Content Standard 5: Trade

Grade 8 Benchmark

7. Voluntary exchange among people or organizations gives people a broader range of choices in buying goods and services.

Content Standard 6: Specialization

Grade 12 Benchmarks

1. Individuals and nations have a comparative advantage in the production of goods or services if they can produce a product at a lower opportunity cost than other individuals or nations.

2. International trade stems mainly from factors that confer comparative advantage, including international differences in the availability of productive resources and differences in relative prices.

Content Standard 7: Markets and Prices

Grade 8 Benchmark

5. An exchange rate is the price of one nation’s currency in terms of another nation’s currency. Like other prices, exchange rates are determined by the forces of supply and demand. Foreign exchange markets allocate international currencies.

Grade 12 Benchmark

5. When the exchange rate between two currencies changes, the relative prices of the goods and services traded among countries using those currencies change; as a result, some groups game and others lose.