Global economics

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Global economics

  1. 1. A New York Times Newspaper in Education Curriculum Guide GLOBAL ECONOMICS With The New York Times nytimes.com/nie | (800) 631-1222 10-0317
  2. 2. TABLE OF CONTENTS TEACHING GLOBAL ECONOMICS WITH THE NEW YORK TIMES INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Using The New York Times as a Teaching Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Rationale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Structure of the Lessons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Time Frame . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 The New York Times Learning Network (learning.blogs.nytimes.com) . . . . . . . . . . . .3 Globalization: An Introduction by Dr. Peter F. Bell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Globalization: The Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Globalism: A Brief History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Goals of the Lessons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Standard Materials Needed for Each Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 LESSONS Lesson 1 Lesson 2 Lesson 3 Lesson 4 Lesson 5 Lesson 6 Lesson 7 Lesson 8 Lesson 9 Lesson 10 Lesson 11 Lesson 12 Lesson 13 Lesson 14 Identifying Global Issues: The New York Times Clippings Project . . . . . . . . . . . . . . .6 The Global Economy and the Global Village . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Measuring the Costs and Benefits of Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 What Do We Mean by Development? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Human Development and Gender Development . . . . . . . . . . . . . . . . . . . . . . . . . . .17 How to Improve Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Understanding Development in Specific Countries . . . . . . . . . . . . . . . . . . . . . . . . . .22 What Determines Economic Growth? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Free Trade and Development: The Impact of Nafta . . . . . . . . . . . . . . . . . . . . . . . . .29 Understanding Major Institutions of Globalization: the World Bank, I.M.F. and W.T.O. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 Rich and Poor Countries: Can Foreign Aid and Foreign Investment Help? . . . . . . .32 The Impact of Globalization on Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34 Globalization and “Sweatshops” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 Globalization: What Are the Alternatives? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 APPENDIX Correlation to the Standards of the National Council on Economic Education . . . . . . . . . . . . . . .41 Archive of Related New York Times Articles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 Written by Dr. Peter Bell, Executive Director, New York State Council on Economic Education; Associate Professor of Economics, State University of New York at Purchase. Contributing Writer, Ellen S. Doukoullos. This educator’s guide was developed by The New York Times Newspaper in Education program. It did not involve the reporting or editing staff of The New York Times. © 2010 The New York Times | nytimes.com/nie | (800) 631-1222 1
  3. 3. Global Economics With The New York Times INTRODUCTION USING THE NEW YORK TIMES AS A TEACHING STRATEGY A Message from the Newspaper in Education Program ■ The daily Business section provides still more coverage of international economic issues as well as useful tables and analytical charts. ■ The daily Sports section reports news of international and RATIONALE Capturing student interest in global issues is a challenge for many teachers of global economics. The troubles of distant nations and their peoples long seemed irrelevant to many American students who are surrounded by a wealth of resources and unlimited opportunities. Using The New York Times as a teaching strategy will bring the world to your students in an easy-to-use format. You and your students will find the entire New York Times newspaper is rich with global content. ■ Times reporters live and work in every hemisphere of the world, bringing a first-hand knowledge of the impact of many factors like war and social change on the economic health of large and small nations. Their reports appear on the front page of The Times as well as on the International pages in section A. The World Briefing and News Summary, also in section A, provide a quick summary of news from all parts of the globe. ■ The “Journal” feature appears most days of the week, with events and datelines from a different part of the world. These human interest stories often reveal the stunning impact of economic disruption and decay on families. ■ Analysis pieces that frequently accompany news reports probe behind the raw facts and provoke thinking about the big issues. These pieces are models for writing and instruction in critical thinking. ■ The Editorial and Op-Ed (opposite the Editorial page) and letters pages frequently discuss global economic issues. These pages are models and prompts for essay-writing. ■ Ads throughout The New York Times display goods from all around the globe. The Times is a global marketplace for these goods. Students can see the impact of economic decisions made far away on the pages of the newspaper they hold in their hands. national sports events and athletes, including analysis of the business of sports. ■ Wednesday’s Times reports on foods and beverages – often from around the globe — and the industries associated with them. ■ The Science Times section, published on Tuesday, includes reports of the economics of health care around the globe. ■ The Arts section reports daily on issues such as global entertainment and the publishing industry. Articles about the economic impact of copyright conflicts, for example, may appear in this section as well as in the main news and business sections. ■ Labor issues, restructuring of companies and emerging professions are part of many reports throughout The New York Times. The New York Times becomes your “living textbook.” We encourage you and your students to read, analyze, clip and re-read salient items from its pages each day. STRUCTURE OF THE LESSONS The Objectives for each lesson are designed as an assessment of learning. Students will demonstrate their understanding of the concepts taught by creating a measurable product — such as an essay in the style of the Op-Ed page or news analysis in The New York Times, a chart or role-playing labor issues. The Newspaper Activity takes students into today's New York Times to demonstrate that the complex economic issues are a continuing story happening right now. Using the current day’s issue will engage your students in the immediacy of global economics. Some lessons include Times articles from the archives to be used as models for direct teaching of analysis and critical thinking skills. After students read them, they should turn to today’s Times and apply the skills to current reports of global economic activity. ➧➧➧ | nytimes.com/nie | (800) 631-1222 2
  4. 4. Global Economics With The New York Times INTRODUCTION Cooperative/collaborative learning activities are specified when a concept needs to be analyzed from different approaches. The small groups should be composed of three or four students. Extension/homework activities provide research opportunities for advanced classes, writing assignments and opportunities for problem-solving. Web sites provide up-to-date tables of data from many sources such as the United Nations and World Bank. These references are included for both teacher and students. TIME FRAME Each lesson plan focuses on a specific global economics concept. The lessons build on each other toward an understanding of the global economy. Build the lessons into your teaching schedule. Use the activities in class and as homework. We recommend daily reading of The New York Times as many economics stories evolve daily. Following an issue is crucial for understanding. When time is limited, establish a newspaper learning center in your classroom with the printed newspaper and task cards from the activities in this guide. THE NEW YORK TIMES LEARNING NETWORK learning.blogs.nytimes.com The New York Times Learning Network offers interactive classroom activities based on the Monday – Friday editions of The Times. The wealth of features on the site includes lesson plans linked to specific Times articles, a lesson plan archive and search, an interactive daily news quiz, “Word of the Day,” “On This Day in History” feature that links to historical Times articles, “6 Q’s About the News” activity linked to a Times article, “Times Fill-Ins” sentence completion feature, Student Crossword and Student Opinion (for students age 13 and older). GLOBALIZATION: An Introduction by Dr. Peter F. Bell We live in an increasingly integrated or globalized economy. But what exactly is globalization? Is it a new phenomenon? How should it be taught? How can it be usefully integrated with social studies curricula? There are sharp disagreements concerning the impact of globalization. Anti-globalization protests have interrupted meetings of the I.M.F., World Bank and W.T.O. in many parts of the world. Why the disagreements? On the one hand are people who believe that increased trade and global integration is the only way to raise the standard of living of the poor countries. On the other hand, globalization is accused of causing income inequality, as well as environmental and health problems. Who is correct? Will trade increase the world’s wealth, or is globalization the cause of so many of the problems facing the global economy in the 21st century? Or are these problems caused by internal factors such as corruption or mismanagement? These lessons focus on issues that both teachers and students need to understand. They are among the most critical issues of our time. Without a framework, it is very difficult to make connections between events that are occurring in distant parts of the world. This global economics curriculum guide is designed to help you teach students some of the critical political and economic issues in the current world order. The lessons focus on key topics in the news daily: ■ ■ ■ ■ development and economic growth global institutions such as the World Bank and I.M.F. gender and economic development the impact of trade and globalization on the environment and culture GLOBALIZATION: THE PROBLEMS The World Bank has reported that almost one half (2.8 billion) of the 6 billion people in the world live on less than $2 a day. 1.2 billion people live on less than $1 a day, and 44 percent of the very poorest group live in South Asia. As many as 50 percent of the children under 5 in poor countries suffer from malnutrition (World Development Report 2000/2001: 3). ➧ ➧ ➧ | nytimes.com/nie | (800) 631-1222 3
