Lesson Plan
Course Title: Global Business
Session Title: Lesson 1.2 - Theories of Global Trade and Investments
Performance Objective (LSI Quadrant 1-Why are we doing this?):
The purpose of this lesson is to help students gain a basic understanding the theories of trade and
investments that are outlined in the scope and sequence.
Approximate Time:
Two days.
Specific Objectives (LSI Quadrant 1-Why are we doing this?):
SWBAT (Student Will Be Able To…)
1.2A-Explain the advantages of specialization.
1.2B-Identify the concept of comparative advantage.
1.2C-Distinguish between foreign direct investment (FDI) and foreign portfolio investment (FPI).
Terms:
Some of these terms were given in lesson 1.
Specialization – An agreement within a community, group, or organization under which the
members most suited (by virtue of their natural aptitude, location, skill, or other qualification) for a
specific activity or task, assume greater responsibility for its execution or performance.
Comparative Advantage – Occurs when a country specializes in the production of a good or
service at which it is relatively more efficient.
Absolute Advantage – Exists when a country can produce a good or service at a lower cost than
other countries.
Portfolio Investment – An investment in securities that is intended for financial gain only and does
not create a lasting interest in or effective management control over an enterprise.
Direct Investment – An investment that is made to acquire a lasting interest in an enterprise
operating in an economy other than that of the investor, the investor's purpose being to have an
effective voice in the management of the enterprise.
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1
Preparation
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the
activities may result in the elimination of any or all of the TEKS listed.
1.2 The student analyzes the theories of global trade and investments.
(A) Explain the advantages of specialization.
(B) Identify the concept of comparative advantage.
(C) Distinguish between portfolio investment (FPI) and direct investment (FDI).
Interdisciplinary Correlations:
English-English 1
 110.31(b)(1). Reading/Vocabulary Development. Students understand new vocabulary and
use it when reading and writing.
 110.31(b)(11). Reading/Comprehension of informational text/procedural texts. Students
understand how to glean and use information in procedural texts and documents.
Occupational Correlation (O*Net – www.onetonline.org/):
Job Title: Logistics Managers
O*Net Number: 11-3071.03
Reported Job Titles: Logistics Manager, Global Logistics Manager, Integrated Logistics
Programs Director
Tasks: Direct or coordinate comprehensive logistical or reverse logistical functions for product life
cycles including acquisition, distribution, internal allocation, delivery, recycling, reuse, or final
disposal of resources…Negotiate with suppliers or customers to improve supply chain efficiency or
sustainability…Negotiate transportation rates or services.
Soft Skills: Time management, active listening, and communicating effectively in writing.
Teacher Preparation:
 The teacher will review the terms in the outline, presentation slides, and any provided
materials to become familiar with the lesson.
 Teacher should locate and evaluate various resources and websites before the lesson.
 Teacher will have assignments and website information ready to distribute to students.
Copyright © Texas Education Agency, 2012. All Rights Reserved.
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References:
International Business (3E), Dlababy & Scott, Thompson Southwestern
http://www.youtube.com/watch?v=38hvvAzgXZY
http://www.diffen.com/difference/FDI_vs_FPI
www.businessdictionary.com
Instructional Aids:
 Lesson 1.2 Presentation-Theories of Global Trade and Investments
 Access to YouTube
 Access to businessdictionary.com
 Textbook
Materials Needed:
Lesson 1.2 Presentation-Theories of Global Trade and Investments
Lesson 1.2 Formal Assessment
Lesson 1.2 Formal Assessment Key
Equipment/Software Needed:
 Projection unit
 Instructor computer
 Internet access
 Electronic system for taking notes
Learner Preparation:
Discovery Activity - Slide snapshot copied and pasted below:
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3
Introduction
Introduction (LSI Quadrant I-Why are we doing this lesson?):
ASK: Can you define international business?
ASK: Do you personally feel international business is important?
ASK: Do you feel the United States thinks international business is important?
ASK: Can you currently explain the USA’s position on global international business by identifying
ways we encourage and discourage it?
ASK: Can you identify the advantages and problem areas for the United States firms wanting to
enter global business?
ASK: Do you think international business is a good thing for you personally? How about for your
family? For your state? Why or why not?
SAY: Today we’re going to learn what international business is, determine if you think it’s
important, determine if our American government considers it important, and determine if it’s
a good thing or bad thing for you personally, for your family, for your state, and for our
country.
Outline
Outline (LSI Quadrant II-What are we doing in this lesson?):
Instructors can use the presentation program/software, slides, handouts, and notes pages in
conjunction with the following outline.
