The Many Facets of Free Trade
Lesson Plan for S6-S7
The World Trade Organisation and Its 6th Ministerial Conference
To familiarise students with some of the impacts of trade to an economy, this lesson plan is prepared to provide teachers with alternative
lesson designs to let students have opportunities to explore how different stake-holders of a country would be affected with freer trade.
(1st Draft)
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Lesson Plan for S6-7 Economics
Lesson C: The Many Facets of Free Trade
Time required: 80 minutes
Objectives:
Traditional economic trade theories emphasize mutual potential gains for all trading parties through trade liberalization. Students in their daily
experiences, however, may come across individuals or groups who hold different views.
After the lesson, students will be able to
1. identify the key issues in trade controversies among countries,
2. identify issues affecting different parties (e.g. consumers, workers, foreign producers, domestic producers) in multilateral trade agreements,
3. explain the costs to individuals/groups arising from trade liberalization, and
4. reflect on the assumptions underlying trade theories.
Pre-requisite knowledge: opportunity cost, comparative advantage, gains from trade with specialization and trade, terms of trade
Materials needed
1. TV programme: ‘The Shoes From China’ (Hong Kong Connection, 28-12-2004).*
2. In preparation for class discussion, students are expected to collect and review materials (e.g. newspaper articles, TV reports) about the
views and concerns of:
 individuals/groups in favour of free trade
*
Teachers are advised to seek prior permission from Radio Television Hong Kong, copyright owner of this programme, before showing it in class. Alternatively, the
programme can be borrowed from the RTHK if it is not put on the RTHK Website after December.
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
individuals/groups opposing trade liberalization
Steps
Student activities
Target content / Skills
1. Teacher reviews that voluntary trade benefits all
trading parties. Teacher asks students: "Does
trade liberalization benefit all?" Teacher then

Give some examples of
those who suffer from trade
liberalization.
 Refreshing of
pre-requisite knowledge
students need for the
tells students they will have a discussion on this
issue.

They may be able to tell
that some people are
affected more seriously
than others.
lesson’s activities.
 Develop in students an
awareness that some
people may not benefit
from the process of
trade liberalization.
Teacher plays the programme ‘The Shoes From
China’ (Hong Kong Connection, 28-12-2004) in
class.
 Watch the TV programme
and jot down how different
parties are affected in the
case presented.
2.
Remarks
 Develop in students an
awareness of the impact
of trade liberalization
on different types of
people.
 Extract information
from the video.
 Develop students’
note-taking skills.
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3.
Teacher divides the class into groups with each
group comprising four students, each playing the
role of
 Chinese shoe producer with goods exporting
to the Spanish /EU market
 Spanish consumer,
Based on the role they play, students
exchange their views with each other.
Each student in the group must:
(a) Explain to other group members
why he/she is in favour OR not in
favour of opening up the
 Develop students’
ability to systematically
present and support
their own ideas and
opinions, making use
of, if necessary,
 Spanish shoe factory owner, and
 Spanish worker in the footwear industry.
.
Spanish/EU footwear market to
foreign producers; and
(b) Write down the views and
concerns of the other three roles
in the group.
pre-requisite knowledge
acquired, to support
their arguments.
 Develop empathy for
parties who hold views
different from their
own.
 Develop students’
note-taking skills
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4.
Regroup the class according to the roles they play
in step 3. That is, the class is now divided into
four groups: “Chinese shoe producers”, “Spanish
consumers”, “Spanish shoe factory owners”, and
“Spanish workers in the footwear industry”. After
discussion, each group is required to draft a
Students discuss with other group
members and draft a proposal to the
teacher. In the proposal, students
should
(a) State the concerns of the party
which the group represents,
 Construction of
knowledge (e.g.
difficulties encountered
by different parties in
the process of trade
liberalization,
proposal to the teacher (students playing the role
of a mediator).
taking into consideration the
views and concerns of the other
parties collected in step 3; and
(b) Suggest solutions to avoid
conflicts similar to those shown in
the programme from happening in
future.
adjustment costs are
different for different
parties in the trade
liberalization process
etc.) not previously
learnt in a simple trade
model.
 Develop the skills of
resolving conflicting
interests among
different parties.
 Develop in students the
awareness of difficulties
encourntered in the
mediation process.
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Extension
(a) Based on the concerns presented by the different parties involved in trade liberalization, students reflect on the assumptions underlying the
simple trade model which is used to illustrate the potential gains from trade when countries specialize in the goods/service which they have
comparative advantage in and trade for the goods/service which they do not have comparative advantage in.
(b) Analyze the adjustment costs faced by workers in the following sectors if there is trade liberalization and why it is easier for some sectors
to adjust than others:



