F2F Class Notes (Jacob)
Homework
Continue to prepare for trade war discussion. If you have time, look into Elon musk.
Vocabulary
Trade Surplus – export more then you import
Trade Deficit – Import more then you export
Subsidies – money given from the government to companies, factories, etc
eg. The Chinese government subsidizing Chinese companies is a big problem for free market economies.
eg Subsides are fine to give to companies but should not be given for only certain products.
Tariff – a tax on certain imported goods
Property – something that is owned by an individual or company
Intellectual property – the creator of an idea is entitled to produce/profit from it (for a certain time limit, often 5-10 years)
Knock off – a fake product that copies some original product
Retaliation – to do something back that someone has done to you (often an attack), similar to a response
Self made man – someone who has earned everything himself
Entrepreneur – someone who starts their own business
Innovative – create something new that others have not or use something in a new way
Speaking exercise
Original
The trade between China and America is not equal. America imports from china then China imports from America. Workers salaries is lower then in America. The fee of renting a factory is lower then in America. These companies choose the lower cost side cheaper country to produce in. Higher cost countries have to import products from the countries which have the lowest/er cost. It makes a trade surplus for lower cost countries. To develop the economy some governments give subsidies to companies in China. I think trade war is not only related to economy, sometimes it is related to politics.
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