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SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

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SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4
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Page 1: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

SPECIALIZATION, TRADE, AND INTERDEPENDENCE

Lesson 4

Page 2: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

Part 1

Specialization

Page 3: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Uneven Distribution of the Factors of Production

The factors of production- land, labor, capital, and entrepreneurship- are not spread evenly around the world.

Page 4: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Uneven Distribution of the Factors of Production

Different parts of the world have different climates, different soils and landforms, different bodies of water, and different mineral resources. These differences

are not limited to natural resources.

Different areas also have people with different training, education, and experiences as well.

Page 5: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Uneven Distribution of the Factors of Production

Ancient Egypt, for example, had many important mineral resources. These resources

included copper, tin, gold, and iron.

Egypt’s copper and tin were used to make bronze.

Page 6: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Uneven Distribution of the Factors of Production

Later, Egyptians used their iron ore to make iron tools and weapons. Gold was used for

decoration and became a form of wealth.

Other places in the Mediterranean region did not have the same mineral resources that Egypt possessed.

Page 7: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

Specialization

Even in ancient times, the uneven distribution of both natural and human resources around the world encouraged specialization. Specialization is the making of only some

types of goods and services. Each region began making more of certain

types of goods based on the productive resources it had available. These specialized products were then traded

with others to obtain other goods.

Page 8: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

Specialization

For example, the ancient Greeks lived on rocky hillsides that received plenty of sunshine. They could grow grapes and olive trees,

but not much wheat. They crushed their olives to produce olive

oil for cooking, eating, and using as skin lotion; they crushed their grapes and turned the juice into wine.

Page 9: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

Specialization

The Greeks also became skilled at making clay pottery.

The ancient Egyptians, on the other hand, lived along the banks of the Nile. They were able to

grow wheat on the flat, fertile lands alongside the river.

Page 10: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

Advantages to Specialization Economists see several important

advantages to such specialization. Each region can take advantage of its own

productive resources. A region may have fertile soil and a mild

climate that is suitable for growing particular crops.

By specializing in the production of these crops, farmers take advantage of these local characteristics.

Page 11: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

Advantages to Specialization As a result, each region tends to produce

those goods and services it can make at the lowest opportunity cost. It sacrifices less labor and time to make

those goods than it would to make their other goods.

Page 12: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

Advantages to Specialization By providing just a few kinds of goods

or services, producers in a region become more skilled at making them. Producers also learn how to make these

goods faster and more efficiently. For example, producers in a region might invest

in special tools and training to produce these goods.

This helps to lower production costs even further.

Page 13: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

Part 2

Trade

Page 14: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

How Specialization Encourages Trade

Because regions specialize, they rarely produce everything they need. Instead, different regions depend on one

another to supply many goods and services. They exchange these goods and services Merchants bring goods from one place to

another, and then sell them in markets. Countries and regions thus export products

they make and import from others.

Page 15: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

How Specialization Encourages Trade

There are many examples in history that illustrate how specialization leads to trade between regions.

ImportsGoods from foreign

countries brought into a country for use or

sale.

ExportsGoods and services

sold from one country to other countries.

Page 16: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

How Specialization Encourages Trade- The Maya

The ancient Maya, for example, inhabited the Yucatan Peninsula in Mexico. The salt beds that lined

the coast of the Yucatan provided salt to the Maya. Salt is an important

ingredient in the human diet.

In addition to salt, the Maya had obsidian (volcanic glass), cacao, seashells, and pottery.

Page 17: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

How Specialization Encourages Trade- The Maya

They exported these goods to their neighbors in the central lowlands of Guatemala. The city-states of Tikal and Copan served

as major trading centers. In return, these Guatemalan city-states

gave the Mayan their turquoise, jade, and quetzal (bird) feathers--- goods greatly valued by the Maya as symbols of wealth and status.

Page 18: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

How Specialization Encourages Trade- Ancient Egypt and Greece

Because the Egyptians could grow large amounts of wheat, they could exchange their surplus grain with other Mediterranean peoples, such as the Greeks, for olives, wine, and pottery.

It was easier for the Greeks to exchange their olives, wine and pottery for Egyptian grain than it was for them to grow their own wheat on the rocky hillsides of Greece.

It was also possible for these peoples to ship their products easily, since they could be carried by boat across the Mediterranean Sea

Page 19: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

How Specialization Encourages Trade- Roman Empire

The ancient Romans also engaged in extensive trade. Like the Greeks, the Romans shipped goods

across the Mediterranean . They exported olive oil and wine from the

hillsides of Italy. Sicily and North Africa grew wheat, which

was shipped to Rome.

Page 20: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

How Specialization Encourages Trade- Roman Empire

Romans also obtained marble from Greece, gold and silver from Spain, and iron from Britain.

The Romans even traded along overland routes across the steppes, deserts, and mountains of Central Asia in order to obtain cotton and spices from India and silk from Han China.

Page 21: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Effects of World Trade

The need to exchange goods led to the development of trade and distinct trade patterns between peoples very early in human history.

