The Global Economy:
Teacher Module
Prepared by:
Tanya Barnett
Claude Brun del Re
Harold Moore
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Geography of Canada mapped by Ecozones
Grade 9 Academic and Applied courses
Thinking Globally in the Local Classroom
Canada and World Isues: A geographic Analysis
Grade 12, University Preparation
This Module has been developed with support and input from the GLOBAL CLASSROOM
INITIATIVE; a CIDA (Canadian International Development Agency) resource for educators
wishing to encourage Canadian youth to actively explore international-cooperation issues. The
Module is part of the Geomatics For High School Curriculum Web site; a cooperative project
between NGO's, private industry, government and high school teachers. The goal of the
"Thinking Globally in the Local Classroom" section is to help students develop the skills,
knowledge, and values they need to become responsible citizens and informed participants of an
increasingly interdependent world. This is achieved through units that include background
information, fact sheets, classroom activities, resources and Geographic Information System
(GIS) lessons on global themes. These modules are designed to be a dynamic resource that
Ontario teachers can use in the "Canadian and World Studies" curriculum in particular for the
Grade 12 course "Canada and World Issues : A geographic Analysis". The modules are also
relevant to other Social Studies and Humanities courses in Ontario and in other Canadian
provinces.
CIDA Global Classroom Initiative
World Inter-Action Mondiale
GeoInsight Corp.
Clauren Géo-éducation
ESRI Canada Ltd.
Woodroffe H.S.
OCDSB
Visit our website at / Visitez notre site web aux sites suivants:
www.ocdsb.edu.on.ca/woodsweb/geomatics
OR geo.woodroffehs.com
1
Acknowledgements
The production of these modules would not be possible without the assistance of the following
groups and individuals:
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•
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•
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Scott Gordon, Betty Ann Chung, Katie Sullivan, Gordon Walker, Natalie Poulson and
Anna Pollock of World Inter-Action Mondiale
TransFair Canada, Halifax Initiative, OXFAM Canada, the United Association of Canada
ESRI Canada
World Issues Students at Woodroffe High School
Trevor Penney, Michael Sullivan, Tina Huynh, Le Hoa Tan, Chieu Anh Ta and Anna
Yodko of Woodroffe High School
The OntarioTrillium Foundation
The Canadian International Development Agency
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TABLE OF CONTENT
MODULE: THE GLOBAL ECONOMY…………………………………………………………………..5
Goal………………………………………………………………………………………………………….5
Module Description…………………………………………………………………………………………5
Introduction………………………………………………………………………………………………….6
What is globalisation?.....................................................................................................................6
A Global Alternatives – Fair Trade……………………………………………………………………….8
Why teach about globalisation?.....................................................................................................14
Synopsis Chart: Lesson Plans on the Global Economy………………………………………………15
Descriptors for levels of achievement…………………………………………………………………..17
UNIT 1: INTRODUCTION TO GLOBALISATION…………………………………………………….18
Description………………………………………………………………………………………………...18
Curriculum Expectations…………………………………………………………………………………18
Prior Knowledge and skills……………………………………………………………………………….19
Planning Notes…………………………………………………………………………………………….19
Teaching/Learning Strategies……………………………………………………………………………19
Accommodations………………………………………………………………………………………….20
Assessment and Evaluation of Student Achievement………………………………………………...21
Rubric Evaluation of Student Achievement…………………………………………………………….23
Resources………………………………………………………………………………………………….24
ACTIVITY 1………………………………………………………………………………………………..25
WORKSHEET 1: GLOBAL BINGO……………………………………………………………………..27
ACTIVITY 2………………………………………………………………………………………………..28
SUPPLEMENTARY SHEET 1…………………………………………………………………………..30
ACTIVITY 3………………………………………………………………………………………………..33
ACTIVITY 4………………………………………………………………………………………………..35
WORKSHEET 2: BACKSTAGE OF A MNC…………………………………….……………………..37
