Lesson Plan
Course Title: Global Business
Session Title: Lesson 1.7-Trade and Investment Policies
Performance Objective (LSI Quadrant 1-Why are we doing this?):
The purpose of this lesson is to give students a basic knowledge in understanding the role of
foreign aid, the goals and functions of the GATT and NAFTA, import and export restrictions, and
time to research case studies and issues on global trade.
Approximate Time:
Two days
Specific Objectives (LSI Quadrant 1-Why are we doing this?):
SWBAT (Student Will Be Able To…)
1.6A-Understand the role of foreign aid in global trade and investment.
1.6B-Explain the goals and function of the General Agreement on Tariffs & Trade and the North
American Free Trade Agreement.
1.6C-Identify the major ways in which imports are being restricted and give reasons for controlling
exports.
1.6D-Research case studies and issues on global trade using appropriate online technology.
Terms:
Foreign Aid – Foreign official development assistance. For the donee country, it represents the net
inflow of foreign funds. For the donor country, it represents the gross outflow of public funds.
Global Investment – Money committed or property acquired for future income on a global scale.
Global Trade – The worldwide business that involves making and collecting payments for
transactions in goods and services and transporting them to interested markets. The overall
reduction of global trade barriers and the ease of advertising to foreign markets via the Internet
have increased the potential for a company doing business outside one's home country.
GATT – UN agency for promotion of free trade between signatory countries (called contracting
parties). Formed in 1947 in Geneva, its objective was to counter the devastating effect of
protectionist measures (such as the US Smoot-Hawley tariff that raised import duties from 39
percent to 53 percent) supposedly intended to mitigate impact of the great depression. GATT
instituted a rule-based multilateral trading system for trade in both goods and services through a
series of negotiations (called 'rounds'). It succeeded in achieving reduction in the average tariff on
manufactured goods from 40 percent to about 5 percent in the industrialized nations and in
obtaining varying degrees of promised reductions from less developed nations. Its approach was
based on two non-discriminatory principles, the (1) Most favored nation and national treatment and
(2) Reciprocity. It worked to eliminate all non-tariff barriers and import quotas, and advocated use
of countervailing duties to fight dumping and to negate the effects of subsidies. On January 1,
1995, after the culmination of Uruguay Round, GATT was replaced by World Trade Organization
(WTO).
NAFTA – Trilateral treaty among Canada, Mexico, and the US, established in 1994 to remove
import duties (tariffs) and non-tariff barriers within ten years for most types of goods, and within
five more years for others. While the total consumer population (370 million) of NAFTA is slightly
smaller than that of European Union (EU), its combined output ($6 trillion) is 20 percent higher.
This agreement also addresses concerns relating to environment, health, and natural resources.
Copyright © Texas Education Agency, 2012. All Rights Reserved.
1
Imports – Products of foreign origin brought into a country.
Exports – Products of local origin sold to other countries.
Restrict – To confine or keep within limits, as of space, action, choice, intensity, or quantity.
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.
1.7 The student identifies the importance of different trade and investment policies controlling
trade.
1.7A-Understand the role of foreign aid in global trade and investment.
1.7B-Explain the goals and function of the General Agreement on Tariffs & Trade and the
North American Free Trade Agreement.
1.7C-Identify the major ways in which imports are being restricted and give reasons for
controlling exports.
1.7D-Research case studies and issues on global trade using appropriate online technology.
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: Customs Broker
O*Net Number: 13-1199.03
Reported Job Titles: Customs Broker, Import Manager, Customs Compliance Director
Tasks: Classify goods according to tariff coding system, prepare and process import and export
documentation according to customs regulations, laws, or procedures, and pay or arrange for
payment of taxes and duties on shipments.
Soft Skills: Active listening, complex problem solving, and reading comprehension.
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.
Copyright © Texas Education Agency, 2012. All Rights Reserved.
2

Teacher will have assignments and website information ready to distribute to students.
References:
www.dictionary.com
www.businessdictionary.com
textbook
http://foreignassistance.gov/FAQ.aspx
http://www.fas.usda.gov/itp/policy/nafta/nafta.asp
http://www.cbp.gov/xp/cgov/travel/vacation/kbyg/prohibited_restricted.xml
http://www.fas.usda.gov/itp/ofsts/us.html
http://www.cbp.gov/linkhandler/cgov/newsroom/publications/trade/iius.ctt/iius.pdf
http://www.bis.doc.gov/licensing/exportingbasics.htm
Instructional Aids:
 Lesson 1.7- Presentation-Trade and Investment Policies
 Access to Internet
 Access to businessdictionary.com and dictionary.com
Materials Needed:
Lesson 1.7 Presentation-Trade and Investment Policies
Lesson 1.7-Formal Assessment
Lesson 1.7-Formal Assessment Key
Equipment/Software Needed:
 Projection unit
 Instructor computer
 Internet access
 Electronic system for taking notes
Learner Preparation:
Purpose of Assignment and Need to Know Terms - Snapshots of slides below:
Copyright © Texas Education Agency, 2012. All Rights Reserved.
