Trade and the Global Economy

What does it mean for Australia to be part of the Asia region and the global economy?

Synopsis
In this unit of work, students explore what it means for Australia to be part of the Asia region and the global economy. Through study of contemporary issues,
events and case studies students consider the concept of economy in personal, local, national, regional, global contexts.

Students explore the history and nature of trade in global and national contexts, looking at patterns of global interdependence and consider ways in which
economies and economic actors are interconnected in a business and geographical context. Students consider their role as economic actors and the way that
engaging in business and economic activities in the contact of free trade can have a far reaching social and environmental impacts. Students consider and
explore ethical considerations in relation to case studies in the context of Australias relationship with Asia, justifying their opinions through informed research
and discussion. Students explore the Fair Trade movement and other social justice perspectives on trade.

Focus inquiry questions

What is trade and why do people trade?
Who are economic actors and what are their roles and responsibilities?
What is Australias economic relationship with Asia?
Who are the winners and losers of free trade?
What are the hidden costs of Globalization?






Link to AusVELS
DOMAINS: Economics/Business + Geography + ICT

Economics and Business
Economics and Business Knowledge and Understanding
Australia as an economy and its place within the broader Asia and global economy (ACHEK038)
Why and how participants in the global economy are dependent on each other (ACHEK039)

Economics and Business Skills
Apply economics and business knowledge, skills and concepts in familiar, new and hypothetical situations (ACHES047)
Analyse data and information in different formats to explain cause and effect relationships, make predictions and illustrate alternative perspectives (ACHES045)
Present reasoned arguments and evidence-based conclusions in a range of appropriate formats using economics and business conventions, language and concepts (ACHES048)
Reflect on the intended and unintended consequences of economic and business decisions (ACHES049)
Gather relevant and reliable data and information from a range of digital, online and print sources (ACHES044)
Develop questions and hypotheses about an economic or business issue or event, and plan and conduct an investigation (ACHES043)

Geography (Unit 2: Geographies of Interconnections)
Geographical Knowledge and Understanding
The ways that places and people are interconnected with other places through trade in goods and services, at all scales (ACHGK067)
The effects of the production and consumption of goods on places and environments throughout the world and including a country from North-East Asia (ACHGK068)

Geographical Inquiry and Skills
Present findings, arguments and explanations in a range of appropriate communication forms, selected for their effectiveness and to suit audience and purpose; using relevant geographical terminology,
and digital technologies as appropriate (ACHGS070)
Reflect on and evaluate the findings of the inquiry to propose individual and collective action in response to a contemporary geographical challenge, taking account of environmental, economic and social
considerations; and explain the predicted outcomes and consequences of their proposal (ACHGS071)

Information and communication technology (ICT)
In Economics and Business, students develop ICT capability when they access and use digital technologies as an investigative and creative tool. They locate, evaluate, research, plan, share and display data and/or
information. Using digital technologies, students create, communicate and present economics and business data and information for a variety of reasons and audiences.
CROSS CURRICULUM PRIORITIES

Asia
OI.5 - Collaboration and engagement with the peoples of Asia support effective regional and global citizenship.
OI.7 - Australians play a significant role in social, cultural, political and economic developments in the Asia region
GENERAL CAPABILITIES

Ethical understanding
In Economics and Business, students develop informed, ethical values and attitudes and become aware of their own roles, rights and responsibilities as participants in the economy. Students also develop an
understanding of the ethical considerations that may be involved in making economics and business decisions and their implications for individuals, society and the environment.

Intercultural understanding
In Economics and Business, students develop an understanding and appreciation of the different ways other countries respond to economic and business issues and events. They consider the effects of decisions
made by consumers, producers, businesses and governments in Australia on other countries, and the way decisions in other countries affect the Australian economy.

Unit Overview

Lesson Topic Activity Description / Methodology Resources

1 - 2

Introduction to Trade

What is trade?
What is the history of
trade?
Why do people trade?















Global interdependence
How are economies
interconnected?




Introduction to trade
Group discussion, what is trade, why do people trade?
Elicit prior knowledge from Ss.

The Trade Game
Activity: Students divide into groups of 4-6 and spread out around the classroom (A larger room
may be required depending on class size)
The aim of the game is to show students how trade actually works, who benefits and who loses. It
aims to help players understand clearly how trade affects a countrys prosperity.
As in the real world, groups will start the game with unequal quantities of resources (unknown to
students).
One Student is elected game leader, this person does not participate in the game but they have the
power to change the terms of trade and create new trading situations. Just another way the game
aims to emulate real world situations.

