• 1. Identify four major cities around the world which are known for international trade. Choose cities in different countries and  that export products of different types: i.e., food products,  technology products, textile products, mineral products, mechanical or electric products, or others. 
• 2. Describe why each city gained prominence in export/import.  Explain the export products for which it is known. If possible,   identify the time period in which that export gained prominence, i.e., hand crafts and leather products may have been exported in the 17th Century, wines may be exported from a region that developed prominence in wine export centuries ago, while the Industrial Revolution contributed to export prominence of automobile manufacture and products related to automobiles.
• 3. Describe each city’s access to the inputs of production: land, labor, capital, and technology.
• 4. Describe the kind of advantage (absolute or comparative) that allows each city to trade effectively.

Handout B-1.

Define for the students that land includes such factors as climate, topography, location, access, natural resources, water, and value-- value in terms of opportunity cost.  Opportunity cost is the loss of that factor to more profitable use--such as using land for farms versus using the same land for industrial development. Discuss the cost involved in using land for industrial development without consideration or concern for environmental pollution, protection of wildlife, and health concerns.

Labor is explained as an available work force, but the work force must have the education needed for the level of production planned, they must have available housing, schools, stores, and communities. Labor must be evaluated in terms of cultural acceptance, work ethic, standards of living, and other community values.

Capital is the financial input. The entrepreneur might invest personal money, or financial backing might come from other sources.  Multinational corporations, franchising, licensing, joint ventures, local subsidiaries, or total foreign ownership are some alternatives. These will be discussed in a later section.

The input called technology is harder to define. Simply put, is the technological advancement of the country sufficient to support the planned production? Are the markets for that production technologically ready for that product? Has the technology been developed to support the production?

• 1. As a team project, ask students to identify on the world map, ten major international trading cities/areas, and choose four to research.
• 2. Describe the produce traded, how it is produced,       how it is transported, what its end use might be.
• 3. Describe the work force.  What is the necessary educational level of workers in the work force? What cultural influences have helped shape the work force?
• 4. Has the climate or geographical location influenced   the production? What disadvantages have been  created by the topography?
• 5. Where has financial backing for industries in this city/area come from?
• 6. What is the future for products from this city/area?