  5. 5. Global Economics With The New York Times INTRODUCTION Other problems include: ■ The income gap between rich and poor countries, which has doubled in the last 40 years: the average income of the 20 richest countries being 37 times as large as that of the 20 poorest countries. ■ Rapid economic change and rising living standards for the richest groups in a few high-income countries in the world along with stagnation in most countries. ■ Growing threats to the survival of local cultures under the pressure of Western consumerism. ■ The growth of a low-wage industrial work force (much of it of young women) producing consumer goods for people living in the industrialized (high-income) countries. ■ Economic shocks that send vibrations around the world in a matter of seconds. ■ The persistence of low productivity in rural living areas and growing numbers of unemployed people in the crowded slums of the world’s big cities. There are three main responses to these facts: 1 The poor countries deserve their fate. Poverty is a result of their own laziness, having too many children, or the corruption of their leaders. 2 The best cure for poverty is free trade and free markets: the elimination of barriers to the movement of people, capital, and goods. 3 Globalization favors the interests of Western corporations, and threatens the livelihood of billions of people around the world by creating greater inequality of income, and causing labor and environmental problems. This view argues that globalization needs to be curbed, regulated or modified. It is clear that the political and economic world order in which we live has many new elements. The demand for open markets, free movements of goods and capital and the efforts to curb globalization form part of a debate about how the world economic order of the 21st century should be constructed. These debates have become sharply drawn over the past few years with protests directed against the World Bank, I.M.F. and W.T.O., which began in Seattle in 1999, and continued in other cities around the world from Barcelona to Islamabad. And, the terrorist attacks on America on Sept.11, 2001, were very likely in part a statement against U.S. global policies. The lessons in this guide provide ways of examining and understanding some of these important debates about global trade and development and who should direct it. GLOBALIZATION: A BRIEF HISTORY While the term globalization has become widespread in the media, it is not new. Integration of the world economy has been going on continuously since the period of Western exploration and expansion that began in the 15th century. What has changed during the last 500 years is the form and the extent of integration. World history can be divided into three distinct phases: Globalization I, II & III. (Some textbooks refer to these as the Age of Exploration, the Age of Imperialism and the Modern World.) Globalization I (the Age of Exploration) refers to the period of Western economic expansion that began in the 15th century, and that culminated in the creation of formal political empires by European countries in the late 19th century. It created a single world economy for the first time in human history. European expansion included the search for precious metals in Central and South America, the growth of the slave trade from West Africa into the Americas, and the creation of plantation systems around the world. This vast system of resource extraction, while devastating the populations of the Americas and Africa and transforming the economies and political systems of Asia, provided an important part of the capital necessary to launch industrialization in Europe. Globalization I created a system of uneven economic development. Globalization II (the Age of Imperialism), from roughly 1870 to 1945, further integrated the world economy. The European imperialist powers not only divided up the territory of the world into their own empires but also created an international division of labor: the industrialized countries sold manufactured goods to the colonies, which specialized in the production and export of raw materials to Europe. (A result of this process is referred to as “path dependence” in Lesson 8.) ➧➧➧ | nytimes.com/nie | (800) 631-1222 4
  6. 6. Global Economics With The New York Times INTRODUCTION The Europeans invested in infrastructure in their colonies (railroads, colonial administration) to facilitate this process. While increased trade and production led to increased incomes around the world, the benefits were spread unevenly. Coordination of global development was for the first time centralized in London: the center of the British empire and the financial capital of the world. Globalization II further strengthened the uneven development of the world economy by concentrating the world’s capital in Europe: there was “capital deepening” in the European countries rather than “capital widening” across the world. Few countries became industrialized. For most countries the specialization into primary production created the development problems that persist today. Globalization III (the Modern World), from 1945 to the present, is a new and more developed form of global integration and uneven development. It covers the period of de-colonization, the shift in world power from Europe to the United States, the discovery of the problem of “development” in the former colonies (which became known as the third world), the growth of foreign investment and industrialization in the less developed world, and the emergence of new institutions of global economic management: the I.M.F. and the World Bank. This time period saw the emergence of integrated trading blocks such as the European Union, Mercosur, Nafta and Asean. Most recently, increased level of global financial flows (through currency and stock markets) have added a new dimension to economic integration that has been linked to the increasing vulnerability of the global financial system. Globalization III clearly builds on the earlier periods. As indicated by the World Bank data, uneven development (measured by the gap between rich and poor countries and people), rather than diminishing as a result of development programs, has intensified in this period. These lessons will help your students examine the debates about global trade and development and place them in a clear historical framework. THE GOALS OF THE LESSONS At the conclusion of these lessons, your students will be able to discuss and write about: 1) Economic and political issues in the global economy through daily reading of The New York Times. 2) The interdependence between the lives of people living in the United States with people in other parts of the world. 3) World geography in terms of the global distribution of resources and differences in patterns of development in Asia, Africa and Latin America. 4) The main issues facing both rich and poor countries in the global economy. 5) The reasons for the gap between rich and poor countries, and the arguments for and against globalization. 6) Moral and ethical positions about the world order, their own and others. Students will acquire these skills: 7) Determining the difference between fact and opinion. 8) Analyzing basic data related to global economics. 9) Critical thinking about globalization. 10) Generating priorities and moral opinions about the world in which we live. 11) Integrating current events into all other disciplines, including global history, geography, government and economics. STANDARD MATERIALS NEEDED FOR EACH CLASS: ■ World atlas or wall map (one per class) ■ Scissors (several for the class) ■ Folders or binders in which to keep clippings (one per student) ■ Copies of The New York Times (one per student) ■ Notebook (one per student) ■ Pen (one per student) ■ (optional) Overhead projector ■ (helpful) Computer with Internet connection | nytimes.com/nie | (800) 631-1222 5
  7. 7. Global Economics With The New York Times LESSON PLAN 1 IDENTIFYING GLOBAL ISSUES The New York Times Clippings Project OBJECTIVES: At the conclusion of this lesson, students will be able to: ● Identify and clip articles relating to the global economy from various sections of The New York Times. ● Identify countries that are in Asia, Africa or Latin America. ● List and categorize political and economics topics from the articles clipped. TOOLS AND PREPARATION ● Today’s New York Times, one per student. ● Copies of worksheets A and B for Lesson One, one each per student. ● Article Summary Format Sheet, one per student. ● Standard materials as listed in the Introduction. ● Write “Asia,” “Africa” and “Latin America” on the board. ● Scan today’s New York Times and mark articles in various sections that you will refer to and use in direct teaching. WARM UP ASK YOUR CLASS: Who in this classroom has ever been to a country in Asia, Africa or Latin America? Ask those who raise their hands: How rich or poor were the countries you visited? How do you know? NEWSPAPER ACTIVITY ■ Hold up a copy of today’s New York Times. Distribute a copy to each student. ■ Point to the names on the board: Asia, Africa and Latin America. ■ Direct students to find and mark article in all sections of today’s Times about countries in these three areas of the world. ■ Tell students to write Asia, Africa or Latin America at the top of each article that they locate. ■ Tell students they may use the atlas or wall map to locate different countries in the articles. ■ Allow time for students to survey the newspaper and locate articles. ■ Check for understanding by reviewing student selections and coding by location. ■ Distribute copies of Worksheet A for Lesson 1. ■ Direct students to a pre-selected article and review it using the Worksheet: identify country, main issue and key concepts. ■ Allow time for students to find other articles and enter the information on their Worksheets. DISCUSSION ■ Tell students to refer to their worksheets and to rank the main issues in order of importance. ■ Have students read these main issues to the class and have someone write them on the board. ■ Ask students to raise their hands to vote on which are the most important concepts. ■ ASK: Why do some topics apply to more than one country? EXTENSION/HOMEWORK ASSIGNMENT Distribute Worksheet B for Lesson 1. Review with students. Establish due date. (Students will need to take their copies of The New York Times home to complete, if a homework assignment.) | nytimes.com/nie | (800) 631-1222 6