UNIT 2: THE GLOBAL ECONOMY…………………………………………………………………….38
Description………………………………………………………………………………………………...38
Curriculum Expectations…………………………………………………………………………………38
Prior Knowledge and skills……………………………………………………………………………….38
Planning Notes…………………………………………………………………………………………….38
Teaching/Learning Strategies……………………………………………………………………………38
Accommodations………………………………………………………………………………………….39
Assessment and Evaluation of Student Achievement………………………………………………...40
Rubric Evaluation of Student Achievement…………………………………………………………….41
Resources………………………………………………………………………………………………….42
ACTIVITY 5……………………………………………………………………………………………..…43
STUDENT INSTRUCTIONS………………………………………………….………………………….48
WORKSHEET 3: HEALTH AND EDUCATION BUDGET SHEET…………………….…………….49
WORKSHEET 4: BANKER SHEET…………………………………………………………………….50
WORKSHEET 5: IMF/WB LOAN SHEET………………………………………………………………51
WORKSHEET 6: WTO TRADING FINES……………………………………………………………...52
WORKSHEET 7: TRADING CHECKLIST FOR G AND LDC COUNTRIES……………………..…53
SUPPLEMENTARY SHEET 2…………………………………………………………………………..54
SUPPLEMENTARY SHEET 3…………………………………………………………………………..55
SUPPLEMENTARY SHEET 4…………………………………………………………………………..58
SUPPLEMENTARY SHEET 5…………………………………………………………………………..67
SUPPLEMENTARY SHEET 6…………………………………………………………………………..71
SUPPLEMENTARY SHEET 7…………………………………………………………………………..73
UNIT 3: THE ALTERNATIVES……………………………………………………………………….…75
Description………………………………………………………………………………………………...75
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Curriculum Expectations…………………………………………………………………………………75
Prior Knowledge and skills……………………………………………………………………………….76
Planning Notes…………………………………………………………………………………………….76
Teaching/Learning Strategies……………………………………………………………………………76
Accommodations………………………………………………………………………………………….76
Assessment and Evaluation of Student Achievement……………………………………….………..78
Resources………………………………………………………………………………………………….80
ACTIVITY 6………………………………………………………………………………………………..81
ACTIVITY 7………………………………………………………………………………………………..83
SUPPLEMENTARY SHEET 8……………………………………………………………………..……85
ACTIVITY 8………………………………………………………………………………………………..86
SUPPLEMENTARY SHEET 9…………………………………………………………………………..88
UNIT 4: THE GLOBAL ECONOMY…………………………………………………………………….90
Description………………………………………………………………………………………………...90
Curriculum Expectations…………………………………………………………………………………90
Prior Knowledge and skills……………………………………………………………………………….91
Planning Notes…………………………………………………………………………………………….91
Teaching/Learning Strategies……………………………………………………………………………91
Accommodations………………………………………………………………………………………….91
Assessment and Evaluation of Student Achievement………………………………………………...93
Rubric Evaluation of Student Achievement Cartography Skills……..……………………………….95
Rubric Evaluation of Student Achievement…………………………………………………………….97
Resources………………………………………………………………………………………………….98
ACTIVITY 9………………………………………………………………………………………………..99
BACKGROUND INFORMATION ON THE GLOBAL ECONOMY…………...…………………….101
ARCVIEW LESSON ON GLOBAL ECONOMY…………….…...……………..………………..…..106
WORKSHEET 8: THE GLOBAL ECONOMY GIS LESSON…..………………………..………….119
Globalisation Fact Sheet………………………………………………………………………………..122
Fair Trade Fact Sheet…………………………………………………………………………………..124
Do something!..............................................................................................................................126
Glossary…………………………………………………………………………………………………..127
Resources………………………………………………………………………………………………..130
Bibliography………………………………………………………………………………………………141
Appendix 1: IMF Fact Sheet……………………………………………………………………………143
Appendix 2: The World Bank Fact Sheet……………………………………………………………..144
Appendix 3: World Trade Organization Fact Sheet…………………………………………………145
Appendix 4: Structural Adjustment Policies Fact Sheet…………………………………………….146
Appendix 5: FTAA Fact Sheet…………………………………………………………………………147
Appendix 6: Multi-National Corporation Fact Sheet…………………………………………………149
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Canada and World Issues:
A Geographic Analysis
Grade 12
University preparation
CGW4U
MODULE: THE GLOBAL ECONOMY
Time: Minimum 5 Hours
Goal
Our main goal in producing this module is to develop a clear understanding of the global
economy and to raise awareness of how globalisation influences the daily lives of students.