Class Discussion: Following the game, you will lead a discussion in which students reflect upon
their experiences and try to establish parallels within the real world. One topic that is sure to come
up is its not fair! so be sure to have real world parallels prepared as this realisation will provide
students invaluable insight into the world of trade.




Global Interdependence
Introduction: Ss examine their clothing/Where are they made?
Lead in for discussion around import/export.
Why do people trade? Scarcity.

Class discussion: Types of commodities/resources:
Write terms on board: natural resources, agricultural goods manufactured goods and technological
goods. Have Ss come up with examples and note down.

Group activity. Use Trading Kit (see attached). Working in groups, Ss find their trading partners. Use
string to connect the different trading partners, illustrating global connectedness. Present different
scenarios (e.g. civil war, trade embargos) and highlight implications, using scissors to cut and pull
string.

Discussion: Write global interdependence on the board. Create a mind map and have Ss
hypothesize meaning and make statements, justifying their opinion.







Trade Game Kit
Rule Board
Materials (See Lesson Plan/Resources for
details)














String
Trading Kit (see Resources)

3 - 4

The winners and losers
of free trade

Students explore:
the benefits and
disadvantages of
free trade
the
interdependence
of markets

Who are economic actors
and what are their roles
and responsibilities?

Video: How Beneficial is World Trade
(patterns of trade, impact of global trade)

Group discussion: What are the benefits of free trade, what are the disadvantages? (draw on
themes and concepts presented in the video).

Controversial Statement Activity
Present students with a series of controversial statements regarding the benefits and disadvantages
of free trade. Ss have to move around the room to the correct answer and justify their opinion. Set
areas for agree, disagree, strongly agree, strongly disagree.

Word Bank
Have Ss work in groups to start a word bank to define and display key
economic/business/geographical terms and concepts: import, export, consumer, productivity,
scarcity, markets, free trade, commodities etc.


Video Activity

Free Trade - The principles of free trade and how it works

Free Trade Agreements (FTAs) and Potential Threats to Thai Farmers - Explores how FTAs are
being used to exploit Thai farmers and threaten the environment.

Activity: Using Socrative students will undertake a quiz based on the 2 videos they have just
watched.

Discussion: Using Socratives ability to provide immediate feedback, it will be clear which concepts
students have grasped and which areas require further attention. Use this information to tailor
discussion to the students needs.

Inquiry Based Learning Activity: Again using Socrative, however in this activity it is the students
who will be asking the questions. First, students will establish a focus question on the topic of Free
Trade. Then using Socrative, they will design a quiz that will be put to the general public in an effort
to improve their understanding and ideally, answer their focus question.








How Beneficial is World Trade?
https://www.youtube.com/watch?v=xRJZWf
qWcs0

See also teacher resource: advantages and
disadvantages of free trade ( see
Resources)














Video: How Free Trade Works
https://www.youtube.com/watch?v=nvgZcc
43wfg

Video: Free Trade Agreements and
Potential Threats to Thai Farmers
https://www.youtube.com/watch?v=K4orVL
JdgW4

Socrative
http://www.socrative.com/index.php

Video: Negative Aspect of Free Trade
https://www.youtube.com/watch?v=okqYDv
eXHX8

5 6











































Australias engagement
with Asia

Students analyse case
studies in the context of
Australias economic
engagement with Asia

Australias Trade
with Asia
/Cashew Farming
in Indonesia























Country Case Study








Cashew Farming in Indonesia

Read handout: Interconnections- a poor mans crop, a rich mans food
Group discussion:
How are transport and communication technologies used in the cashew trade?
How might advances in these areas affect future trade?
How might cashew trade be made fairer for farmers?
Why are cashews called a poor mans crop, a rich mans food?

Read handout: International trade - cashews
Have Ss work in groups, research their local community and identify the source of different products
foods, clothing, cars, white goods, electronics (IPhones etc.). Record findings in a table. What
patterns do they notice? What regions of the world are represented?
What other products do we buy from Asia? How might our choices as consumers affect other
producers?


Fact Finder Activity: Australias Trading Partners
In small groups, have students create a fact sheet using the internet, arranging information under the
following headings:
Major Australian exports
Major Australian imports
Australia's balance of goods trade (amount of imports compared to exports)
Australia's main export and import destinations.