  8. 8. LESSON 1 Global Economics With The New York Times WORKSHEET A IDENTIFYING GLOBAL ISSUES NAME OF STUDENT_______________________________________ DIRECTIONS: write the name of the country (and continent where it is located) in one column (e.g. Kenya /Africa), the main issue that the article is about in another column (e.g., HIV/AIDS.) In the third column, write words or concepts in the article that need defining or discussing. ARTICLE 1 Headline of article ____________________________________________________________________ Date/section/page ____________________________________________________________________ Country/Continent ___________________________________________________________________ Main topic __________________________________________________________________________ Concepts ___________________________________________________________________________ ARTICLE 2 Headline of article ____________________________________________________________________ Date/section/page ____________________________________________________________________ Country/Continent ___________________________________________________________________ Main topic __________________________________________________________________________ Concepts ___________________________________________________________________________ ARTICLE 3 Headline of article ____________________________________________________________________ Date/section/page ____________________________________________________________________ Country/Continent ___________________________________________________________________ Main topic __________________________________________________________________________ Concepts ___________________________________________________________________________ ARTICLE 4 Headline of article ____________________________________________________________________ Date/section/page ____________________________________________________________________ Country/Continent ___________________________________________________________________ Main topic __________________________________________________________________________ Concepts ___________________________________________________________________________ | nytimes.com/nie | (800) 631-1222 7
  9. 9. LESSON 1 Global Economics With The New York Times WORKSHEET B IDENTIFYING GLOBAL ISSUES Article Summary Format Worksheet NAME OF STUDENT_______________________________________ DIRECTIONS: ■ Select an article from The Times involving global economics. ■ Clip the article and attach to the worksheet. ■ Read the article carefully, underlining the main points. HEADLINE OF ARTICLE:____________________________________________________________ DATE OF ARTICLE (day/month/year)_____________________________Section/Page____________ Write the main idea in one or two sentences.________________________________________________ __________________________________________________________________________________ Provide three supporting details (of no more than one or two sentences each). 1.________________________________________________________________________________ __________________________________________________________________________________ 2.________________________________________________________________________________ __________________________________________________________________________________ 3.________________________________________________________________________________ __________________________________________________________________________________ Write here the words/concepts in the article that you did not understand. WORDS/CONCEPTS________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ ■ Write a paragraph stating your opinion of this situation.List questions you need to ask and additional factual information you will need to know in order to prepare a solution to the reported problem. Store the clipping in a folder or binder for future reference. ■ Be prepared to discuss the article and your opinion and what more you need to find out. DUE DATE:_________________________________ | nytimes.com/nie | (800) 631-1222 8
  10. 10. Global Economics With The New York Times LESSON PLAN 2 THE GLOBAL ECONOMY AND THE GLOBAL VILLAGE OBJECTIVES: At the conclusion of this lesson students will be able to explain in writing or on a chart: ● the wide gap in incomes and social conditions between groups and countries in the global economy. ● the high degree of interconnectedness and interdependence of all people and countries, and ways in which this occurs through trade, investment, labor migration, stock markets, etc. ● the meaning of “globalization.” TOOLS AND PREPARATION ● Go to www.worldbank.org and download and make copies of tables from the latest World Development Report on income, population, and quality of life (health and education) for every country in the world. Go to the main site, then to data by topic or country data. Download and make copies of data on imports into the United States and our major trading partners. ● Today’s New York Times, one copy per student ● Worksheet for Lesson 2, one copy per student. ● Scan The Times for articles to use in direct teaching. NEWSPAPER ACTIVITY ■ Divide class into collaborative groups. ■ Distribute The New York Times to each student. ■ Distribute Worksheet for Lesson 2. Review with students using pre-selected article. DISCUSSION ■ Write on board a list of the main goods, and country of origin, that each group has identified. ASK: which countries are the biggest trading partners with the United States? ■ Lead a discussion of some of the advantages and disadvantages of trade (e.g., are the goods cheaper if imported, does it matter which countries we trade with?). ■ Distribute copies of downloaded World Development Report showing the major imports and exports, and the main trading partners of the United States. Have the class discuss any major differences with their own lists. ■ Distribute copies of the downloaded World Development Report listing the countries that are our major trading partners. Show students how to locate data on these countries: data on the average income of and quality of life for each of our major trading partners and data for the United States. ■ Ask students reasons for the wide gaps between countries (e.g., China $780 average per capita income; the United States $30,600). Note: This lesson has suggested the great importance of trade in terms of both essential goods (e.g., oil), and desirable goods (e.g., sneakers). EXTENSION/HOMEWORK ASSIGNMENT Distribute Worksheet B for Lesson 1. Review with students. Establish due date. (Students will need to take their copies of The New York Times home to complete, if a homework assignment.) Have students check: ■ What percentage of the U.S. economy is involved in trade and what percentage of the economy consists of goods that are produced and consumed in the United States? The United States is less dependent on trade than many other countries, (e.g., in Japan, 50% of the economy is trade). Point out to students: ■ Our trading partners have widely different levels of income, many of them far below the average income in the United States. Underscore that wide disparity of income and living standards is a striking feature of the global economy, and indicate that this gap will be explored in later lessons. ➧➧➧ | nytimes.com/nie | (800) 631-1222 9
  11. 11. Global Economics With The New York Times LESSON PLAN 2 THE GLOBAL ECONOMY AND THE GLOBAL VILLAGE CLIPPINGS PROJECT Assign groups of students to various hemispheres of the world. Students in each group will each be responsible for one or two countries. Every day, students will locate as many articles in The New York Times as possible relating to a country in their assigned hemisphere. These groups of students will become “experts” on the reported economic issues and periodically update the class about economic conditions. These reports can be in the form of a class newspaper, scripted news broadcast or charts illustrated with headlines from The New York Times. | nytimes.com/nie | (800) 631-1222 10
  12. 12. LESSON 2 Global Economics With The New York Times WORKSHEET THE GLOBAL ECONOMY AND THE GLOBAL VILLAGE NAME OF STUDENT_______________________________________ DIRECTIONS: Use The New York Times to develop a list of countries you believe the United States trades with extensively. Trade means we import and export goods. Check the news columns and the advertisements for clues. Begin with the countries where the clothes and shoes that you are wearing were made. ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ List different types of goods: agricultural (e.g., wheat), resources (e.g., oil), services (e.g., banks, movies), manufactured goods (e.g., clothing, VCR’s), technology (e.g., computers). ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ List the countries that you believe are the largest trading partners of the United States. ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ | nytimes.com/nie | (800) 631-1222 11
  13. 13. Global Economics With The New York Times LESSON PLAN 3 MEASURING THE COSTS AND BENEFITS OF TRADE OBJECTIVES: At the conclusion of this lesson students will be able to write an essay on each of these topics: ● There are no countries in the world that are selfsufficient; all are involved in trade in varying degrees. ● The theory of comparative advantage (a theory used by economists and others to show the benefits of free trade between countries). ● An explanation of how the theory of comparative advantage applies to trade between relatively equal trading partners and that trade between countries at very different levels of development may not lead to equal costs and benefits. TOOLS AND PREPARATION ● Today’s New York Times, one per student. ● Copies of the Op-Ed column by Thomas Friedman (“Protesting for Whom?”) in praise of free trade (reprinted in this guide, originally published April 24, 2001), one per student. ● Review the Friedman article. ● Download Ricardo's theory of comparative advantage from www.systemics.com/ docs/ricardo/david.html ● Make copies of Ricardo's theory, one per student. WARM UP ■ ■ ■ ■ ■ Divide class into collaborative groups Distribute Lesson 3 worksheet. Review instructions. Assign A and B groups from Worksheet. Allow time for students to complete group work. Discuss. Check for understanding of differences between Groups A and B. NEWSPAPER ACTIVITY ■ Distribute copies of today's New York Times. ■ Direct students to clip articles and ads from today’s New York Times showing goods that they would like to acquire through trade. DISCUSSION ■ Write a list of these goods on the board. ASK: ● Why do we buy these goods from other countries rather than make them in the United States? ● What are the advantages and disadvantages? EXTENSION ACTIVITY #1 Distribute handout on “Ricardo’s Theory of Comparative Advantage.” Allow students a few minutes to read the article. Run through the data related to before and after trade. ASK: How does trade and specialization create more wealth for both parties involved in exchange? (Specialization permits people who are more skilled at a particular activity, who have what is called a “comparative advantage,” to produce it and exchange with others for things that the latter are better at producing. This process will result in the production and exchange of more goods and services for both parties to the exchange, compared with what they would get through self-sufficiency.) Explain that the theory of comparative advantage shows that even if one country could produce both goods more efficiently than the trading partner, both countries will benefit if they specialize in producing one type of good and trading it for the other good that they wish to acquire. (Refer to Lesson 2. Both the United States and China benefit by exchanging clothing for computers. China, because of its advantage in cheaper labor, can produce the clothing more efficiently that it could be produced in the United States, while the United States has a comparative advantage in knowledge-based industries like high technology. Inform students that problems with the theory of trade will be discussed in Lessons 13 and 14.) Assign students to find examples in The New York Times of countries exchanging goods they specialize in producing (e.g., computers, clothing, textiles). Establish due date. ➧ ➧ ➧ | nytimes.com/nie | (800) 631-1222 12
