International Trade Lesson Plan
I.
Topic: International Trade, Economic Development & Globalization
A. Objective: is to help the students understand the costs and benefits of internat
ional trade by viewing the issue from a domestic and
international perspective. The students will gain a better understanding of the
global economic environment by reading the chapters
pertaining to international economics. The following topics should be covered
in the class discussion or lecture: international trade,
balance of payments, exchange rates & trade deficits and economic develop
ment. The students will do a 2 page APA
format paper of the concept by applying the material in the videos to the chapt
er reading material.
1. Discuss gains from trade and how it pertains to international trade and the
pattern of trade we see in the world. Discuss
outsourcing and its relationship to cost differentials across nations for the f
actors of production. Have the students write a 2 page
APA format paper outlining the pros and cons of outsourcing by view the f
ollowing videos:
 http://www.youtube.com/watch?v=7njIlZ2xYq0
 http://www.youtube.com/watch?v=e5wODB9hgRw
i. Make sure the students answer the following questions
about outsourcing and economic development in the 1-2
page paper or outline on international trade and outsourcing:
 What is outsourcing?
 What is fueling outsourcing from a global
perspective?
 Is outsourcing good or bad for from a domestic and
global perspective?
 How do some countries try to deal with outsourcing—
discuss protective employment policies of some
European countries?
2. Discuss globalization and its impact on the global economy by having the
students do a 2 page APA paper on the globalization videos. Have the stu
dents view the following videos and apply the at least 2 of the economic c
oncepts in the videos to a current real world globalization issue pertaining
to a country in the world.
 http://fora.tv/2007/07/06/Globalization_and_the_Environment#com
ments_section
 http://www.youtube.com/watch?v=LL7KYCqOezs
 http://www.youtube.com/watch?v=1OAQNKcUMjs
Bonnie Oliver, Valencia College, (2014), Principles of Macroeconomics

http://www.youtube.com/watch?v=sp7vsTW9FTQ
i.
Make sure the students answer the following questions in
their globalization paper:
 What is the difference between globalization and the
global economy?
 What impact has globalization had on the global
economy in terms of economic development and job
creation?
 What impact has globalization had on environment in
some countries?
 What impact has globalization had on the culture of
many developing and developed countries?
 Do you think globalization is good or bad and why?
Quiz Suggestion: It would be helpful to have the students complete a 10 question true/
false or multiple choice quizzes pertaining to the 3 chapters used for this assignment
section. The quizzes should come from the chapter on international trade, economic
development and balance of payment chapters. After the students have completed the
quizzes and completed the in class or written assignments along with the in class
lecture discussions, the students should be ready to take the section exam. The
professor should thoroughly cover the 3 international chapters along with the assignments in the lesson outline. The material covered in this lesson plan can be used to
help the students obtain a better understanding of the economic topics.
The professor has discretion with the questions they want to use on the quizzes. The
primary goal is to make sure that the 10 question quiz comes from the chapter readings
and encourages the students to read the textbook so that the students will have a better
understanding of the in class discussion and written exercises pertaining to the videos
used to reinforce the concepts. I would recommend that the students take the chapter
quizzes prior to doing the video written assignments and in class discussion assignment
s. This methodology will provide the professor with the flexibility to incorporate the
economic concepts into the last section exam on international trade if they chose to do
so. Portions of this lesson plan may also be used if a professor only wants to cover
some of the topics. The section exam will cover these concepts if the exam covers
international trade and economic development or developing countries. Any macroeconomic textbook section on international trade will complement this material.
Sample Quizzes: The following are short sample quizzes students can be given after
they have read the chapters on international trade, economic development and have
viewed the videos pertaining to the quiz topic. These quizzes can be given out in class
or online in Blackboard. The students should be given 20 minutes per quiz.
Bonnie Oliver, Valencia College, (2014), Principles of Macroeconomics
True/False Quiz on Economic Development & Less Developed Countries
1. Answer: False
A country with a high GDP per capita can be classified as an industrially advanced country (IAC) regardless
of its industrial development.
2. Answer: True
A country with a high GDP per capita is classified as an industrially advanced country (IAC).
3. Answer: True
In general, GDP per capita is highly correlated with alternative measures of quality of life.
4. Answer : False
A country cannot develop without a large natural resource base.
5. Answer: True,
Political instability is a deterrent to long-term private investment.
6. Answer: True
The vicious circle of poverty is the trap in which the LDC is too poor to save and therefore it cannot invest
and remains poor.
7. Answer: True
Receipt of foreign aid permits less-developed countries to move to a point outside their production
possibilities curve
8. Answer: False
The World Bank is the agency of the U.S. State Department that is in charge of U.S. loans to foreign
countries
9. Answer: False
The main purpose of the International Monetary Fund is to manage and distribute U.S. foreign aid.
10. Answer: True
If population grows faster than GDP, then per capita GDP must fall
True/False Quiz on International Trade
1. Answer: False
If free trade is opened between two countries, then one country must gain at the other country's expense.
2. Answer: True
A country has a comparative advantage in producing a good when it has the lowest opportunity cost of
producing that good.
3. Answer: True
It is possible for a nation to have an absolute advantage in the production of a product, but not a
comparative advantage in the production of the same product
4. Answer: False
Protectionist policies such as tariffs and quotas are beneficial to the nation imposing those trade barriers.
5. Answer: True
According to the infant industry argument, a new domestic industry needs protection because it has higher
costs than established foreign competitors.
6. Answer: False
An increase in a nation's trade deficit occurs when that nation's exports rise and/or its imports fall.
7. Answer: True
A tariff will decrease the supply of the product.
8. Answer: False
Absolute advantage governs the potential for gains from trade
9. Answer: False
A country should export the goods in which it has an absolute advantage.
10. Answer: True
International specialization and trade according to the principle of comparative advantage is mutually
beneficial for all economies involved.
Bonnie Oliver, Valencia College, (2014), Principles of Macroeconomics