Goal:
To provide lesson plans using the Ontario Curriculum for Canadian and World
Studies that will enable high school students to develop a clear understanding of
how the global economy functions.
Objectives:
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To raise awareness of how globalization affects the daily lives of students.
To analyse the perspectives of various stakeholders at the local, national and
international level on the global economy.
Module Description
In this module, students explore the challenges of creating a sustainable future through a
critical analysis of the global economy at the local, national and international level. Students will
evaluate the approaches, policies and principles relating to the global economy placing specific
emphasis on their own personal lives and how their actions play a part in globalisation.
This module provides a firm foundation for understanding the terminology and key issues
pertaining to the global economy. Furthermore, a number of geographic methods are used to
introduce students to the issues surrounding the global economy. These include data analysis,
issue analysis, and mapping techniques. Furthermore, the lesson plans incorporate a variety of
teaching and learning methods to provide a stimulating environment for the learner to gather
knowledge and encourage critical and analytical debate on the issue of the global economy. The
use of simulation, role play, group discussion and a number of other participatory techniques are
used throughout the module.
The module is self-containing meaning that all the resources needed to use the lesson plans
are included. Should you be interested in exploring the issue further, a number of references are
provided for your convenience.
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Introduction
What is globalisation?
Competing ideologies would have us believe that globalisation is on the one hand, the force
that brings us closer together - creating a network of interdependence and mutual aid. While on
the other hand, globalisation is pushing us further apart: by promoting an economic system that
results in further inequality between rich and poor.
In the end, the term globalisation has no easy definition. Globalisation is used to describe a
wide variety of trends and phenomena. In its broadest sense, it describes the growing economic
and cultural transfers that occur between nations – be it access to the world-wide web, the
opening of another McDonald’s or another free trade treaty. In a more narrow sense, globalisation
is used to refer to the increased international traffic of goods and services, as well as the
economic policies of trade liberalization.
Globalisation has largely been about economics and expanding the international trade in
goods and services. The process of expanding trade began five centuries ago when European
explorers began their search for new wealth. The European nations extracted raw materials from
their colonies using labour from native populations and then off-loaded their surplus goods on
these colonial nations.
The story is not much different today. Western countries import raw materials from Third
World countries and export finished products to these countries. One thing is different in today’s
global economy, the players. World trade is dominated by multi-national corporations that have
introduced Western-style consumerism across the globe (See Appendix 6). The UNDP reports
that global corporations such as General Motors, Wal Mart and Ford Motor Co. are more powerful
than most nation-states. Today, over half of the 100 largest economies are not run by countries
but by multi-national corporations.
At the end of World War Two, a new set of rules were laid out for the global economy. The
main motivation for the new rules was to prevent any future financial crises such as the Great
Depression of the 1930s that crippled the world economy. In 1944, world leaders met in Bretton
Woods, New England to lay the framework for a stable, cooperative international monetary
system. Three institutions emerged to coordinate the global economy:
1. The International Monetary Fund (IMF) was set up to maintain currency stability and develop
world trade by establishing a multilateral system of payments between countries based on fixed
exchange rates and complete convertibility from one currency to another. It was also mandated
as a lender of last resort to supply emergency loans to countries which ran into cash flow
problems (See Appendix 1).
2. The World Bank (International Bank for Reconstruction and Development) was founded as a
means of reviving war-damaged European economies, a mandate that was later extended to
developing countries (See Appendix 2).