  14. 14. Global Economics With The New York Times LESSON PLAN 3 MEASURING THE COSTS AND BENEFITS OF TRADE EXTENSION ACTIVITY #2 Advise students that one of the biggest trends in globalization is the growth of free trade (Nafta, FTAA, European Union, Mercosur, etc.). It is also one of the most hotly debated issues. Assign students to clip articles from The Times dealing with problems and issues of international trade. Distribute copies of “Protesting for Whom?” column by New York Times columnist Thomas L. Friedman as a stimulus. (Column is reprinted in this guide.) | nytimes.com/nie | (800) 631-1222 13
  15. 15. LESSON 3 Global Economics With The New York Times WORKSHEET MEASURING THE COSTS AND BENEFITS OF TRADE NAME OF STUDENT_______________________________________ The purpose of today’s activity is to compare the benefits of a country that trades compared to one that tries to be self-sufficient. GROUP A. DIRECTIONS: Each member of this group should determine which skill he or she can best trade with other members of the group. Describe one skill that you could contribute to the group, such as hair-cutting, fixing cars, cooking, painting, trouble-shooting computers. Record how many hours of each person's skill they would exchange for another person’s skill — for example, three hours of cooking for three hours of automotive repair or five paintings. YOUR SKILL_________________________________# OF HOURS TO EXCHANGE___________ ■ Quickly choose a leader, recorder and presenter for your group. ■ Discuss these questions and be prepared to deliver your group's answers to the whole class: ● What are the advantages of exchanging these services to all students in the group? ● What is the activity that has to be given up to specialize (what economists call the “opportunity cost”)? GROUP B. ■ Quickly choose a leader, recorder, and presenter for your group. ■ This group will assume that no one exchanges with anyone else and that everything that you need has to be obtained through your own efforts. ■ Make a list of your daily needs (such as food, shelter, etc.) and the skills required to meet these needs. ■ Discuss these questions and be prepared to deliver your group’s answers to the whole class: ● How much extra time would you need to spend learning the skills to acquire the goods or services desired? ● Would this result in members of your group having more or less of both goods? | nytimes.com/nie | (800) 631-1222 14
  16. 16. Global Economics With The New York Times LESSON PLAN 4 WHAT DO WE MEAN BY DEVELOPMENT? OBJECTIVES: At the conclusion of this lesson students will be able to: ● Write an explanation of “economic growth” and “economic development.” ● Write an essay in the style of a New York Times Op-Ed page article delineating how different definitions of development are based on different values. NEWSPAPER ACTIVITY TOOLS AND PREPARATION ● Today’s New York Times, one per student. ● Download and make copies for each student of tables from the latest World Development Report on income, population and quality of life (health and education) for every country in the world: www.worldbank.org ● Download document by A.K. Sen on development and make copies for students. www.worldculture.org/ julykirk.html ASK: Are your estimates close to the numbers in the handout? ■ Divide the students into small groups. ■ Distribute The New York Times and Lesson 4 Worksheet. ■ Review and allow time for collaborative work. ■ While students meet in collaborative groups, write on the board the estimated cost of living in the United States and in two other countries of the world. DISCUSSION ■ Distribute copies of the downloaded World Development Report on income in each country and direct students to find the data on the United States and on other countries that they have identified. ■ Discuss similarities, differences. ASK: What is the meaning of “development”? ■ Record student definitions of “development” on the board. EXTENSION/HOMEWORK ACTIVITIES Assign and establish due dates. A. Distribute copies of the article summarizing Sen’s view of development. Direct students to summarize his definition of development for discussion in the next class period. B. Write a news analysis that might accompany a major news article in the New York Times, analyzing the meaning of development. Use material from student clippings files for supporting factual information. | nytimes.com/nie | (800) 631-1222 15
  17. 17. LESSON 4 Global Economics With The New York Times WORKSHEET WHAT DO WE MEAN BY DEVELOPMENT? NAME OF STUDENT_____________________________________ DIRECTIONS: 1 4 2 5 Clip articles and ads from The New York Times that show goods and services that are important to your standard of living such as housing, clothing, food, transportation, computers, travel, entertainment (TV, videos, CD’s), consumer goods, fashion items (e.g., makeup, jewelry); sports gear, services (banks); education. Rank the items in The Times that you consider to be the most important. _________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ _______________________________________ 3 Estimate how much income a family would need each month to cover all of these wants and needs.________________ ________________________________________ Clip articles that describe or show pictures of people in less developed regions of the world. Estimate the cost of living (per year) of the people in these clippings. Include in your estimate the value of food and household goods that may be produced and consumed at home. Write a list of things that may be important to your standard of living that are not identified in their list, and that cannot be bought. (Hint: public services such as transportation, a hospital or parks; absence of tensions based on race or ethnicity; safety in the community; adequate police protection or low crime rates.)__________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ | nytimes.com/nie | (800) 631-1222 16
  18. 18. Global Economics With The New York Times LESSON PLAN 5 HUMAN DEVELOPMENT AND GENDER DEVELOPMENT OBJECTIVES: At the conclusion of this lesson students will be able to: ● Define “human development” and “gender development.” ● Produce a chart illustrating how human and gender development are measured with an explanation of what the chart reveals. ● Produce a chart reporting that women around the world have lower incomes than men, receive less education and health care, and also do a lot of work for which they are not paid. NEWSPAPER ACTIVITY TOOLS AND PREPARATION ● Today’s New York Times, one per student. ● Copies of Lesson 5 Worksheet, one per student. ● Use the overhead projector or make copies of articles from this guide on the position of women in India and El Salvador. See Appendix. ● Download the following tables from the United Nations Human Development Report for the latest available year. (Change the year in the Web site address for the appropriate year.) Make copies for students. ASK: Human Development Index: www.undp.org ➧➧➧ ■ Distribute today’s New York Times. ■ Direct students to examine all sections of today’s Times and clip articles that deal with women, including advertisements that portray women. ■ Tell students to be prepared to discuss what the clippings show about women. DISCUSSION Invite students to share their clippings with the class. ASK: ■ What do the clippings show about women, e.g., how are women portrayed in the ads? ■ Do any of the clippings deal with the lives of women in the less developed world? ■ What do these show? Distribute to each student copies of the articles on women in India and El Salvador. Allow time for students to read the articles. Summarize the students’ ideas on each question on the board during the following discussion. ■ What do these articles show? ■ How would you describe the situation of women in these two countries? ■ What are the main economic activities in which they are engaged? ■ What could be done to improve their situation? Explain the Human Development Index (HDI) used by the United Nations Development Report (UNDP). It is an index that measures three factors: income per capita, literacy rates and life expectancy. Use the U.N. Web site to obtain current data. ■ Distribute the Lesson 5 Worksheet on Human and Gender Development. ■ Direct students to find the data for the countries in their clippings, then enter data on their Worksheets. ■ Explain the definition of the Gender Development Index (GDI) used by the United Nations. (This index measures the same three factors as the HDI but it shows the gender gap in terms of differences in men’s and women’s per capita income, literacy rates and life expectancy.) ■ Direct students to locate the Gender Development Index in the handout for each country and enter it on their Worksheets, in the next column. ASK: ■ Which number is higher or lower? ■ How is gender inequality shown in the Gender Development Index? ■ What factors might cause this inequality? ➧➧➧ | nytimes.com/nie | (800) 631-1222 17
  19. 19. Global Economics With The New York Times LESSON PLAN 5 HUMAN DEVELOPMENT AND GENDER DEVELOPMENT Gender-related Development Index: www.undp.org Gender Empowerment Measure: www.undp.org ■ Direct students to locate the Gender Empowerment Measure (GEM) for the same countries and enter data on the worksheet. (Explain that GEM shows the percentage of women in high- level management or political positions. It is used as another measure of gender inequality.) ■ Then direct students to enter the same data for the United States on the Worksheet. ASK: BACKGROUND FOR THE CLASS DISCUSSION. In recent years the United Nations has argued that broad social indicators such as human development and gender development should be included in goals of economic development. The human development index measures health and education as well as income, and the gender development index measures the gap between men and women in these three areas. The gender empowerment measure also looks at the degree to which women occupy the higher paid jobs or positions of political power. ■ How do other countries compare with the United States? ■ Which countries have high and low HDI, GDI and GEM? EXTENSION/HOMEWORK ACTIVITIES Assign students to list activities that women do but for which they do not receive income or wages (e.g., housework), for discussion in the next class. Explain that much of the work done by women is performed without any wages being paid. The United Nations estimated that in 1995 the total value of women’s unpaid work around the world was $12 trillion. SEE ALSO: www.undp.org/unifem www.un.org/womenwatch | nytimes.com/nie | (800) 631-1222 18
