Tuesday, December 7, 2010

LESSON 15: THE GLOBAL ECONOMY

Focus Question: What are the advantages and disadvantages of the global economy?

Objectives
Students will be able to:
• Explain the theory of comparative advantage.
• Identify the advantages and disadvantages of outsourcing.
• Understand the implications of a globally integrated economy.
• Examine the outlook for American workers in a global economy.

Standards
NES: 5, 6
ELA: 1, 2, 3


Time Frame/Notes to Teacher
• One day, double period
• Worksheets based on readings from The World Is Flat assigned for homework.

Materials
Textbook Chapter on The Global Economy
• To be assigned for homework: The World is Flat by Thomas L. Friedman;
Chapters:
“America and Free Trade”
“The Great Sorting Out,” Sections: Section 1 (Untitled) and “Where Do Companies Stop and Start?”
“The Dell Theory of Conflict Prevention, Old-Time Versus Just-in-Time”

Teaching Strategies
I. America and Free Trade
Review Worksheet 15A, which was completed for homework, by discussing the following:
— What is Ricardo’s free-trade theory of comparative advantage?
— What is the main argument against outsourcing?
— What is the argument for free trade/outsourcing?
— What is the difference between idea-based goods and physical goods?
— Are you in favor of or opposed to outsourcing?


II. Sources of Friction
In a whole-class discussion, explore the “sources of friction” the students identified on Worksheet
15B that Americans might seek to preserve in a flat world. Include in the discussion:
— National boundaries
— Legal protections, such as minimum wages and copyrights
— Cultural identities (values, traditions)

III. The Great Sorting Out
• Compare the results of the students’ research on Worksheet 15C. Discuss as a whole group:
— What responsibility do companies have for ensuring the health and safety of their workers
and the environment?
— How do you feel now about buying goods made in America versus buying products made
elsewhere? Has this lesson changed your outlook on this topic at all? Why or why not?
— Are American students being adequately prepared to compete in a global economy?
• What educational initiatives should the United States take to ensure that its future workers will be
successful in a flat world?

Summary/Assessment
Friedman feels that economic relations in a flat world will be a powerful deterrent to war. In a well
written essay of 200 words, explain why you agree or disagree with this premise.

Homework
• Read materials in preparation for Lesson 16.
• Assign questions for homework

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Worksheet 15A

The World Is Flat by Thomas L. Friedman
“American and Free Trade, Is Ricardo Still Right?”

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Worksheet 15B

The World Is Flat by Thomas L. Friedman
Chapter: “The Great Sorting Out,” Section 1 (Untitled)


The author recounts a conversation with Michael J. Sandel, Harvard University’s noted political theorist,
in which Sandel states

From the telegraph to the Internet, every new communications technology has promised to shrink the distance between people, to increase access to information, and to bring us ever closer to the dream of a perfectly efficient, frictionless global market. And each time, the question for society arises with renewed urgency: To what extent should we stand aside, “get with the program,” and do all we can to squeeze out yet more inefficiencies, and to what extent should we lean against the current for the sake of values that global markets can’t supply? Some sources of friction are worth protecting, even in the
face of a global economy that threatens to flatten them.

What “sources of friction” should we as a nation seek to preserve? Explain.


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Worksheet 15C

The World Is Flat by Thomas L. Friedman
Chapters: “The Great Sorting Out, Where Do Companies Stop and Start”
and “The Dell Theory of Conflict Prevention, Old-Time Versus Just-in-Time”

Exercise: Identify five items in your room and determine the manufacturer and country of origin.

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