3. The General Agreement on Tariffs and Trade (GATT)/World Trade Organization (WTO). GATT
was established at Bretton Woods as a set of rules to govern world trade and stop the
protectionist policies that crippled the world economy in the 1930s. It was replaced in 1995 by the
World Trade Organization which expanded the GATT mandate beyond the trade in goods to
trade in services as well. Rules of trade were established to cover areas like telecommunications,
banking, intellectual property rights and investments. Furthermore, while GATT was not a legally
binding agreement, the WTO can impose trade sanctions on nations that refuse to comply with
trade regulations (See Appendix 3) (New Internationalist: 320, 2000).
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With the establishment of these three institutions, a new economic order began to unfold.
With a restored confidence in the economy, trade expanded and the World Bank started issuing
massive loans to the Third World for development. The price of primary commodities such as oil
increased and the profits from these commodities was invested in Northern Banks. More loans
were issued to Third World Countries, without regard to their use. The loan money was often
used for prestige projects such as dams and roads or to buy arms for military dictatorships. The
growth in the economy started to fizzle at this time and the western economy entered a period
economists labelled stagflation where prices soared and growth slowed. As a result, both interest
rates and unemployment increased. This meant that the west had less money to loan to Third
World countries who were now facing a growing debt load as a result of the hike in interest rates.
During this period, the IMF began to offer conditional loans to debt- ridden countries. The IMF
would provide loans on the condition that the borrowing country adopt a structural adjustment
policy (SAP) including the following measures:
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Privatising public enterprises
Reducing government spending on social services
Liberalising trade
Increasing exports
Devaluing their currency
The SAPs were set up to help reduce the debt load these countries faced. It has had the
opposite effect. Due to increased interest rates, Third World Countries have had to spend more
on paying the interest. The increase in exports has resulted in a flooding of the market of most
primary commodities which has driven the price down. Third world countries have had to export
more to maintain current export revenue levels. The reduction in social services has created an
increase in the death of children and the incidence of malnutrition (Pillaged Lives, 1997). In
contrast to the original goals of globalisation – worldwide prosperity and improvements in quality
of life – there has been an increase in inequality and poverty as national governments lose their
ability to control their development strategies and policies. Groups around the world are working
to combat these problems and advocate for a new economic regime. The New Internationalist’s
No-Nonsense Guide to Globalisation summarises some of these efforts in five concrete steps:
1. Increase citizen participation
The institutions which determine global trade and investment policy have an obligation to
incorporate the opinions and insights of civil society into their decision-making.
2. Establish a global financial authority
The world needs a new international regulatory agency to reduce volatility and inefficiency in
global financial markets.
3. Honour the earth
Global environmental standards must be set based on sustainability, equity and justice and
should be imbedded in all international trade and investment agreements.
4. Stop speculation by supporting a tax on international financial transactions
A tax on financial speculation could help stabilize global markets and capture much-needed
funds for global development.
5. Control capital for the public good
An alternative investment code is needed for democratic control of capital and to stimulate
investment that benefits local communities. This would replace the WTO rules that favour
wealthy investors (NI No-Nonsense Guide to Globalisation, 2000).
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A Global Alternative: Fair Trade
Fair trade is an alternative approach to conventional international trade. Rather than
exploiting the wildly fluctuating commodity market, it is a partnership between producers, traders
or buyers and consumers. The result is a more equitable and sustainable exchange of goods,
that recognizes the cost of labour and production to the producer.
Teaching about fair trade practices is one way to raise awareness of the realities of our
trading relationships with other countries. More importantly, it is also a chance to re-evaluate the
impact of our consumer choices on the lives of others. Teaching responsibility is no easy task, but
by learning about the alternatives to conventional trade and the choices they have, students will
feel empowered to work towards positive social change.
Goals of Fair Trade
Alternative trading organizations or fair traders in Canada and the US pay fair prices to small
producers, prices that recognize the true cost of labour and production.