  20. 20. LESSON 5 Global Economics With The New York Times WORKSHEET HUMAN DEVELOPMENT AND GENDER DEVELOPMENT NAME OF STUDENT_______________________________________ DIRECTIONS: 1 2 3 4 List the countries reported in your New York Times clippings under the Name of Country column below. Locate the Human Development Index data for the countries in your clippings, then enter data under the HDI column. Locate the Gender Development Index in the handout for each country and enter it under the GDI column. Locate the Gender Empowerment Measure for each country and enter under the GEM column. NAME OF COUNTRY HDI GDI GEM A. B. C. D. E. | nytimes.com/nie | (800) 631-1222 19
  21. 21. Global Economics With The New York Times LESSON PLAN 6 HOW TO IMPROVE DEVELOPMENT OBJECTIVES: At the conclusion of this lesson students will be able to: ● Define in writing what is meant by “development.” ● Write a report that describes and draws conclusions about some of the universal problems that arise in trying to raise a country’s standard of living. ● Prepare a chart comparing and contrasting the development problems in their own town or neighborhood with countries in Africa or Asia. ● Write an essay on the breadth and depth of the development process. TOOLS AND PREPARATION ● Today’s New York Times, one per student. ● Scan and tab today’s New York Times for articles about groups bringing about change in their local communities or in the global economy. ● Copies of Worksheet on Improving Development, one per student. ● Write on board a list of potential sources of money for development (e.g., private firms/investors, savings in the community, bonds issued by local or city government, loans from banks or from people living outside of the community, community retail products created through increased productivity). WARM UP ASK YOUR CLASS: ■ Who has the power to change things in your neighborhood? ■ Who has the power to change things in the global economy? ■ Divide the class into collaborative groups. ■ Distribute the Lesson 6 Worksheet on development. ■ Review instructions on the Worksheet. Refer students to the list on the board. NEWSPAPER ACTIVITY ■ Distribute copies of today’s Times. ■ Direct students to scan the newspaper for examples of groups bringing about change in a local community or in the global economy. Notice who has the power. ■ Discuss and refer to list of resources on board as they apply to examples in the news. DISCUSSION ASK: ■ How are the problems facing your own community similar to or different from those faced by poorer countries, as reported in New York Times articles? (In both locations, people are concerned with improving development and may try many different policies to bring this about.) ■ What conclusions can you draw from these comparisons? ■ Guide students toward these concepts by asking for specific examples. ■ Development is a complex social, economic and political process, whether it involves a country or a single community. ■ The lack of economic resources, especially capital, makes it very difficult to improve the development of a community or country. ■ Peoples’ values, skills and their desire for change are very important in determining what can be accomplished. EXTENSION/HOMEWORK ACTIVITIES Assign and establish due dates. ■ Create a poster showing the steps in development of a community on the moon. ■ Write an analysis in the style of a New York Times background report that describes some of the universal problems that arise in trying to raise a country’s standard of living. ■ Prepare a chart titled “Problems of Development” that compares and contrasts your own town or neighborhood with countries in Africa or Asia. ■ Write an essay in the style of The New York Times Op-Ed page illuminating the thesis that development is a very broad process involving many changes in the economic, social and political system, as well as changes in people’s culture and way of life. | nytimes.com/nie | (800) 631-1222 20
  22. 22. LESSON 6 Global Economics With The New York Times WORKSHEET HOW TO IMPROVE DEVELOPMENT NAME OF STUDENT_______________________________________ 1) Review the list in the “Development Goals” column below. Discuss in your group what you believe is needed to improve the development of your neighborhood or town. 2) Rank the goals listed and add any other goals that you consider important. 3) Write below in the “Changes Needed” column what must be done in your community to achieve each of these goals. (For example, better education might require building new schools or adding more teachers; more jobs might mean attracting new businesses.) 4) In the “Resources” column, write in where the town will get the resources needed to achieve these goals. 5) Present your rankings and other responses below to the class and be prepared to discuss any differences with other students’ responses. RANKING DEVELOPMENT GOAL CHANGES NEEDED RESOURCES higher incomes better quality of life better health and education more consumer goods greater equality of income more opportunities for women Members of Group___________________________________________________________________________ __________________________________________________________________________________________ | nytimes.com/nie | (800) 631-1222 21
  23. 23. Global Economics With The New York Times LESSON PLAN 7 UNDERSTANDING DEVELOPMENT IN SPECIFIC COUNTRIES OBJECTIVES: At the conclusion of this lesson students will be able to: ● List some basic economic concepts (e.g., production, trade, capital, investment, productivity, foreign investment, external debt, the distribution of income and political corruption). ● Discuss and write about the changes that are both necessary and possible to bring about development. WARM UP TOOLS AND PREPARATION ● Today’s New York Times, one per student. ● Copies of Lesson 7 Handout, “Glossary of Basic Economic Concepts and Definitions,” one per student. ● Copies of Lesson 7 Worksheet, one per student. ● Scan today’s Times for examples of articles that illustrate the problems of development. ● Review Times article on the economy of the Philippines included in the Appendix of this guide. Use with overhead projector or make copies for students. DISCUSSION ■ Present the Times archive article on the Philippines as a model for this lesson, as it identifies issues such as political corruption, the country’s external debt and the role of foreign investment. ■ Direct students to read the article, then summarize the issues raised in it. ■ Advise students that they will read future news articles reporting similar problems. NEWSPAPER ACTIVITY ■ Distribute copies of The New York Times. ■ Distribute Worksheet A. Review with students. ■ Direct students to look for articles that illustrate problems of development and rank the factors that are most important for a country’s standard of living. Guide the discussion so that students describe some of the problems facing poor countries, based on their reading in today’s Times and in their clippings file. For example, an article about rural life in Africa would mean discussing the low levels of productivity (output per worker hour). And this might result from poor use of land, very little technology or low skills. ASK YOUR CLASS: ■ What are the main development problems facing each of the countries you have read about in today’s Times or in your clippings? ■ How could existing resources be used more efficiently for development (e.g., spending more on education and less on importing luxury automobiles)? ■ What changes in the economic or political system might be necessary in order to increase resources for development? ■ What is the role of external forces in the global economy (such as foreign investors, the I.M.F./World Bank)? ■ How might these affect development problems? EXTENSION/HOMEWORK ACTIVITIES See Lesson 7 Worksheet B and Glossary Handout. Distribute and review with students. Give assignments #1 and/or #2 from Worksheet B. Establish due dates. Background Notes: Textbooks (and the National Standards) refer to scarcity as if it has always been a universal condition of human existence. In fact scarcity was unknown in many earlier societies, which had enough goods to satisfy their needs. Scarcity is sometimes associated with societies in which people are assumed to have “unlimited wants.” Such societies, like modern capitalist societies, have unique characteristics. They are based on constant growth, i.e., expanding output and consumption. Expanding consumption and “unlimited wants” are fueled by the advertising industry, so that scarcity is a relative term. ➧➧➧ | nytimes.com/nie | (800) 631-1222 22
  24. 24. Global Economics With The New York Times LESSON PLAN 7 UNDERSTANDING DEVELOPMENT IN SPECIFIC COUNTRIES Additional Notes on “scarcity” entry in Glossary: Natural scarcity: the quantity of which cannot be increased, like most land and resources, by improved productivity (more output per worker hour). Improved productivity continuously offsets scarcity by producing more from the same resources. Accidental/temporary scarcity: may cause temporary, and geographically localized, forms of scarcity for particular groups or regions. Socially-produced scarcity: this kind of scarcity does not derive from any natural limits on what is available (both actually and potentially) to ensure well-being. | nytimes.com/nie | (800) 631-1222 23
  25. 25. LESSON 7 Global Economics With The New York Times WORKSHEET A UNDERSTANDING DEVELOPMENT IN SPECIFIC COUNTRIES NAME OF STUDENT_______________________________________ Scan The New York Times for articles about development in specific countries. For each article, write in the names of countries on Worksheet in one column and the main problems of development in the other. A Headline of News Article______________________________________________________________ Date____________________________________Section/Page_________________________________ Country____________________________________________________________________________ Main Development Issues______________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ B Headline of News Article______________________________________________________________ Date____________________________________Section/Page_________________________________ Country____________________________________________________________________________ Main Development Issues______________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ C Headline of News Article______________________________________________________________ Date____________________________________Section/Page_________________________________ Country____________________________________________________________________________ Main Development Issues______________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ | nytimes.com/nie | (800) 631-1222 24
