasons that states and nations trade
To obtain goods and services they cannot produce or cannot produce efficiently themselves
To buy goods and services at a lower cost or a lower opportunity cost
To sell goods and services to other countries
To create jobs
Virginia and the United States specialize in the production of certain goods and services, which promotes efficiency and growth.
Impact of technological innovations
Innovations in technology (e.g., the Internet) contribute to the global flow of information, capital, goods, and services.
The use of such technology also lowers the cost of production.