Agricultural sector (e.g. rice production)
Manufacturing sector (e.g. textile manufacturing)
Services sector (e.g. software programming services)
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Reference Materials:
http://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm
http://www.wtomc6.gov.hk/eng/home/welcome.html
http://www.china.org.cn/english/BAT/110505.htm
http://www.bjreview.com.cn/200441/World-200441(C).htm
「800 萬元鞋子被不法分子付之一炬 西班牙「燒鞋事件」困擾溫州鞋商」 (23-9-2004,香港商報)
「中國鞋在西班牙被焚」 (23-9-2004, 信報財經新聞)
「西班牙暴徒 擬再炸華鞋商 燒鞋城事件掀外交風波 京急交涉」(24-9-2004, 香港經濟日報)
「就華商遭受極端暴力襲擊事件 中國促西班牙嚴懲兇手」 (24-9-2004, 大公報)
「世界工廠樹大招風須依法追究護華商」 ( 24-9-2004, 明報)
「中國鞋銷路佳西班牙鞋業陷危機」(24-9-2004, 明報)
「西班牙埃爾切排華燒鞋城」 (24-9-2004, 明報)
「從中國鞋被燒看全球化兩面性」 (25-9-2004, 大公報)
「西班牙再發生對華商示威」(2-10-2004, 信報財經新聞)
「韓國農民致香港市民」( 10-8-2005, 明報)
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Alternative arrangement of the lesson
Steps
Student activities
1. and 2. are the same as the original arrangement.
3.
Remarks
Refer to the target content/skills
in steps (1) and (2) above.
Teacher divides the class into four groups with
Based on the role they play, students
each group playing ONE of the following roles:
 Spanish consumers;
 Spanish workers in the footwear industry
 Spanish shoe factory owners; or
 Chinese shoe producers with goods
exporting to the Spanish/EU market.
exchange their views with each other.
Each student in the group must:
(a) Explain to other group members
why he/she is in favour OR not in
favour of opening up the
Spanish/EU footwear market to
foreign producers; and
Teacher then asks the representative of each
group to present their views to the class.
Target content / Skills
(b) Write down the views of the
group. The group will choose a
spokesperson to present the
group’s views to the rest of the
class.
 Develop students’
ability to systematically
present and support
their own ideas and
opinions, making use
of, if necessary,
pre-requisite knowledge
acquired, to support
their arguments.
 Develop students’
note-taking skills.
 Develop students’
presentation skills.
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4.
Regroup the class with each group now consists In the discussion, each student must
of a “Spanish consumer”, a “Spanish worker in try to
the footwear industry”, a “Spanish shoe factory
 convince the other group
owner” and a “Chinese shoe producer with
members as to whether there
goods exporting to the Spanish/EU market”.
should be trade
liberalization, using
statistical data to support
his/her argument if
necessary; and
 write down the views and
concerns of other group
members.
After discussion, each group is required to draft
a proposal to the teacher (students playing the
role of a mediator).
After the discussion, each group
drafts a proposal to the teacher to:
 state the concerns of all
parties in the group; and
 suggest solutions to avoid
conflicts similar to those
shown in the programme
 Develop students’
ability to systematically
present and support
their own ideas and
opinions, making use
of, if necessary,
pre-requisite knowledge
acquired, to support
their arguments.
 Develop empathy for
parties who hold views
different from their
own.
 Develop students’
note-taking skills.
 Develop the skills of
resolving conflicting
interests vested in
different parties.
from happening in future.
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 Construction of
knowledge (e.g.
difficulties encountered
by different parties in
the process of trade
liberalization,
adjustment costs are
different for different
parties in the trade
liberalization process
etc) not previously
learnt in a simple trade
model.
 Develop in students the
awareness that the
mediation process must
involve the
participation of all
parties affected by trade
liberalization.
Note: The above lesson plan is prepared for teachers' reference. Please adapt to the needs and characteristics of your students and classes. For
enquiries, please contact Mr. Wong Ka Sing at 28926513.
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