3
Introduction
Introduction (LSI Quadrant I-Why are we doing this lesson?):
ASK: Are you aware of all the ‘red tape’ it takes to get a product or service in your hands if it isn’t
made in the US?
ASK: Do you know why there is so much ‘red tape?’
ASK: Did you know the US government provides financial aid to other countries?
ASK: How do you feel about the US providing financial aid to other countries?
SAY: We’re going to learn over the next couple of days about why there is so much red tape,
some organizations that help regulate imports and exports, and do a little research on global
trade.
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. Instruction – Role of Foreign Aid in Global
Investment
B. Instruction – Goals and General Function
of GATT
C. Instruction – Major Ways Imports are
Being Restricted
D. Instruction – Reasons for Controlling
Exports
Slides 4-8 in
presentation.
Copyright © Texas Education Agency, 2012. All Rights Reserved.
4
Verbal
Linguistic
III. Independent Practice
A. Case Studies – Global Trade
Slide 9 in presentation.
IV. Review
Slide 10 in presentation.
V. Extensions
Slide 11 in presentation.
VI. Formal Assessment
Use provided
assessment documents.
Logical
Mathematical
Visual
Spatial
Musical
Rhythmic
Bodily
Kinesthetic
Intrapersonal
Interpersonal
Application
Copyright © Texas Education Agency, 2012. All Rights Reserved.
5
Naturalist
Existentialist
Introduction-(LSI Quadrant III-How are we going to do this?):
Purpose of Assignment and Need to Know - Snapshots copied and pasted below:
Guided Instruction and Independent Practice (LSI Quadrant III-How are we going to do
this?):
Instruction and Independent Practice - 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
• Case Studies
• Notes
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:
Copyright © Texas Education Agency, 2012. All Rights Reserved.
6
Evaluation
Informal Assessment (LSI Quadrant III):
Check one or all of the following:
• Need to Know Terms
• Case Study Research items
• Notes taken during class lecture/discussion
Extension
Extension/Enrichment (LSI Quadrant IV-Extending the lesson):
Extensions - Slide copied and pasted below:
Copyright © Texas Education Agency, 2012. All Rights Reserved.
7
Formal Assessment (LSI Quadrant III-How are we doing this?)
Lesson 1.7 Formal Assessment (provided)
Lesson 1.7 Formal Assessment Key (provided)
Copyright © Texas Education Agency, 2012. All Rights Reserved.
8
Lesson 7 - Trade and Investment Policies
Formal Assessment
Objective: To determine your level of understanding of the role of foreign aid in global
trade, the goals and function of the GATT and NAFTA, the major ways imports are
restricted and exports are controlled.
Please answer the following questions (be specific and detailed).
1.
2.
3.
4.
What is the role of foreign aid in global trade?
What are the goals and function of the GATT and NAFTA?
What are the major ways imports are restricted and exports are controlled?
Define the term global investment.
Each of the first three questions will be worth 30 points and the fourth question will be worth 10
points.
Copyright © Texas Education Agency, 2012. All Rights Reserved.
9
Lesson 7 - Trade and Investment Policies
Formal Assessment
Objective: To determine your level of understanding of the role of foreign aid in global
trade, the goals and function of the GATT and NAFTA, the major ways imports are
restricted and exports are controlled.
Please answer the following questions (be specific and detailed).
5. What is the role of foreign aid in global trade? To provide the unilateral transfers of U.S.
resources (funds, goods, and services) by the US Government to or for the benefit of foreign
entities (including international and regional organizations) without any reciprocal payment or
transfer of resources from the foreign entities. Foreign assistance is not just confined to funds or
commodities, it also includes the provision of technical assistance, capacity building, training,
education, and other services, as well as the direct costs required to implement foreign
assistance.
6. What are the goals and function of the GATT and NAFTA?
a. GATTi. promote world trade through negotiation
ii. make world trade secure
b. NAFTAi. ensure open markets
ii. ensure fair competition between companies in Canada, Mexico, and the United
States
7. What are the major ways imports are restricted and exports are controlled?
a. Import Restrictionsi. Specific items are restricted from being imported
ii. Government agencies are in place to monitor imports
iii. Specific standards have to be met by importers before allowing
iv. Taxing of imported goods
b. Export Controli. To protect the health and safety of workers
ii. To ensure products are safe to use
iii. To protect local businesses from foreign competition
iv. Political risks
8. Define the term global investment. Money committed or property acquired for future income
on a global scale.
Each of the first three questions will be worth 30 points and the fourth question
will be worth 10 points.
Rubric for short answer is on next page.
Copyright © Texas Education Agency, 2012. All Rights Reserved.
10
Copyright © Texas Education Agency, 2012. All Rights Reserved.
11