Lesson Four

Specialization and Interdependence

The Economy of Michigan Unit Two:

The BIG Ideas We can’t produce everything we need or want, so people trade

to get things.

People, states, and countries specialize in producing certain goods and services.

The more people, states, and countries specialize and trade, the more interdependent they become.

Trade is important to the economy of Michigan.

Michigan exports goods like cars to other places.

Michigan imports goods like computers and bananas from other places.

As a teacher, do I provide goods or services?

What kind of services do I provide?

Do you think I made my clothes and shoes? Why or why not?

What economic term relates to the idea that people produce certain kinds of goods and services but not others?

specialization

when individuals, regions, and countries produce certain kinds of goods or services  Example: Specialization results in people producing fewer goods and services than they consume.

How do I get the goods I don’t produce like my clothes and my shoes?

People trade to get the goods and services they do not produce.

In most, cases they trade money for the goods and services.

trade

to exchange one thing for another   Example: People often trade money for goods.

What Happens When People Specialize?

People use _________________________ to produce

___________________ and ______________________ BUT Resources are ____________________ AND Human wants are

____________________Which creates ________________________

because of SCARCITY people have to make___________________________

They make choices about what goods and services they will produce. This is called ________________________________ Because people SPECIALIZE they have to get the goods and services they do

not produce through ___________________ which makes people more

_______________________________________________

What Happens When People Specialize?

People use _________________________ to produce

___________________ and ______________________ BUT Resources are ____________________ AND Human wants are

____________________Which creates ________________________

because of SCARCITY people have to make___________________________

They make choices about what goods and services they will produce. This is called ________________________________ Because people SPECIALIZE they have to get the goods and services they do

not produce through ___________________ which makes people more

_______________________________________________

RESOURCES

GOODS SERVICES

LIMITED

UNLIMITED SCARCITY

SPECIALIZATION

CHOICES

TRADE

INTERDEPENDENT

interdependence

when people are dependent on other people in order to get the things they do not produce  Example: When people specialize they become more interdependent.

Pancakes, Pancakes!By: Eric Carle

Jack Rooster

Mother Donkey

Wheat Sickle

Flour Miller

Mill Water

Waterwheel Millstone

Bag Egg

HenCow

PailMilk

Butter Churn Fire

Cream Butter

Wood Strawberry

Cellar Bowl

Cup Ladle

Frying Pan Plate

Fork Ax

Trees Woodshed

Hen House Stool

Do you have a human, natural, or capital resource?

A web will be made which demonstrates how Jack was dependent upon or needed all the resources for his pancakes.

interdependence

when people are dependent on other people in order to get the things they do not produce  Example: When people specialize they become more interdependent.

How are you dependent on other people to meet your needs or wants.

In order to have flour, we go to the grocery store and buy it.

In order to do that, we need or are dependent on farmers to grow the wheat, trucks and drivers to take the wheat from the farm to a factory where workers turn it into flour.

Flour needs to be placed into packages, and drivers take the packages of flour to warehouses in trucks.

Workers load trucks to take the flour from the warehouses to the stores where clerks place the flour on shelves in stores.

People then can go to the store and buy the flour.

What did the folder game teach you about Michigan and specialization?

The game demonstrated how different areas of Michigan specialize in different kinds of products.

Which region of Michigan produces oranges? Oranges don’t grow anywhere in Michigan. The oranges need a warm climate to grow well.

Oranges grow well in states like Florida where

the climate is much warmer. How are we able to buy oranges in Michigan

when they are grown in Florida. Oranges are available in Michigan through

trade with states that specialize in oranges. Apples grown in Michigan are sold in states

that do not grow them too

Can you recall any examples from the book, Pancakes, Pancakes! of people specializing?

The miller makes flour, Jack’s mom made strawberry preserves.

States Specialize!Following Directions Activity

1. Using the United States Map shade in the following state on your outline map:

Michigan California Idaho FloridaKansas

 2. Cut out the agricultural products on this sheet.3. Glue the cherries on Michigan4. Glue the strawberries on California5. Glue the potatoes on Idaho6. Glue the oranges on Florida.7. Glue the wheat on Kansas8. Draw an arrow between each of the four states and Michigan.

Follow the directions on the Activity sheet carefully in order to create a map illustrating trade between states.

If Florida only supplies oranges to Michigan. The map arrows created only show one trade between the 2 states; it is a simple view of interdependence and specialization.

In reality, Florida trades oranges to every state in the United States.

If we had to show all of these trades, the map would end up looking much like the web they created for the Pancakes, Pancakes! activity.

Do you find anything unusual about the box?

The unusual writing on the box and

explain that this writing represents Chinese writing.

Why would a box of Kellogg’s Cornflakes have Chinese

writing?

The box illustrates how Michigan trades not

only with other states but with other

countries as well.

China is quickly becoming an important trading partner of Michigan but it is not the country with which Michigan trades the most.

Predict which country is Michigan’s leading trading partner. Canada is Michigan’s leading trading partner.

How does proximity affects trade?

If Canada is Michigan’s number one trade partner because it is our closest neighbor, what country do you think is Michigan’s number two trade partner?

Mexico is the country closest to Michigan after Canada and that Mexico is Michigan’s second leading trading partner.

Your task: Go on a search at home for products from other countries and record their findings on the chart.

Products produced in many different countries can be found in Michigan.

Looking for Imports

PRODUCT WHERE DID IT COME FROM?

Looking for Imports

PRODUCT WHERE DID IT COME FROM?

economic activities

different ways people use resources and produce goods and services.  Example: Farming and mining are economic activities.

export

a good that people in one place send out to people in another place when they trade  Example: Cars are an important Michigan export.

import

a good that people in one place bring in from another place when they trade  Example: Bananas are a Michigan import.