Page 22: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

Trade Routes

Because of geographical factors, trade has often proceed along certain fixed routes--- usually along rivers, across seas, and through valleys and plains. In contrast, mountains, deserts, and dense

forests often act as barriers to trade.

Page 23: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

Trade Routes

Trade routes usually connect places with different resources or center of population. The Mediterranean Sea and the Silk

Road across central Asia are two examples of trade routes

Later, the Atlantic Ocean provided routes linking , Europe, Africa, and the Americas.

Page 24: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

Trade Routes

Merchants are people who buy goods to sell to others at a higher price. They risk their money to order goods they

think others may want. Merchants often pay to ship goods along

trade routes from one place to another in order to sell these goods at a higher price.

Page 25: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Growth of Cities

The establishment of specific trade routes has often led to the growth and development of cities. Cities arise where goods are sold or where

goods are unloaded to be placed onto a different type of transportation.

Page 26: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Growth of Cities- Examples Alexandria

Located where the Nile River flows into the Mediterranean Sea, became an important Egyptian port.

Merchants gathered to trade goods with merchants arriving from other places around the Mediterranean. They traded spices,

textiles (cloth and clothing), silver, gold, and foods.

Because merchants living in Alexandria needed food, clothing, homes and other goods, they provided work to local craftsmen. This encouraged

the city to grow.

Page 27: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Growth of Cities- Constantinople

Another famous city that developed along trade routes. Located on the Black Sea, where Europe

meets Asia. Traders between these two continents crossed

through this city. Here, merchants exchanged European goods

for Chinese silks and Asian spices.

Page 28: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Growth of Cities- Venice

Like other cities in Italy, Venice was situated along major trade routes for East-West trade.

During the Crusades, merchants in Venice built large fleets to carry Crusaders to the Holy Land. These same fleets were later used to open

new markets in the Middle East.

Page 29: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Growth of Cities- Timbuktu Arose in West Africa north of the Niger

River, on the southern edge of the Sahara. The city was an important center for the

gold-salt trade. Arab traders crossed the desert to bring salt,

cloth and horses. In exchange, they received gold and slaves.

Under Mansa Musa, the city became a center of learning.

Page 30: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Growth of Cities- European Colonial Empires and Trade

After the European conquest of the Americas, trade routes shifted and cities closer to the Atlantic grew.

Several countries established colonies in the “New World.” Spain, Portugal, Holland, France, and

Britain are located in the western end of Europe and benefited from the rise in Atlantic trade.

Page 31: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Growth of Cities- European Colonial Empires and Trade

Cities like Lisbon in Portugal, Seville in Spain, and Amsterdam in Holland grew quickly. Merchants exchanged slaves from Africa,

precious metals (silver and gold) from Mexico, sugar cane, fur, tobacco, rice and indigo (a blue dye), from the Americas, and furniture, clothes, and foodstuffs from Europe.

Page 32: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

Part 3

Interdependence

Page 33: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Interdependence of Regions Over time, specialization and trade

have made different regions of the world increasingly interdependent. Regions become interdependent when

they depend on each other to obtain goods and services to meet their economic needs.

Page 34: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Interdependence of Regions

In ancient times, areas bordering the Mediterranean grew interdependent through trade.

Under Roman rule, goods were shipped back and forth across the Mediterranean or carried to different parts of the empire along roads built by the Romans. After the fall of Rome, long-distance trade declined.

Page 35: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Interdependence of Regions By the end of the Middle Ages, trade

had revived and goods from the Middle East, India, and China found their way into the fairs and markets of Europe.

Page 36: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Interdependence of Regions In 1492, the European encounter with

the Americas greatly stimulated the rise of long-distance trade, specialization, and the interdependence of regions. New food products like the potato spread

from its origins in the Andes Mtns. across the ocean to Portugal and Spain. From there, the potato spread to other

countries in Europe, and finally, to all regions and continents.

Page 37: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Interdependence of Regions Sugar provides another important

example of the interdependence of regions. Most sugar is produced from sugar cane---

a plant that only grows in warm, humid, climates.

Sugar cane was first grown in India. From there it spread to the Mediterranean.

Page 38: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Interdependence of Regions After the conquest of the Americas,

Europeans set up sugar plantations in the West Indies and South America. Enslaved Africans were sent to the

Americas to work on these plantations

Page 39: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Interdependence of Regions In the 1500’s, sugar was still a luxury

good consumed only by kings. By 1700, it had become a widespread

household good, sold in street markets. The production of such large quantities of

sugar only became possible because of specialization and trade.

Page 40: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Interdependence of Regions- Triangular Trade

Plantations in the Caribbean grew sugar cane for export. European ships carried this sugar to

Europe. Meanwhile, foods from the English colonies

in North America were sent to workers on the plantations

Page 41: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

The Interdependence of Regions- Triangular Trade

Enslaved Africans were shipped across the Atlantic to provide an unending supply of labor. The plantation owners imported furniture

and clothes from Europe in exchange for the sugar.

To produce large quantities of sugar, these different regions of the world had thus grown highly interdependent.

Page 42: SPECIALIZATION, TRADE, AND INTERDEPENDENCE Lesson 4.

Triangular Trade


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