LESSON 4: COMPARATIVE ECONOMIC SYSTEMS

Focus Question: How does the U.S. economy compare to its competitors? (Case study: China)


Objectives
Students will be able to:
• Compare the U.S. to the Chinese economy.
• Discuss the positive and negative changes resulting from China’s move to a more capitalist economy.
• Examine the life styles of people at different economic levels in China.

http://schools.nyc.gov/ve/eco/lesson20074.pdf

click here for pdf of "Off Shoring" 

Note to Teachers
Selected section from The World is Flat by Thomas L. Friedman (Farrar, Straus and Giroux, 2005) needs
to be read prior to the lesson.

Materials
• Textbook chapter on: Comparing Economic Systems
• The World is Flat by Thomas L. Friedman, “Chapter 2: The Ten Forces that Flattened the World,
Flattener #6: Offshoring”
• Distribute prior to the lesson: Worksheet 4A, Worksheet 4C

Teaching Strategies
I. China vs. U. S. in 2000 and 2004
Distribute Worksheet 4A, “China vs. U.S. in 2000 and 2004 (Standard of Living).” Have students
complete the exercise for homework prior to this lesson.

On the day of the lesson, as part of the
whole-class discussion, have students explain their answers to the following:
— What did you write in your memo?
— In your own words, how would you compare the standard of living in China with that of the U.S.?
— In what ways is the standard of living in China and the U.S. most similar? Most different?
— What would be the most useful pieces of information to a businessperson about China that
appears on this chart?
— To what extent would you consider China a serious economic competitor to the U.S. today?

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II. China’s Economy: Four Views
Divide the class into groups of four. Distribute Worksheet 4B, “China’s Economy: Four Views.”
Have students follow the directions on the worksheet, and then have them explain the answers to the
following:







— What did you learn about the lives of the four Chinese people you read about?
— What did you learn about the Chinese economy?
— How do the lives of the Chinese you read about compare to the lives of Americans with similar
positions?
— If your firm were interested in doing business in China, what kinds of information found in these
four accounts would be most useful?

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III. Offshoring• Discuss the following from Worksheet 4C, which was completed for homework:
— Define “offshoring.”
— Why is China suited for offshoring?
— What effect does China’s membership in WTO have on:
– American businesses?
– Other developing countries, such as Mexico and Vietnam?
— How does the author describe China’s long-term strategy?
— What could disrupt China’s successes?
— A study by Morgan Stanley published in Fortune magazine (10/4/04) found that this China
flattener (offshoring) helped consumers. How?
— According to the reading, how might offshoring help the U.S. economy?

Divide the class into four groups. Assign each group one of the following topics to discuss and
present to the class:
— What does the author mean by “Either you get flat or you’ll be flattened by China.”
— According to the author, what effect does offshoring have, and will it continue to have, on the
U.S. economy?
— You are running for office and your campaign is in favor of offshoring. Explain why.
— You are running for office and your campaign is against offshoring. Explain why.
Summary/Assessment
Ask students: “If you were a consultant to the Chinese government, what steps would you suggest the
Chinese take to challenge the U.S. as the number one economic power in the world? Explain.”