MI
Outline
I. Introduction (Day 1)
A. Lesson Objectives.
B. Need to Know Terms. (See provided
presentation for details.)
Notes to Instructor
There is no provided
discovery activity for this
lesson.
II. Guided Instruction (Day 1)
A. Video explaining comparative advantage,
absolute advantage, and specialization.
B. Discussion questions.
C. Informal assessment on class
participation/note taking.
This video is posted on
YouTube and may
require requested
access.
III. Guided Instruction (Day 2)
A. Link to article explaining the difference
between FDI and FPI.
B. Discussion questions.
C. Informal assessment on class
participation/note taking.
This article is one of
many out there that
discuss the two types of
investments, so you may
find others that work
better.
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4
Verbal
Linguistic
IV. Review (Day 2)
Use presentation
template to highlight key
pieces of information.
V. Formal Assessment (Day 2)
Use provided
assessment documents.
Logical
Mathematical
Visual
Spatial
Musical
Rhythmic
Bodily
Kinesthetic
Intrapersonal
Interpersonal
Naturalist
Application
Introduction-(LSI Quadrant III-How are we going to do this?):
Purpose of Assignment and Need to Know - Snapshots copied and pasted below:
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5
Existentialist
Guided Instruction (LSI Quadrant III-How are we going to do this?):
Instruction and Discussion Questions - Slide snapshots copied and pasted below:
Informal Assessment (LSI Quadrant III-How are we going to do this?):
Check one or all of the following:
•
Need to Know terms
•
Class participation in discussion questions
•
Notes taken during class instruction
Summary
Review (LSI Quadrants I-Why are we doing this lesson? and IV-Extending the lesson):
Purpose of Assignment, Review, and Extensions - Slide snapshots copied and pasted below:
Evaluation
Informal Assessment (LSI Quadrant III):
Check one or all of the following:
•
Need to Know Terms
•
Discovery Activity
•
Notes taken during class lecture/discussion
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Formal Assessment (LSI Quadrant III, IV):
Test - Theories of Global Trade and Investments
Extension
Extension/Enrichment (LSI Quadrant IV-Extending the lesson):
Extensions - Slide copied and pasted below:
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Formal Assessment (LSI Quadrant III-How are we doing this?)
Lesson 1.2 Formal Assessment (provided)
Grading Rubric-Source: http://www.rcampus.com/rubricshowc.cfm?code=F4A59A&sp=yes&
Short Answer Test Assessment Rubric
Needs
No Answer
Improvement
0 pts
4 pts
Content
10 pts
No Answer
Did not answer
question.
Organization
10 pts (Answers
are clearly thought
out and
articulated.)
Writing
Conventions
10 pts (Spelling,
punctuation,
grammar, and
complete
sentences.)
No Answer
Did not answer
question.
No Answer
Did not answer
question.
Needs
Improvement
Answers are
partial or
incomplete. Key
points are not
clear. Question
not adequately
answered.
Needs
Improvement
Organization and
structure detract
from the answer.
Needs
Improvement
Displays over five
errors in spelling,
punctuation,
grammar, and
sentence
structure.
Adequate
6 pts
Adequate
Answers are
not
comprehensive
or completely
stated. Key
points are
addressed, but
not well
supported.
Quality
8 pts
Quality
Answers are
accurate and
complete. Key
points are
stated and
supported.
Exemplary
10 pts
Exemplary
Answers are
comprehensive,
accurate, and
complete. Key
ideas are
clearly stated,
explained, and
well supported.
Adequate
Quality
Exemplary
Inadequate
organization or
development.
Structure of
the answer is
not easy to
follow.
Organization is
mostly clear
and easy to
follow.
Well organized,
coherently
developed, and
easy to follow.
Adequate
Quality
Exemplary
Displays three
to five errors in
spelling,
punctuation,
grammar, and
sentence
structure.
Displays one to
three errors in
spelling,
punctuation,
grammar, and
sentence
structure.
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8
Displays no
errors in
spelling,
punctuation,
grammar, and
sentence
structure.
Lesson 1.2 -Theories of Global Trade and Investments
Formal Assessment
Objective: To determine your level of understanding of the advantages of
specialization, the concept of comparative advantage and your ability to distinguish
between direct investment and portfolio investment.
Please answer the following questions (be specific and detailed).
1.
2.
3.
4.
What are some advantages of specialization?
What is the concept of comparative advantage?
Distinguish between a foreign direct investment (FDI) and a foreign portfolio investment (FPI).
What are three terms and their definitions, from each chapter (1-4) that you learned?
Each of the first three questions will be worth 30 points and the fourth question will be worth
10 points.
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