Extension task 1: Have students visit their local supermarket and make a list of 10 different
products they would normally eat/consume, that are from as many different countries as possible.
Bring the data to school and plot and label the information on a map using Pin Drop. As a class
collate and compare data.

Extension task 2: Ss locate a range of products in the local shopping centre that were produced
overseas, and proposing reasons why they were not produced in Australia. Track the food miles for
each product, using food miles website: http://www.foodmiles.com



Reading: Students will read the Executive Summary of the Oct 2012, White Paper commissioned by
Julia Gillard Australia in the Asian Century

Activity: Students choose a country from the Asia-Pacific region and profile its relationship with
Australia from an economic standpoint. Students are free to include whatever information they see fit
however must include;
- The countrys GDP
- Major exports


World Vision Handouts (see Resources):

Interconnections- a poor mans crop, a
rich mans food

International trade - cashews












Suggested Websites:

DFAT
www.dfat.gov,au/geo/fs/

Austrade
www.austrade.gov.au/Export/Export-
Markets/Countries

International Monetary Fund
www.imf.org

Australian Bureau of Statistics
www.abs.gov.au







Australia in the Asian Century

http://www.asiaeducation.edu.au/verve/_re
sources/australia-in-the-asian-century-
white-paper.pdf











7 - 8
























Globalization and Fair
Trade

Students explore the Fair
Trade movement and
other social justice
perspectives on trade

- What they export to Australia
- What Australia exports to them
- Any restrictions to trade/investment

Extension Task: Using an ICT application such as PowToon, Notability, Haiku Deck or Raw Shorts
students present their findings to the class


Trade Justice
Trade Justice Video
Group discussion. Is international trade fair?
Handout - What is Fair Trade?
Teacher led discussion re fair trade movement. Why is fair trade important? What kind of conditions
are commodities produced? Do we have a choice as ethical consumers? What is our role as
economic actors?

Sweatshop Game (Ss play on Ipad, laptop etc).
http://www.simsweatshop.com/game/

Game debrief. Who has Nike shoes at home? What kind of conditions were the workers faced with?
What wage were the paid? etc.

What are you wearing?
Ss investigate the ways people work and how businesses use outsourced labour to manufacture
clothing and shoes in the global economy.

Ss take a photo of themselves and what they might wear on the weekend. Use a photo editor Picasa
to label where each item of clothing might come from. Link labels to Google Maps.
Discussion: Where in the world was most of your clothing manufactured? How many countries were
from the Asian region?

Watch Fashion factories ABC Behind the News.

Mini Research Report
Ss work in groups to create a research report answering the following questions Format can be
negotiated with the teacher. Ss present their findings using an ICT application.

Explain why shoe and clothing companies outsource their labour to countries in the Asia
region.
Define the issues concerning the working conditions in some shoe and clothing factories in
the Asia region.
Identify the impact of the demand for better working conditions on the final costs of clothes
to the consumer.
Explain how some Australian businesses have responded to the impact of the poor conditions
experienced by factory workers

PowToon
Notability
Haiku Deck
RawShorts




Trade Justice Video
https://www.youtube.com/watch?v=ldZwGD
XTsmk

Sim Sweatshop Game
http://www.simsweatshop.com/game/









Photo editing tool
http://picasa.google.com.au

Google Maps
https://www.google.com.au/maps/preview

Fashion Factories Video
http://www.abc.net.au/btn/story/s3749317.h
tm



Possible ICT applications Ss can use:
-Thinglink
-Tellagami
-Stopmotion
-Inkflow
-Notability








9 - 12

Student Inquiry

Students undertake an
inquiry based assignment
on the trade of clothing,
electronics, cars, energy
or other negotiated topic.



Inquiry Based Assessment Task
Students develop questions, inquire, collect and present findings, arguments and ideas.

Student led assessment
Include some explicit teaching in relation to inquiry and skills, and developing inquiry questions.

See attached Assessment Sheet.

Inquiry Assessment Sheet
(see Resources)

Assessment

Formative assessment
Notes
Small and whole group discussions
Completion of tasks and activities (mini research report, fact finder activity)

Summative assessment
Inquiry Assessment Task

Diagnostic assessment
Word bank
Brainstorm
Small and whole group discussions