- -   AGRICULTURE CORE CURRICULUM  - -

(CLF1000)  Advanced Core Cluster:   AGRICULTURAL BUSINESS MANAGEMENT

  (CLF1450)   Unit Title:  MARKETING

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  (CLf1456)   Topic:  INTRODUCTION TO                Time        Year(s) 
                      WORLD TRADE                    1 hour        3/4        
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         Topic Objectives:  Upon completion of this lesson, the
         student will be able to:

         Learning Outcome #:

           (M-10)  - Describe the basic principles underlying the 
                     international agriculture market.

           (M-11)  - Become familiar with agricultural marketing terminology.

         Special Materials and Equipment: Copy of Handout #1 attached for each
                     member of the class

         References:..Cramer, J. L., &  Jensen  C.W. (1988).   AGRICULTURAL
                        ECONOMICS AND  AGRIBUSINESS (4th ed.).  New York, NY:
                        J. Wiley & Sons.

                     "Windows on the World; Images of 
                     Interdependence", FFA Leaders Guide

         Resources:  CULTUGRAMS.  Cultural brieffings for 102 countries.
                     Include statistics, customs, manners, maps, and addresses
                     of embassies and tourist offices.  Available from:
                     Brigham Young University, Kennedy Center for
                     International Studies, Publication Services, 280 HRCB,
                     Provo, Utah  84602 (801)378-6528.

         Evaluation: Quiz by instructor

TOPIC PRESENTATION:  INTRODUCTION TO WORLD TRADE

A.  No country is completely self-sufficient, producing all that it needs and 
    using all that it produces.  In today's complex society, most countries 
    buy commodities they don't make themselves, and sell commodities they 
    produce in excess of their own needs.  Most nations are both exporting and 
    importing nations.

    1.  Exporting nations are countries that produce commodities in excess of 
        their own needs sell are commodities to other countries. 

    2.  Importing nations are countries that need commodities they cannot 
        supply for themselves and buy the United States is both an importing 
        and an exporting nation.or trade for those commodities with other 
        countries  For example,.

        a.  Examples of U.S. imports are petroleum and raw materials such as 
            copper and rubber that are used in industry.

        b.  Examples of U.S. exports are agricultural products such as 
            wheat, almonds, walnuts, apples; also high tech commodities such
            as computer parts and military weapons. 


        c.  When a countries export the same overall value as they import,
            they are said to have a balance of trade.  Debts are accrued when 
            countries import a greater value of products than they export. 

B.  Trading, buying, or selling a commodity internationally is not 
    a simple process, because many factors complicate world trade. 

    1.  Political Climate - When two countries have a political dispute this 
        often affects their trade relations.  An embargo is an order of a 
        government prohibiting the sale of a particular commodity to a 
        particular country.

        a.  Examp