Hey, can we go to the Nike store? I want to buy some shoes.
That's because that shirt was made in China.
What?! I thought these clothes were made over here.
Hey! How come on the tag it says, "Made in China"?
It's how many companies make money and it's a very big part of the economy.
Not all clothes are made here. Sometimes big companies like Nike, make their clothes in countries like China, so they can pay less money.
What is the economy?
Economy is how money moves from one place to another.
Then the store will use that money to pay for other stuff like giving money to the people that work here and where it bought this stuff from.
We are buying shoes today, so our money will go to the store.
Since the clothes and shoes here are made in China, the people that made them in China will also get some of the money.
Economy: How a country manages its money.
Also, these shoes cost $50, why are we paying more for them?
So if we didn't have an economy, I wouldn't be able to buy these shoes?
We are paying more because of something called a tax. Taxes are money that the government collects to pay for things like our garbage collection, healthcare and schools. It can also be called a "tariff".
That's right! The economy helps us to trade with other countries for things that we don't have. We also give other countries some of the stuff that we have and they don't, like wood.
Tariffs are extra money we pay to bring things into the country and to send them to a different one. So Nike had to pay a tariff to bring these shoes from China.
I don't like that we have to pay extra for the shoes. But I'm happy that the government is using it for so many things that helps us.
That is true! Without the global economy we wouldn't have a lot of stuff. Especially those shoes !