Many fair trade retailers, wholesalers and producers are member of the International
Federation of Alternative Trade (IFAT). IFAT is a global network of fair trade organizations that
works to improved livelihoods and well-being of marginalized people through trade. Members of
IFAT agree to follow the goals of fair trade as outlined below.
Fair Trade Practices
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to pay fair prices to producers which recognize the cost of labour and production
•
to buy directly from producers and pay an advance of up to 50% to allow producers to buy
seeds, tools and materials
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to raise awareness among consumers of the negative impact of traditional trade on small
producers
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to protect human rights by promoting social justice, sound environmental practices and
economic security
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to work with democratically-run organizations like co-operatives and self-help groups
to promote development opportunities for women and indigenous people, and to protect
children from exploitation in the production process
Source: The International Federation of Alternative Trade. www.ifat.org
Globalisation and Free Trade
Free trade zones, or Export Processing Zones (EPZs), are industrial zones set up to attract
foreign investment. The EPZs offer special incentives to attract investment like free infrastructure,
tax breaks, exemption from labour and environmental laws and a supply of cheap labour.
Over 27 million people work in some 850 EPZs worldwide.
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EPZs Worldwide
Country
US and Mexico
Asia
Caribbean
Latin America
Middle East
Philippines
Africa
Total Number of EPZs
320
225
51
41
39
35
47
Source: Maquila Solidarity Network
EPZs attract industry that is labour intensive such
as garments and footwear and the assembly of
electronic components. These industries require
only basic technology and a low-skilled labour
force.
The Labour Behind the Label Coalition, a
group of unions, churches and NGOs
working to address abuses in the garment
industry have initiated the Fair Wear
campaign.
The factories situated in these regions
Fair Wear is an action that calls for a new
are often labeled sweatshops. The term
corporate ethic that pushes companies to
sweatshop was first used in the 19th century
take responsibility for the products they
to describe a system of employment where
make and sell; to make them accountable
factory owners profited by forcing their
to their workers, consumers and the
employees to work long days under unsafe
environment. It calls on governments to
conditions, for subsistence wages. Large
take leadership and enforce legislation that
corporations have reverted to these
is in place to protect workers.
sweatshop standards by exposing workers to
extreme exploitation, including the absence
Source: Ten Days for Global Justice, 1999.
of a living wage or benefits, poor working
conditions and arbitrary discipline (The OXFAM Campaigner).
Very few of the fashion giants actually produce their own products anymore. It is much
cheaper for companies to contract out the production. The number of companies involved in
production is so enormous that they must bid against each other for contracts. Contracts are
granted to the companies that offer the lowest costs. These companies are typically located in
free trade zones known for their restrictive labour conditions and low taxes.
Worldwide, there are 23.6 million workers employed in the garment industry. Of that total,
75% are women. Women are stereotypically good sewers, known for their “quick fingers and
good discipline.” Also, women are more likely to tolerate indignity and exploitation for the sake of
supporting their family (Ransom, 2000).
Profile of Levi Strauss and Co.
• Levis jeans were first produced in 1872 as a response to the demand from
California gold-miners for hard-wearing work clothes.
• The World’s largest garment industry with annual sales of $7 billion US.
Human Rights
Withdrew production contracts from Burma and China because of human-rights
violations.
Offered education to Bangladeshi children when it discovered child-labour at one of
its contractors.
Will not allow independent monitoring of its garment factories.
Environment
Shows little interest in organic cotton and alternative fibres.
Source: New Internationalist: 302, 1998
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Traded Goods
Jeans
‘Denim’ is probably a corruption of the French
serge de Nîmes, a twill-weave fabric made in Nîmes
during the 17th century. The word ‘jean’ was used to
describe a fustian European fabric made from a
cotton, linen and wool blend. The word ‘jean’ was
named after sailors in Genoa, Italy. Jean made
entirely form cotton was used for its durability during
the slave labour trade of the 18th century. Indigo from
plants in the Americas and India became the colour
of work wear. Jeans moved into mainstream fashion
in the 1930s when Hollywood movies portrayed the
‘authentic’ cowboys in denim ‘waist overalls’.