  26. 26. LESSON 7 Global Economics With The New York Times WORKSHEET B UNDERSTANDING DEVELOPMENT IN SPECIFIC COUNTRIES NAME OF STUDENT_______________________________________ ASSIGNMENT #1 DIRECTIONS: Find examples in The New York Times of articles illustrating each definition listed in the Glossary. ■ Clip, attach to notebook paper, note date/section/page and label with the economic definition. DUE DATE:_________________________________ ASSIGNMENT #2 DIRECTIONS: Write an analysis in the style of The New York Times Op-Ed page, using facts gathered in your research, on one of these topics: ■ Economic issues lie at the core of development (e.g., internal causes such as the lack of capital, low productivity, poor human capital, lack of technology and external factors such as debt). ■ Social and political factors may prevent stable economic development (e.g., ethnic conflicts, government corruption). ■ Economic development involves changes in the political system, cultural values, etc. DUE DATE:_________________________________ | nytimes.com/nie | (800) 631-1222 25
  27. 27. LESSON 7 Global Economics With The New York Times GLOSSARY UNDERSTANDING DEVELOPMENT IN SPECIFIC COUNTRIES GLOSSARY OF BASIC ECONOMIC CONCEPTS AND DEFINITIONS CAPITAL: the resources needed to increase labor productivity (machines, technology and money). EXTERNAL DEBT: the amount of money owed by a country to foreign lenders. FOREIGN INVESTMENT: capital investment in one country from another, e.g. Ford Motor Company invests in a new factory in China. G.D.P. PER CAPITA: the G.D.P. divided by the population (this tells us how much every member of the country would receive if everyone received the same amount). GROSS DOMESTIC PRODUCT (G.D.P.): the total of all the (new) goods and services produced within the country within a quarter or a year, measured in current prices. G.D.P. is the most commonly used measure of an economy’s size; annual increases in G.D.P. are a commonly cited measure of economic growth. (An alternative measure is gross national product (G.N.P.) which includes production that occurs outside of the country, such as profits made by overseas subsidiaries of U.S. companies.) HUMAN CAPITAL: looks at the skills of the labor force, determined by education, training etc. INTERNATIONAL MONETARY FUND (I.M.F.) AND THE WORLD BANK: international lending institutions that lend money in return for a commitment by the country to follow certain development policies. The reforms required in return for these “structural adjustment loans” almost always include (1) currency devaluation, (2) trade liberalization (reducing tariffs), (3) reducing federal government deficits by cutting spending, (4) controlling wage increases and inflation and (5) privatization of stateowned enterprises. (See Lesson 10). OPPORTUNITY COST. This concept is usually discussed in the context of scarcity and the choices that it imposes. In fact there are many different meanings not all of which depend on scarcity, such as: (a) Making choices that do NOT arise from scarcity, but from the limitations of human existence e.g., the inability to live in more than one country at one time or to choose between two fruits which may be both in abundant supply (or between writing poetry and exercising). Such choices are not dependent in any sense on scarcity of resources. (b) Giving up one activity to acquire another (e.g., studying in one college precludes studying in another at the same time. (c) Choices necessitated by short-term “scarcity,” i.e., by limited income, resources or time, e.g., acquiring a computer may preclude buying a car, buying CD’s may restrict buying school books. Scarcity of this type may be overcome in the long run by increased productivity, which will allow one to acquire more of both. PRODUCTIVITY OF LABOR: the output per worker per hour. This determines both economic growth and the standard of living of people living in a particular economy. SCARCITY. There are several different types of scarcity that need to be carefully distinguished: (a) natural scarcity: refers to the finite nature of certain natural resources. (b) accidental/temporary scarcity: resulting from bad harvests, floods, accidental losses and migration (c) socially-produced scarcity: resulting from the socially and politically determined global distribution of wealth and income, access to capital and technology, education, etc. e.g., the co-existence of wealth and poverty and the scarcity of jobs (unemployment rates, which are established in part by economic policy). WORLD TRADE ORGANIZATION (W.T.O.): is primarily concerned with promoting increased global trade through tariff reductions. | nytimes.com/nie | (800) 631-1222 26
  28. 28. Global Economics With The New York Times LESSON PLAN 8 WHAT DETERMINES ECONOMIC GROWTH? OBJECTIVES: At the conclusion of this lesson, students will be able to discuss and write about: ● Why economies grow at different rates. ● The central role of productivity in economic growth. ● The difference between industrial and agricultural production as sources of growth. ● The concept of “path dependency.” WARM UP TOOLS AND PREPARATION ● Today’s New York Times, one per student. ● Scan today’s New York Times and tab articles on low-income economies. ● Download data on agricultural population and agricultural production in different countries and make copies for students (or use overhead projector). ● Download World Development Report tables on income, population and quality of life (health and education) for every country in the world, and make copies for students (or use overhead projector): www.worldbank.org (See country data or data by topic pages.) ■ Distribute today’s New York Times. ■ Direct students to locate articles about low-income economies. Allow time to search Direct each student to make a personal list of 10 possessions (such as a car) and 10 activities (such as sports) they each enjoy. Then say, “As you look at the economic data we’ll use today: what economic conditions in the United States make it possible for you to have all the activities and possessions you enjoy?” ■ Distribute World Bank Report tables (or use overhead projector). ASK: ■ Which three countries in the World Bank Tables have largest/smallest per capita incomes? ■ What are the reasons some economies may have higher incomes than others? (List on the board.) NEWSPAPER ACTIVITY the newspaper and tab articles. (Guide students to pre-selected articles in various sections, if necessary.) DISCUSSION ASK: ■ What is the main economic activity in the countries in the articles you have located — mostly industry, agriculture or services? ■ Which of the workers is likely to produce more for each hour worked, and why? Describe the differences between agricultural and industrial production. EXPLAIN: ■ An increase in labor productivity (i.e., more output for each hour worked) leads to economic growth. ■ Increased productivity is achieved by encouraging the growth of industry and manufacturing, where the productivity is higher because industrial workers use more capital goods (machinery, equipment, etc.). ASK: How could the countries in these articles increase their productivity? EXPLAIN: The necessary capital needed for industrialization may come from savings, from borrowing, foreign investment or government investment (tax receipts), increasing exports or increasing the number of tourists. The revenues (and “foreign exchange”) from both of the latter can be used to buy capital goods. ■ Why are many poor countries predominantly raw material or “primary” producers? ➧ ➧ ➧ | nytimes.com/nie | (800) 631-1222 27
  29. 29. Global Economics With The New York Times LESSON PLAN 8 WHAT DETERMINES ECONOMIC GROWTH? ■ Are they predominantly raw material producers because of their comparative advantage — or historic pressures of colonialism? (Colonialism forced them to produce raw materials and food for the industrializing countries of Europe.) BACKGROUND NOTE: One obstacle to industrial development is what economists have called “path dependency.” This is a pattern of primary production and related institutions developed over a long period of time and very hard to change. This pattern was developed in colonial times during the periods of Globalization I and II as described in the Introduction. ASK: Based on what we have discussed, what economic factors have made it possible for you to enjoy the possessions and activities on your list? EXTENSION/HOMEWORK ACTIVITIES Assign. Establish due dates. ■ Direct students to write an essay with supporting facts in the style of The New York Times Op-Ed page on the topic “How can a third world country best improve its economy?” ■ Assign students to prepare a chart comparing the U.S. economy with those of developing nations — illustrated with appropriate headlines from The New York Times. | nytimes.com/nie | (800) 631-1222 28
  30. 30. Global Economics With The New York Times LESSON PLAN 9 FREE TRADE AND DEVELOPMENT The Impact of Nafta OBJECTIVES: At the end of this lesson, students will be able to draw conclusions in writing and orally about: ● The arguments for and against free trade between the United States and Mexico. ● The pros and cons of Nafta. MATERIALS/ PREPARATION ● Today’s New York Times, one per student. ● Scan today’s Times for articles and opinion pieces on the topic of the North American Free Trade Agreement, “sweatshops,”labor migration, loss of jobs, impact of trade or shift of manufacturing activity. Mark those specifically relating to Mexico. ● Copies of Lesson 9 Worksheet, one per student. ● Download data on wages and foreign investment in Mexico resulting from Nafta, and make copies for students (or use overhead projector): www.epinet.org ● Download data on Mexico and make copies for students (or use overhead projector: http://dir.yahoo.com/Regional/ Countries/Mexico/Social_Science/ Economics/Statistics_and_Indicators/ ● Download (or use from Lesson 5) tables from the United Nations Human Development Report for the latest available year. (Note: change the year in the Web site address for the latest year.) Human Development Index: www.undp.org Gender Development Index: www.undp.org Gender Empowerment Index www.undp.org ● Make copies for students or use overhead projector. ● Write Nafta on the board. WARM UP TELL YOUR CLASS: Today we will examine how countries develop ways to raise their standard of living. As we do this, think about what kind of working conditions you want for yourself and for your family. ASK: ■ What does Nafta stand for? ■ What is Nafta all about? EXPLAIN: The North American Free Trade Agreement (Nafta) has raised many controversial issues. The issues include labor migration, loss of jobs, impact of trade, “sweatshops” and the shift of manufacturing activity. NEWSPAPER ACTIVITY ■ Distribute today’s New York Times. ■ Distribute the Lesson 9 Worksheet and review Part A with students. Guide students to pre-selected articles, if necessary. ■ Discuss the economic issues raised in the articles as they relate to Nafta. (Note: not every article will mention Nafta specifically. Use articles from clipping folders, too.) ROLE PLAY ■ Distribute the downloaded data sheet on Mexico showing human development and income by state. ■ Allow time for reading. ■ Discuss what the data means. ■ Assign Part B on Worksheet. Count off the class, from one to seven. Direct students to write out the pros and cons for the assigned role. ■ Ask for volunteers to perform the roles. ■ Direct balance of class to listen for issues missing from each presentation. ASK: If you led the government in a country with a low per capita income, what would you do to improve the economy? (Refer to the complex nature of the arguments on all sides of the Nafta debate and the difficulty of arriving at a conclusion.) EXTENSION/HOMEWORK ACTIVITIES ■ Assign Part C on Worksheet as homework. Establish due date. | nytimes.com/nie | (800) 631-1222 29
