Nations with different economic systems often specialize and become interdependent as a result of international trade. This trade is affected by national efforts to encourage or discourage the exchange of commodities, exchange rates, and the flow of international investment. As markets extend beyond political borders, it is essential for American citizens to develop an understanding of international trade in order to make effective choices in allocating their own resources.

The complexity of the standard will increase at each succeeding grade cluster:

• K-3: Students will understand that the exchange of goods and services around the world creates economic interdependence between people in different places.
  
  
• 4-5: Students will demonstrate how international trade links countries around the world and can improve the economic welfare of nations.
  
  
• 6-8: Students will examine how nations with different economic systems specialize and become interdependent through trade and how government policies allow either free or restricted trade.
  
  
• 9-12: Students will analyze and interpret the influence of the distribution of the world's resources, political stability, national efforts to encourage or discourage trade, and the flow of investment on patterns of international trade.