Production of jeans moved south after the
liberalization of trade in the late 1970s using cheap –
usually female labour – in sweatshop conditions (New
Internationalist: 302, 1998).
Together, the apparel and textile
industries are the largest industrial
employer in the world.
The apparel sector represents
about half that global industry. More
than 23.6 million workers are
employed in the garment industry
worldwide. Close to 75% are
women.
Source: Maquila Solidarity Network
www.maquilasolidarity.org
Coffee
Coffee is believed to have originated in Kafa, Ethiopia. Gall people in Ethiopia noticed that
they got an energy boost when they ate the coffee cherry ground up with animal fat. Centuries
later, the coffee bean arrived in Europe with 17th Century Italian traders. With the expansion of
European trading empires coffee was taken back to the tropical regions of Africa and on to the
Caribbean, Latin America and South Asia to be grown on estates. Demand for coffee thrived in
both European and American markets. Profits from the coffee trade began to concentrate in the
shipping, processing and retailing sector. The most labour-intensive, risky and unprofitable part of
the operation - growing and processing the bean itself - was left to small-scale producers. Prices
of coffee have been driven down in recent decades due to the flooding of the market as coffeeproducing countries struggle to produce an increasing amount in order to acquire foreign currency
to service their escalating international debt (New Internationalist: 271, 1999).
Cocoa
The cocoa bean was first used in Mexico to make a spicy drink during the Mayan Empire. It
was a symbol of sanctity. With the invention of the cocoa press in the late 19th century by the
Dutchman, Van Houten, the chocolate industry came into being and companies like Cadbury and
Rowntree of England and Hersey and Mars in the US were developed. World production of cocoa
shifted to West Africa, where Ghana became the largest producer from 1910 to 1979. Soon, other
countries were encouraged to set up cocoa plantations and as a result, the supply of cocoa
escalated, driving the price down substantially (Ransom, 2000).
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Fruit – The Banana
In 1870 Captain Lorenzo Dow Baker landed the schooner Telegraph in Jamaica and saw that
bananas were popular on local markets. He purchased 160 bunches for one shilling per stalk on
Port Antonio docks; 11 days later he sold bunches for two dollars each in Jersey City, making a
huge profit. The legendary bounty of the banana trade was established. Bananas were shipped to
Boston and New Orleans from Cuba and the Dominican Republic as well as Jamaica. By 1898
some 16 million bunches were being imported into the US (New Internationalist: 317, 1999).
In Canada
Garments
Just over half of the clothing sold by the Canadian garment industry is made in Canada.
According to UNITE, the union of Needletrades, Industrial and Textile Employees, organization,
imports of clothing are on the rise in Canada and more is being produced by small companies
with non-unionized workers. There are 40 000 home-workers in Canada who typically work for
less than minimum wage with no enforcement of labour standards.
The move towards fair trade, demands that companies let their costumers know where and
how their clothing is made. As well, fair trade groups have been pressuring companies to allow
third-party monitoring of their facilities, to ensure that workers are not being exploited.
Fruit Imports in Canada
Of imports from the South,
bananas constituted 25 percent,
grapes 10 percent and citrus
fruits 13 percent. Other fruits
such as melons and pineapples
constituted 18 percent of imports
while orange and other fruit
juices accounted for 20 percent.
Dried and canned fruits and fruit
preparations such as jams made
up the remaining 14 percent.
Source: Statistics Canada,
Imports, Merchandise Trade,
1997
Between 1987 and 1997 the
quantity of fruits such as
bananas, grapes, pineapples,
citrus and melons imported into
Canada
from
the
South
increased by approximately 45
percent, from 452 to 656 million
kilograms.
Source: Statistics Canada,
Imports by Commodity 1998
Coffee
Taking into account the food market alone, the impact of
Canadians on nations trading in primary commodities is
enormous. According the Coffee Association of Canada,
67% of Canadians drink coffee everyday, and the average
coffee drinker has three cups a day.
