Important Terms and Definitions

Commodity: an article of trade or commerce, especially a product as distinguished from a service; something of use, advantage, or value; any unprocessed or partially processed good, as grain, fruits, and vegetables, or precious metals.

Resource: a source of supply, support, or aid, especially one that can be readily drawn upon when needed; the collective wealth of a country or its means of producing wealth; money, or any property that can be converted into money; assets.

Trade: the act or process of buying, selling, or exchanging commodities, at either wholesale or retail, within a country or between countries

Trade Balance: is the difference between a country's imports and its exports.
Balance of trade is the largest component of a country's balance of payments.
Debit items include imports, foreign aid, domestic spending abroad and domestic investments abroad.
Credit items include exports, foreign spending in the domestic economy and foreign investments in the domestic economy.
A country has a trade deficit if it imports more than it exports; the opposite scenario is a trade surplus.
(http://www.investopedia.com/terms/b/bot.asp)

Definitions from: http://dictionary.reference.com/

Synthesis and Assessment

For the final application of this theme to our class, we will choose as a class between two simulations. Please read the descriptions below and be prepared to vote in class on which simulation to move forward with.

Option 1: Participate in a historically-based trade simulation: Each student will be assigned a role as a Southern plantation owner, Northern merchant, English merchant, or Chinese trader. You will be provided with resources to help you assume this role and play your part. We will then participate together in conversations about trade in and around the colonies. You may be a Southern plantation owner that needs to advocate for the import of more slave labor, you may be a Northern merchant who is trying to decide how to industrialize.

Option 2: A modern application of concepts simulation: With this option, you will each become a trader in a "global" (classroom) marketplace. You will each select a commodity that you will trade with your peers. You will need to select a commodity/good and submit it to me for review before the Market Day. You will need to analyze the good and tell me what elements are involved in the production of your good and where you will receive these pieces. For example, you may choose lemonade as your good. Lemonade is made up of lemons (or lemonade mix), sugar, and water. Answer questions regarding where you will get these goods, how easy or difficult (or expensive) they are to acquire, etc. I will review your good and either approve it, or ask you to try again with something else. We will hold the Market Day during class time and you will spend the period trading with your peers to get different commodities. For example, you may choose to use pencils as your commodity, but two pencils may be needed to trade for one glass of lemonade. We will spend the following class period discussing how your experience in the marketplace does or does not mimic real life trade and marketplaces, as well as reviewing economic concepts covered earlier in the year.

Regardless of our choice as a class, there will be a short reflection assignment following the activity, that will depend slightly on which choice we make.

Current Events

Commodities, resources, and trade still shape our world today, even if it isn't as obvious.

Check out the news stories below that discuss how commodities and resources are still impacting our world:
Oil:
http://money.cnn.com/2016/02/11/investing/oil-crash-freak-out/index.html?iid=EL
http://money.cnn.com/2016/02/29/investing/oil-prices-surge-opec/index.html
http://www.resourceinvestor.com/2016/02/25/mansion-sales-and-discount-dining-oil-rout-hits-houstons-rich

International Trade and Manufacturing:
http://www.usnews.com/news/articles/2016-02-01/same-problems-different-day-for-us-manufacturing
http://americaneconomicalert.org/news_item.asp?NID=4767441 ("trade wars")

Application 4: California Gold Rush

In 1849, the United States experienced a different event closely related to commodities. Gold was discovered in California. Thousands of people traveled across the continent to attempt to get a crack at the gold. Gold has been a coveted commodity for thousands of years. Even Egyptian, Mayan, and other ancient cultures understood the value of gold as a means of trade. Gold was not easy for people to excavate and eventually most of the gold was too deep for the average miner to reach. However, there were lasting impacts of the Gold Rush on California. Specifically, the people who had traveled there to strike it rich, didn't tend to rush back home, they often settled in the area and by the 1860s California had a population of around 380,000 people. People even tried to make money by sharing their secrets to finding gold. Below is a newspaper article with the "secret art of finding mines."

People also utilized people's desire to get rich quick by charging money for quick transport to the "gold regions" of California. Check out the advertisement below. Would you pay to get to California faster and try to get your share of the gold?

Sources: 

http://www.history.com/topics/gold-rush-of-1849

Application 3: King Cotton and Slavery

One commodity that had major implications on the American colonies was cotton. Cotton was used to create textiles and other finished goods that were in high demand in England. The Southern colonies turned out to be a great place for growing and producing cotton. However, cotton was incredibly time and labor intensive; it was grueling and tedious. Due to this, it was nearly impossible to make a profit growing cotton. However, in 1793, Eli Whitney invented the cotton gin, which revolutionized cotton production and made it profitable. The cotton gin made it much faster to produce cotton which could then be used in manufactured goods made in England. The cotton gin made it possible for farmers to keep up with the demand for cotton that could now more quickly be turned in to fabric due to the invention of the power looms during the Industrial Revolution.

However, even with the cotton gin, cotton production still required a vast labor force. Enter: slaves. The market for slaves in the Southern colonies began to grow as cotton plantations grew and became more and more profitable. Ultimately, the use of slave labor would contribute to the Civil War in the United States.

Check out these links to see the correlation between the spread of cotton production and the spread of slavery.

Cotton: http://mappinghistory.uoregon.edu/english/US/US18-01.html 

Slavery: http://mappinghistory.uoregon.edu/english/US/US18-02.html

Comparison: http://mappinghistory.uoregon.edu/english/US/US18-03.html

Sources:
http://www.ushistory.org/us/27a.asp

Application 2: Colonial Resources

The 13 original colonies of British settlement in the New World were all located along the East coast of the modern day United States. However, due to their differences in location, they experienced different landscapes, climates, and overall conditions. These differences impacted what types of goods the colonies could produce. Look at the maps below that demonstrate some of the differences between the New England (North) Colonies, the Middle Colonies, and the Southern Colonies.

This differences in climates and resources led to major differences in the cultures of the colonies. For example, in the Northern or New England colonies, the goods they produced were much less labor intensive which impacted whether or not the colonies became dependent on slavery. This contrasts with the Southern colonies which produced tobacco and rice, both incredibly labor intensive resources.

Application 1: Triangle Trade

Triangle Trade, as a specific historical event that we are discussing, occurred primarily during early American history when America was still considered the "New World" and the colonies had begun to produce goods for consumption in Britain. The image below demonstrates how slaves were moved from Africa to the Americas to work on plantations where they produced resources such as sugar, tobacco, and cotton. These resources were used a raw materials for production into finished goods in Europe (specifically Britain). Then textiles, manufactured goods, and rum were imported into Africa from Britain. These goods were paid for with slaves that the European empires sent to the "New World" to yield more raw resources. 

This trade network was a little more complex than just three lines though. Check out the interactive map below to see how other goods and resources were traded around the world.

https://www.eduplace.com/kids/socsci/books/applications/imaps/maps/g5s_u3/