Explanation should include a definition of supply (the products/services a business is willing and able to produce) and demand (the amount of products/services a consumer is willing to purchase) and apply these forces to international trade (e.g., their relation to pricing decisions, strong and weak currencies, varying exchange rates, and the stability of various countries' overall economic systems).
Process/Skill Questions:
- How are supply and demand related?
- How does competition affect supply and demand?
- How does the cost of production affect supply and demand?
- How does the availability of resources affect supply and demand?
- How does technology affect supply and demand?
- How do geographical, political/legal, social/cultural, and economic factors affect supply and demand?
- How do you determine market price/equilibrium?
- How does price affect supply and demand?
- How do changes in the value of currency affect international trade?
- How can a country’s economic system affect supply and demand?
- What are some of the effects of supply and demand on consumers?
- What are some of the effects of supply and demand on businesses?