Session
2 — Absolute
Advantage and Comparative Advantage
Case Study 13.2mWI "Wisconsin and the World Economy"
Directions: Complete the following case study and record your answers on a separate sheet of paper.
Topic: The role of Wisconsin in the U.S. economy and how it then interacts with the world economy.
Objective: A discussion of the impact of Wisconsin's industrial base on its region, its population and its economy. Wisconsin has changed with the U.S. and world economy, once a rural state but today increasingly urban, once a base of production but today increasingly high technology.
| Key Terms: | agriculture | export |
| business | import | |
| economy | industry | |
| Careers: | economist | political scientist |
| Web Site Links: | http://www.state.wi.us/ | |
| http://www.travelwisconsin.com/d2k/servlet/internet.Intro | ||
CS Question #1: How does Wisconsin connect to the world economy?
Wisconsin's economic strengths lie in its diversity of industries. The four
major economic enterprises of the state are manufacturing, agriculture, tourism
and shipping. Wisconsin largely manufactures durable goods such as clothing,
books, plastics and packaging. In times of economical fluctuation, Wisconsin's
manufacturing sector turns to processing agricultural and forest raw materials,
largely for the production of paper. Wisconsin is tied to its region for a number
of factors. Most of the consumers of goods produced in Wisconsin are in bordering
states or overseas. The raw materials processed in Wisconsin are largely imported
into the state. Other than a few power plants, Wisconsin's power supply is largely
outside of its borders. These factors have kept Wisconsin in close harmony with
its region.
CS Question #2: How does Wisconsin connect to its region?
Wisconsin has also been in close harmony with the national economy. One example
has been the demographic shifts of Wisconsin's population. Less then a hundred
years ago, Wisconsin was a state with a large rural population. As Wisconsin
became an important manufacturing and shipping center, its population moved
to urban areas where the jobs were growing. As the U.S. economy grew, so did
the economy of Wisconsin. Wisconsin has remained diverse as well and is among
the top fourth of U.S. state economies. Its impact on the U.S. economy is large
since it serves as such a manufacturing base for the rest of the country. Many
of Wisconsin's products are also traded overseas, adding to its impact on the
U.S. economy?
CS Question #3: How does Wisconsin connect to the U.S. economy?
Tourism in Wisconsin is a more recent development but now accounts for much
of the state's income, especially in the service industry. Wisconsin's Division
of Tourism Development has worked hard to create media support of tourism in
the state. Wisconsin has some 117,000 acres of state parks and millions of acres
of National Forests. Its location on the Great Lakes also drives tourism as
people flock to see the ocean-like shores of Lake Superior.
CS Question #4: How does tourism affect the Wisconsin economy?
Further Thought: