Summary: Although globalization (trade and development) tend to make people better off on average, the benefits normally do not accrue equally to everyone. Some groups benefit more than others, creating economic inequality. Today we will begin to study this problem, focusing specifically on the effects that free trade and migration have on it.
Inquiry Question: How do free trade agreements and migration influence development?
You should have replied to two of your classmates on Flipgrid, agreeing with one and disagreeing with the other.
Lecture: Lecture on the free trade agreements, migration, and inequality. We will watch these videos. I will explain and answer questions.
Specific Factors Model (4:06)
Factor Price Equalization (5:26)
The Heckscher-Ohlin Theorem (8:02)
Economics of Offshoring (8:36)
Tariffs and Growth in the 19th Century - import substitution (5:39)
Introduction to NAFTA (4:46)
Read: Chapter 19 of Core Economics. Make at least two annotations using hypothes.is. One should be an annotation that relates to today's inquiry question. The other should be a link to an article that relates to a passage in the reading.
Required: Finish the reading and annotations if you did not complete that in class.
Optional: Watch the first 7 chapters of this documentary (Commanding Heights Episode 3).
Chapter 1: Prologue (0:00:00)
Chapter 2: Global Idea (0:06:15)
Chapter 3: NAFTA : The First Test (0:10:06)
Chapter 4: Crossing Borders (0:15:49)
Chapter 5: The Global Market (0:19:02)
Chapter 6: Emerging Market Hunters (0:22:50)
Chapter 7: Averting a Meltdown: 1994 (0:27:50)