Cocoa
Statistics from the International Cocoa Organization
reveal that total chocolate sales in Canada in 1996 reached
$1 109 billion. This translates into 163 billion kg of chocolate,
an average of 5.4 kg of chocolate per person.
Fruit
One of the fastest growing imported food "commodities"
in Canada is fruit. Imports of fruit have doubled since 1985.
Statistics Canada tells us in 1995, Canada purchased 60%
11
of its fruit from the U.S., and the remaining 40% from countries in the South - primarily in Latin
America. The average Canadian eats more than 13 kilograms of bananas every year. In 1995,
Canadians imported $247 million worth of bananas and banana products.
In 1996 almost a billion dollars worth of fruit and fruit products was imported into Canada from the
South. This represented 41 percent of fruit imports from all sources.
The Impact of Cash Cropping
We are beginning to understand the serious environmental
and human impacts resulting from commercial fruit growing
in these countries. We now know that large-scale
production of fruit results in:
• loss of biodiversity;
• excessive use of highly toxic pesticides that are
very harmful to the local environment and to farm
workers;
• soil erosion and siltation of waterways;
• poor working conditions including low wages and
denial of the right to organize;
• reduced self-reliance of small growers and their
displacement by large foreign-owned enterprises.
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THE FAIR TRADE MARKET IN CANADA
In Canada, all fair trade labelling is organized through TransFair Canada
(TFC). TFC is a membership based, not-for Profit Company that owns
and licenses the TransFair label. To carry the TransFair label, a product
must have been produced under the principles of fair trade.
TFC is a member of the Fair Trade Labelling Organization (FLO). As a
member of FLO, TFC has access to the FLO International Coffee
Register which lists certified fair trade producers - family farms and cooperatives that are democratically organized.
Transfair also imports fair trade cocoa and chocolate bars from the
Ottawa-based La Siembra co-operative.
FAIR TRADE ALTERNATIVE
TEN THOUSAND VILLAGES
Owned and operated by the Ottawa Alternative Trade Corporation, Ten
Thousand Villages imports, sells and promotes a variety of fair trade
goods.
BRIDGEHEAD CANADA
Bridgehead has been one of the pioneers in fair trade coffee, tea and
cocoa in Ottawa. They continue to serve the Ottawa area, and run several
coffeehouses.
FAIR FRUIT
In 1997, a working group was formed to examine the impacts of our
consumption of imported fruit. The results pointed to a range of serious
concerns. In response, the Fair Fruit initiative was launched, to raise
awareness and broaden the available choices of sustainably-produced
fruit.
LA SIEMBRA COOPERATIVE
La Siembra Co-op is a leading North American fair trade organization
offering consumers high-quality, certified fair trade organic products that
improve the livelihoods of family farmers and the well being of
communities at home and abroad. Incorporated in 1999, La Siembra is
the first organization to import, manufacture and distribute fair trade
certified organic cocoa products in North America.
MAQUILA SOLIDARITY NETWORK
The Maquila Solidarity Network (MSN) is a Canadian network promoting
solidarity with groups in Mexico, Central America, and Asia organizing in
maquiladora factories and export processing zones to improve conditions
and win a living wage. In a global economy it is essential that groups in
the North and South work together for employment with dignity, fair
wages and working conditions, and healthy workplaces and communities.
13
Why teach about globalisation?
To the average person the term globalisation conjures up a lot of different and sometimes
competing images: from Coca-Cola and McDonald’s to international protests, the spread of the
Internet and campaigns on fair trade. Heavy with connotations, globalisation is an issue that
everyone hears about but few are brave enough to discuss. Why?
In your classroom you are bound to find the same confusion and hesitance to define the term
“globalisation”, and yet all of the students will no doubt agree that globalisation has had an impact
on their life, even if it is the impact of McDonalds or Much Music Videos. There is no doubt that
the countries and regions of the planet are becoming increasingly interconnected. Through the
increasing influence of media, the Internet, the movement of capital and investment, we have
become part of a global community. But, what does it mean to be a part of globalisation?