  31. 31. LESSON 9 Global Economics With The New York Times WORKSHEET FREE TRADE AND DEVELOPMENT The Impact of Nafta NAME OF STUDENT_______________________________________ A Scan today’s New York Times and locate articles or opinion pieces dealing with these Nafta issues: ■ labor migration. ■ loss of jobs. ■ impact of trade. ■ “sweatshops.” ■ the shift of manufacturing activity. DUE DATE:_________________________________ B ROLE PLAY (Teacher will assign parts.) Write out a three-minute speech on the role you are assigned from the list below. Your speech should describe the pros and cons of your situation. Begin with, “I am (role) and here is my situation.” Refer to all the issues in Part A. 1) An American factory owner operating in the maquiladoras (assembly plants in a free trade zone on the U.S. border that employ Mexican workers and make goods for export to the United States.) 2) A worker in the factory. 3) A migrant agricultural worker in a California vineyard. 4) A Mexican farmer. 5) An American automobile worker. 6) A critic of immigration. 7) A day laborer working in the Eastern part of the United States. DUE DATE:_________________________________ C Select a country somewhere in the world that Nafta affects. Collect clippings from The New York Times and other sources, then write an analysis. Use as a model an article labeled “News Analysis” in The New York Times. DUE DATE:_________________________________ | nytimes.com/nie | (800) 631-1222 30
  32. 32. Global Economics With The New York Times LESSON PLAN 10 UNDERSTANDING MAJOR INSTITUTIONS OF GLOBALIZATION The World Bank The International Monetary Fund (I.M.F.) The World Trade Organization (W.T.O.) OBJECTIVES: At the conclusion of this lesson, students will be able to write and discuss analytically the I.M.F., World Bank and World Trade Organization. WARM UP ASK YOUR CLASS: MATERIALS AND PREPARATION ● Today’s New York Times, one per student. ● Times archive article on the I.M.F. in Indonesia, included in this guide (for use with overhead projector or copies for students). ● Write the word “globalization” on the board. ● Scan today’s Times for articles and opinion pieces on the I.M.F., World Bank and World Trade Organization. Point to the word “globalization” on the board. ■ Are you wearing anything that was made in another country? ■ How do you know it was made elsewhere? ■ Do you have anything else in your home that was produced outside of the United States? ■ Why did you buy these foreign-made products? ASK: What does this word mean? ■ Record answers on the board. ■ Add to the list any important concepts not contributed, such as the I.M.F., World Bank and W.T.O. (Circle these.) ASK: What do you know about these institutions? (When were they established, what are their main functions, how they are funded, what policies do they promote?) NEWSPAPER ACTIVITY ■ Distribute today’s New York Times. ■ Direct students to scan the newspaper and clip articles on the I.M.F., World Bank and W.T.O. DISCUSSION ■ Present the archive article on Indonesia from this guide. ■ Ask students to find in the article key words that are examples of how the I.M.F. worked in that country at that time. ASK: What other examples can you give from today’s news articles that describe how these institutions function? (For additional practice in analyzing the role of these institutions, use clippings from student files.) EXTENSION/HOMEWORK ACTIVITIES Assign and establish due dates. #1 - Assign students to review their clipping folders and create a chart listing the pros and cons of these institutions, illustrated with New York Times headlines. (This issue is further discussed in Lesson 14.) #2 - Assign students to write an essay summarizing and taking a position on the roles of these players in globalization, in the style of the Op-Ed page of The New York Times. #3- Assign students to write an analysis in the style of an article labeled “News Analysis” in The New York Times. | nytimes.com/nie | (800) 631-1222 31
  33. 33. Global Economics With The New York Times LESSON PLAN 11 RICH AND POOR COUNTRIES Can Foreign Aid and Foreign Investment Help? OBJECTIVES: At the conclusion of this lesson, students will be able to produce a visual or written analysis of: ● The main purposes of foreign aid and foreign investment. ● The arguments for and against foreign aid and investment. ● The size of foreign aid and investment flows from the rich countries to the poorer ones and their impact. WARM UP ASK YOUR CLASS: TOOLS AND PREPARATION ● Today’s New York Times, one per student. ● Scan The Times and tab articles about foreign aid and foreign investment. ● Copies of Lesson 11 Worksheet on Foreign Aid and Investment, one per student. ● Download World Bank data on foreign investment and foreign aid: www.worldbank.org/ data/databytopic/ databytopic.html ● Download United Nations data on foreign aid and investment: www.undp.org ● Copies of downloaded data tables, one per student (or use overhead projector). ● Write the words “foreign aid” and “foreign investment” on the board. ■ Examine different countries. ■ List pros and cons on the board. ■ When you need money, where do you go? ■ What do you do if that source is empty? ■ How many sources do you have to raise capital? ■ Where do countries go for capital? (Review possible sources of capital discussed in Lesson 5.) NEWSPAPER ACTIVITY ■ Distribute copies of The New York Times. ■ Distribute Lesson 11 Worksheet and review with students. Allow time to complete at least one article analysis. DISCUSSION ASK: Do these pros and cons always apply to all countries? EXTENSION/HOMEWORK ACTIVITIES Assign students to continue clipping articles on foreign aid and foreign investment for their folders. Establish due dates for these assignments: ■ Prepare a chart, illustrated with material clipped from The Times, explaining the main purposes of foreign and foreign investment. ■ Write an essay in the style of the Op-Ed columns in The Times with arguments for or against foreign aid and foreign investment. Support with material researched in The Times and other sources. (Direct students to study the Op-Ed page columns as models.) ■ Write an analysis in the style of New York Times news analysis articles on the size of foreign aid and investment flowing from the rich countries to the poorer ones, and the impact these funds have. Include a graph or chart in the analysis. | nytimes.com/nie | (800) 631-1222 32
  34. 34. LESSON 1 1 Global Economics With The New York Times WORKSHEET RICH AND POOR COUNTRIES NAME OF STUDENT_______________________________________ BACKGROUND INFORMATION Foreign aid consists of loans or grants made by rich countries to poorer ones to assist their development. Foreign investment is the process of setting up businesses in a foreign country. Both are important aspects of globalization, as they integrate economies in the global economic system. There is much disagreement about how aid and investment affect low-income economies. ASSIGNMENT: Scan today’s New York Times for articles about aid and foreign investment. Complete the list below. Headline of article____________________________________________________________________ Date____________________Section/Page_____________________Country______________________ FOREIGN AID Pros:_______________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ Cons_______________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ FOREIGN INVESTMENT Pros:_______________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ Cons_______________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ Repeat this analysis with another article from your clippings file, on another sheet of paper. | nytimes.com/nie | (800) 631-1222 33
  35. 35. Global Economics With The New York Times LESSON PLAN 12 THE IMPACT OF GLOBALIZATION ON CULTURE OBJECTIVES: At the conclusion of this lesson, students will be able to write analytically about: ● The differences between “traditional” and “modern”* values and the impact on culture. ● How globalization has an impact on different cultures. ● The impact of tourism on local cultures. ● The pros and cons of globalization. *Note to teacher: The term “modern values” tends to be interpreted as Western values. Be sure to clarify with students. TOOLS AND PREPARATION ● Today’s New York Times, one per student. ● Copies of Lesson 12 Worksheet, one per student. ● The archive article from The New York Times on stone-age Indonesians (see Appendix). Make copies or use overhead projector. ● Write the word “culture” on the board. WARM UP ASK YOUR CLASS: What is your definition of a country’s culture? ■ Record responses on the board. ■ Discuss differences and similarities in students’ definitions. ■ Write on board the definition of culture: “The ideas, customs and arts of a particular society.” TELL YOUR CLASS: Today’s lesson will deal with the impact of our culture on cultures in other parts of the world. NEWSPAPER ACTIVITY ■ Distribute The New York Times. ■ Distribute Lesson 12 Worksheet and review with students. Assign Activity A. DISCUSSION ■ Write headings for two columns on the board: Traditional Culture, Modern Culture. ■ Ask students to contribute examples from their study of The Times and indicate which column they belong in. ■ Introduce archive article on a “Stone-Age” Indonesian tribe. Direct students to read and underline words relating to traditional culture and circle words relating to modern culture. Allow time for reading. ■ Check for understanding of “traditional” culture and “modern” culture. ■ Discuss words underlined and circled. ASK: ■ What are the differences between a traditional culture and a modern culture? ■ When traditional and modern cultures clashed, in this article was one favored over another? How? ■ What are the main ideas in this article? ■ Does the writer have a point of view? If so, what is it? (Ask for examples from the article.) ■ Do you agree or disagree with his point of view, and why? EXTENSION/HOMEWORK ACTIVITIES Assign (or have students choose) learning activities B-E on Lesson 12 Worksheet. Establish due dates. | nytimes.com/nie | (800) 631-1222 34
