In this unique Capitol Hill Campus course, Dr. Antony Davies of Duquesne University conducted an interactive “economic experiment”, to demonstrate firsthand how individuals and markets relate.

1. The Fundamentals of Trade Capitol Hill Campus May 21, 2010 copies of this presentation can be found at www.antolin-davies.com

2. Protectionist Assumption : Trade leads to a centralization of political power, decreased competition, and the concentration of wealth. Free Trade Assumption : Trade leads to a decentralization of political power, increased competition, and the dissemination of wealth.

3. Source: International Financial Statistics , International Monetary Fund, December 2001 Greater per-capita trade is associated with greater per-capita income.

4. Source: International Financial Statistics , International Monetary Fund, December 2001, and Measuring Income Inequality: A New Database , Deininger, Klaus, and Lyn Squire, World Bank, 2002 Greater per-capita trade appears to be a necessary condition for more equitable income distributions…

5. Source: International Financial Statistics , International Monetary Fund, December 2001, and Measuring Income Inequality: A New Database , Deininger, Klaus, and Lyn Squire, World Bank, 2002 … and this also appears to hold among the poorest countries. Thailand Lithuania Fiji Ukraine

6. Greater per-capita trade is associated with greater caloric intake. recommended Source: International Financial Statistics , International Monetary Fund, December 2001, and World Development Indicators , World Bank, 2002

7. Source: International Financial Statistics , International Monetary Fund, December 2001, and Human Development Report , United Nations Development Programme, 2002 GDI measures quality of life (longevity, education, literacy, income) for women relative to men. Greater per-capita trade is associated with greater gender equality.

8. Source: International Financial Statistics , International Monetary Fund, December 2001, and World Development Indicators , World Bank, 2002 Greater per-capita trade is associated with reduced child labor.

9. Source: International Financial Statistics , International Monetary Fund, December 2001, and World Development Indicators , World Bank, 2002 Even among middle-lower and lower income countries, greater per-capita trade is associated with reduced child labor.

10. Source: Bureau of Labor Statistics, and Bureau of Economic Analysis Greater per-capita trade is associated with reduced unemployment. U.S. Unemployment Rate U.S. Trade On average, a 1 percentage point increase in trade is associated with a ½ percentage point reduction in unemployment.

11. Source: Bureau of Labor Statistics, and Bureau of Economic Analysis Greater per-capita trade is associated with increased real wages. U.S. Trade U.S. Average Real Hourly Earnings (2000$) On average, a 1 percentage point increase in trade is associated with a $0.25 per hour increase in real wages.