One of the coolest examples of international trade is China’s use of pandas as a tool for encouraging international trade. While the pandas (and their eventual cubs) may come with a hefty fee, the majority of these pandas accompany major international trade deals that countries sign with China. This quick explainer video outlines the way China uses pandas to their advantage.
Dr. Friedman discusses the benefits of free trade and the inconsistencies of placing tariffs and quotas on the steel industry in order to increase domestic production. He notes (around the 2:00 minute mark) that allowing for free trade would reduce employment in one sector of the economy, but it would increase employment in other sectors.
Thanks to Jacob Clifford for the suggestion!
With the recent stretch of tariffs being imposed on other countries (and other countries on us), Jimmy Kimmel uses some of his showtime to interview 2nd graders about the trade deficits. The basis of the segment comes from Trump’s misguided tweet regarding trade deficits and why a trade war won’t hurt the US:
Shiloh, our 2nd grader, explains the pros and cons of international trade, including the potential for lost jobs in the US and unsafe working conditions abroad. She also highlights the pros of trade by noting countries are able to buy more things, create jobs in exporting industries, and bring countries together.
Thanks to Abdullah Al-Bahrani for the post!
One of the many benefits of international trade is increased product variety because countries can devote resources to the goods they have a comparative advantage in. Monty Python demonstrates what a world without trade would look like. After going through a list of a variety of different types of cheese (even cheddar!), but nothing is available. The finest cheese shop is at least clean!
The Easter Bunny Is Comin’ to Town (1977) is a classic kids’ claymation film. In this clip, Sunny talks about how trade is necessary for Kidtown!
Thanks to James Tierney for the clip and description!
In this commercial, office workers are lamenting the apparent weakness of the dollar relative to other currencies. Another worker comes by with a hamburger from McDonald’s $1 menu and the office changes their tunes when they realize that a dollar can buy a whole hamburger.
What does the world look like (wealth and health) over the past 200 years, but squeezed into 4 minutes. Hans Rosling looks at the change in a income and life expectancy for countries across the world over the past 200 years. What’s nice about this visualization is that it’s color coded to be able to show how different regions changed over time. We can also see how globalization has affected major countries like China, Japan, and India.
A few years back there was a popular video of a human powered ferris wheel in India. I use that clip to talk about labor abundance in the Heckscher–Ohlin model of trade since India is so labor-abundant. Earlier we came across this fantastic video of a construction site in Thailand (another labor rich country). For small construction jobs, the workers will use manpower (literally) instead of machines to drive piles into the ground. This clip could also be used in a labor economics setting if you’re talking about substitutes in production. Either way, this is a fun-video for class with a pretty nice beat from the tambourine-wielding foreman.
Sir Harold Evans, the author of They Made America, describes how the shipping container revolutions international trade and made it easier to ship products around the world. This TED Talk could be used when discussing comparative advantage and trade or even when thinking about factors that have led to the growth of countries.