  36. 36. LESSON 12 Global Economics With The New York Times WORKSHEET THE IMPACT OF GLOBALIZATION ON CULTURE NAME OF STUDENT_______________________________________ A Examine all sections of The New York Times to find articles, pictures or ads that illustrate different cultures. (These might include articles on families or rural life, illustrations of dress, the arts, sports, the “Journal” article on Page A4.) ■ Mark the appropriate items. ■ Be prepared to tell whether this is an example of a “traditional” or “modern” culture. (See Exercise D below for definition.) List section/page numbers here for easy reference.__________________________________________ ___________________________________________________________________________________ DUE DATE FOR ACTIVITY A:_________________________________ B How does culture travel? Clip articles from The Times that show the impact of American culture on local cultures in other parts of the world. (Note: businesses such as McDonald’s and the Gap and American television shows can be found all over the world – this is one aspect of globalization.) DUE DATE FOR ACTIVITY B:_________________________________ C Locate examples in The New York Times of different cultures interacting with each other here in the United States Answer these questions: DUE DATE FOR ACTIVITY C:_________________________________ ■ What has globalization offered the United States? ■ What are some of the characteristics of different ethnic and cultural groups in the United States? D ■ How do different cultures in the United States affect each other? ■ Do all of the cultures enjoy the same respect? ■ Do any of the cultures dominate others? If so, how? E Write an essay in the style of a Times Op-Ed column that discusses a conflict between a “traditional” culture (one that is not influenced by outside forces) with a “modern” culture ( one that has been influenced by outside forces). Study columns on the Op-Ed page as models. From your clippings, select a country. Make a list of the positive and negative impact of your visiting that country based on what you would spend money on, the local people you would meet, and the possible impact on the local culture. Explain how your visit would contribute positively and/or negatively to globalization. DUE DATE FOR ACTIVITY D:_____________ DUE DATE FOR ACTIVITY E:__________________ | nytimes.com/nie | (800) 631-1222 35
  37. 37. Global Economics With The New York Times LESSON PLAN 13 GLOBALIZATION AND “SWEATSHOPS” OBJECTIVES: At the conclusion of this lesson, students will be able to: ● Prepare a chart with a map showing the goods that are produced by low-wage workers (many of them young women) in other parts of the world and consumed here by Americans. ● Write a one-page summary of the reasons that wages are low in these economies. ● Write an essay on how the situation of these workers might be improved. WARM UP ASK YOUR CLASS: TOOLS AND PREPARATION ● Today’s New York Times, one per student. ● Copies of Lesson 13 Worksheet on low-income economies, one per student. ● Scan today’s Times for articles about income inequality, poverty and world trade. ● Download tables from the World Bank World Development Report (as used in Lesson 2). Make copies for students or use overhead projector: www.worldbank.org NEWSPAPER ACTIVITY ■ What is a “sweatshop”? (Background note: The definition of “sweatshop” is tricky. The dictionary definition is that of a factory in which employees (who are often young women) work long hours for low wages in poor working conditions. Yet “poor” is a relative term, and it’s useful to discuss this. Have students collect and examine articles about protests of sweatshops in The Times for details on who is protesting and why.) ■ Who defines what a sweatshop is? (The person who is working in it? The market? The American Labor Secretary? Others?) ■ Do you know where there are “sweatshops”? (Be sensitive to the fact that some students may have family members or friends who work in “sweatshops” either in the United States or abroad.) ■ Why do workers work in “sweatshops”? ■ Distribute today’s New York Times. ■ Distribute or project the World Development Tables. ■ Distribute Lesson 13 Worksheet and review steps in Assignment A with students. DISCUSSION Discuss comparisons of data on tables on World Development with information in New York Times articles. ASK: What are some examples of “sweatshops” in American history? (Among the most famous was the Triangle Shirtwaist factory in New York City, where conditions contributed to the death of 146 young women during a catastrophic fire in 1911. See American history textbooks.) EXTENSION/HOMEWORK ACTIVITIES ■ Assign Activity B on Worksheet. Establish due date for individual student responses regarding “demands” for workers. ■ Then, establish collaborative groups. Direct each group to discuss and write down the points for the assigned “demand.” ■ Duplicate each list for the whole class to discuss each point. ■ Appoint an editorial staff to prepare the final document incorporating all points. ■ Distribute the final “Charter,” then assign all students to write an editorial in the style of The New York Times urging adoption or not. ■ Submit the “Charter” and the best editorials to the school’s student newspaper. Note: See chapter 6, pages 126-130 on “sweatshops” in “Thunder from the East: Portrait of a Rising Asia,” Nicholas Kristof and Sheryl WuDunn, (two Pulitzer-Prize-winning ➧ ➧ ➧ | nytimes.com/nie | (800) 631-1222 36
  38. 38. Global Economics With The New York Times LESSON PLAN 13 GLOBALIZATION AND “SWEATSHOPS” New York Times reporters), Alfred A. Knopf, a division of Random House, Inc., 2000. EXTRA EXTENSION ACTIVITY: Conduct a role-play of the sweatshop issue. Roles include a worker with a family to support through school, a factory manager in the foreign country, a manager at an American company buying the goods produced in the “sweatshop,” an American consumer, a protesters, and others important to the issue. Students who are members of the audience write up the role-play as a report for the student newspaper. | nytimes.com/nie | (800) 631-1222 37
  39. 39. LESSON 13 Global Economics With The New York Times WORKSHEET GLOBALIZATION AND “SWEATSHOPS” NAME OF STUDENT_______________________________________ A. LOW-INCOME ECONOMIES 1) Scan The New York Times for articles that report income inequality, poverty and world trade. 2) Using the World Development Tables (www.worldbank.org — go to links on data and data by country), identify countries with low per-capita incomes (less than $1,200 a year). Record them below. 3) Next to the names of the countries, record some goods that you know are imported into the United States from these countries, such as clothing and computers. 4) Compare your reading of Times reports with the data in the World Development Tables. Try to determine if these goods are produced in “sweatshops.” COUNTRY LOW-INCOME ECONOMIES PER CAPITA INCOME IMPORTS TO U.S. ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ B. INTERNATIONAL CHARTER FOR WORKERS 1) Using examples from your reading of The New York Times, make a list of working conditions that need changing:_____________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ 2) State demands for change:____________________________________________________________ ________________________________________________________________________________ 3) Where should these demands be directed?_________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ | nytimes.com/nie | (800) 631-1222 38
  40. 40. Global Economics With The New York Times LESSON PLAN 14 GLOBALIZATION: WHAT ARE THE ALTERNATIVES? OBJECTIVES: At the conclusion of this lesson, students will be able to write an opinion column on the topic of globalization incorporating facts from news reports. WARM UP ASK YOUR CLASS: “Would you rather live in a country with or without global trade?” TOOLS AND PREPARATION ● Today’s New York Times, one per student. ● Scan The Times for articles and opinion pieces about globalization. ● Student Clippings Folders. ● Copies of Lesson 14 Worksheet, one per student. (News reports contain facts; opinions that incorporate facts are published on the editorial and Op-Ed pages of The New York Times.) ■ Are facts and opinion ever mixed? (Give examples.) ■ Discuss points of view. ASK: ■ Where in the newspaper do you find news reports and where do you find opinion? NEWSPAPER ACTIVITY ■ Distribute today’s New York Times. ■ Divide class into collaborative groups. ■ Distribute Lesson 14 Worksheet and review with students. Note: List A could include debt forgiveness, trade, tourism, loans, foreign investment. List B could include redistribution of income, government spending, less promotion of tourism and government policies that would produce more gender equity. DISCUSSION ASK: ■ Do these lists tend to support less integration in the global economy or not? (Point to the trade-off that may be involved in increased self-sufficiency — slower rates of growth might be traded for increased autonomy.) ■ Should rich countries of the world do more to help the poor countries, as critics of globalization have argued? If so, how? (Forgiveness of their external debt, control over capital movements, international agreements on wages and working conditions, providing medicine and technology at more affordable prices, etc.) ■ Which of these policies make sense to you? ■ What obstacles stand in the way of implementing them? EXTENSION/HOMEWORK ACTIVITIES ■ Assign from the Worksheet. ■ Establish due dates. (Note: The article on the Philippine economy in the Appendix is a useful model for Activity #3. See also “Ask a Reporter” on The Learning Network: www.nytimes.com/learning) | nytimes.com/nie | (800) 631-1222 39
  41. 41. LESSON 14 Global Economics With The New York Times WORKSHEET GLOBALIZATION: WHAT ARE THE ALTERNATIVES? NAME OF STUDENT_______________________________________ LIST CHANGES TO HELP LOW-INCOME COUNTRIES DEVELOP. LIST A - Changes That Require Outside Trade or Economic Contact____________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ LIST B - Changes That Can Be Accomplished Without Outside Contact__________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ■ Scan The New York Times and your clippings folders for examples of both approaches. Label the articles A (with outside contact) or B (without outside contact). EXTENSION/HOMEWORK ASSIGNMENTS #1 Choose one of the topics below and write an essay in the style of the Op-Ed page of The New York Times. Study Op-Ed page columns and articles as models for your writing. Use facts from your reading to support your conclusions or opinions. a) The impact of global trade and investment on American workers and on workers of one of its trading partners. b) The impact of global trade and investment on income inequality. c) The impact of global trade and investment on the environment in poor countries. #2 Select three articles from today’s New York Times and/or your clippings file that have made the biggest impact on you. Do you feel more optimistic or more pessimistic about globalization? Explain your views in writing an Op-Ed style column. Study the Op-Ed page of The Times for models. #3 Assume you have been hired as an economics correspondent for The New York Times. Select a country and write a news analysis on globalization and its effects on that country. Research the country’s history and current pattern of economic development. List key people to interview in that country and questions to ask each source based on economic development data and your reading. | nytimes.com/nie | (800) 631-1222 40

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