Question

type your response in the box.

as you read this scenario, consider the effect that international trade has had on kiras experiences. then answer the question that follows.

kira is excited that the outfit she saw on a british website is now available in her local mall in kansas city. she stops to get gas on the way to buy the outfit. the gas station she stops at is owned by a foreign company. kira is glad that she bought the outfit because her father tells her the family is going out for dinner that evening. theyre going to celebrate his company getting a contract to export equipment worth $2 million to a company in africa. however, during dinner, kira gets a text from a friend who is upset because her mother just found out shes going to lose her job at the local steel mill when production moves to a country in asia.

list all the ways that kira is affected by trade in this scenario.

Explanation:

Identify imported goods

Kira benefits from Global Trade as a consumer by purchasing an imported outfit. The outfit was designed or sold by a British website but is available locally.

Identify foreign investment

Kira buys gasoline from a station owned by a foreign company, showing how international investment affects local retail.

Identify export benefits

Kira's family benefits financially because her father's company secured a $2 million contract to export equipment to Africa.

Identify negative domestic impacts

Kira's friend is negatively affected because her mother is losing her job due to offshoring, as local steel production moves to Asia.

Answer:

Based on the scenario, Kira is affected by international trade in the following ways:

1. Access to Imports (Consumer Benefit): She is able to buy an outfit locally in Kansas City that she originally saw on a British website.
2. Foreign Direct Investment: She purchases gasoline from a gas station that is owned by a foreign company.
3. Export Opportunities (Family Income): Her family's household income and stability are supported because her father's company won a $2 million contract to export equipment to Africa.
4. Domestic Job Loss (Indirect Social Impact): Her friend is personally hurt because her mother is losing her job at the local steel mill due to production moving to Asia (offshoring).