Understanding our relationship to the emerging global community, and the process of growing
interdependence of countries through trade and trade liberalization, is what this module is about.
Teaching about globalisation will not only help your students to overcome their initial shyness
to engage the topic, but will also help them understand how globalisation affects them and
shapes the world we all live in. It is not difficult to understand that the growing economic
interdependence of countries and the infiltration of mass media on a global scale are having an
unprecedented impact on societies around the world. This module is designed to help students
understand their place and responsibility in our globalize system.
Why teach about fair trade?
Choosing your brand of morning coffee, shopping for your breakfast, or visiting your favourite
clothing store may not seem like an important task. But, what you buy has a profound impact on
the millions of people around the world who depend on the food or clothing trade for their
livelihood.
As we move towards a globally integrated market, it is imperative that we examine the way in
which increased free trade is affecting all aspects of society - from workers and suppliers, to the
end consumers. Without a doubt, globalisation has brought about an increase in the amount of
international trade. Experience in the south, however, tells us that although world trade has been
expanding fast for rich nations, the share to developing countries is declining, although they
represent most of the world’s populations. Moreover, the cash value of their exports, primarily
basic commodities - metal ores, coffee, or foodstuffs, has hardly increased at all.
Currently the rules of trade are set by the western global trio: the IMF, World Bank and WTO
(See Appendix 1, 2 and 3). Despite their rhetoric of sharing increased wealth, the fact remains
that the current system of trade concentrates wealth into a few hands - usually northern based
trans-nationals, with little to no consideration for the workers that supply the foodstuffs or raw
materials. As prices for primary commodities and popular foodstuffs (coffee, cocoa or bananas)
continue to decrease, and clothing manufacturers continue to make their clothes where the costs
are cheapest, the fate of the communities dependent on these exports becomes all the more
precarious.
And yet, we do have a choice. By teaching your class about fair trade, you introduce the idea
of ethical consumption, and positive consumerism. You are teaching your students that trade can
be used to benefit developing countries and that by supporting fair trade they are promoting
sustainable agricultural practices and bettering the livelihoods of individuals.
14
Synopsis Chart: Lesson Plans on the Global Economy
Lesson Plans
Unit 1
Global BINGO
Learning Expectations
Assessment
Tasks
UC3.01
-Simulation game
-Open-ended questions
-Discussions
-Human organizer
(Web)
Find out how global
your class is.
Mystery Jeans Inc.!
GC1.04, GC3.01,
GC3.02, UC3.02
-Simulation game (Roleplay)
-Open-ended questions
-Presentations in their
group
-Decision making
-Discussions and
debriefing
-Provoke a debate on
Mystery Jeans Inc!
Learn about the impact
of TFCs on a
community.
Video
SSV.02, SS2.04,
GC2.01, GC3.01,
UC1.02
-Open-ended questions
-In-class questions and
answers
-Discussions
Discuss the role of
Economic Institutions in
the global economy.
Backstage of a MNC
(Homework 1)
HE2.06, GCV.01,
GCV.02, GC3.02
-Group work
-Discussions
Poster creation (Give
the Rubric – Poster and
presentation to the
student)
Develop a profile for
some of the major world
corporations (Should be
evaluated in Unit 3).
SSV.02, SS1.01,
SS1.05, HEV.01,
HE2.06, GCV.01,
GC2.01
-Simulation game (Role
play)
-Decision making
-Discussions and
debriefing
-Research
-Evaluate using Rubric
-Analysing the impact of
global trade on a
selected country.
Understand the process
of international trade
and how international
debt transpires.
HE2.06, GCV.01,
GCV.02, GC3.02
-Group work
-Discussions
Poster creation (Give
the Rubric – Poster and
presentation to the
student)
Present your findings
about global
corporations.
UC3.01
-Discussions and
debriefing
-Research
Examine how your
students play a role in
the global economy.
Unit 2
The Global Economy
Game
Unit 3
Backstage of a MNC
(Homework 1)
The Clothes on your
Back
15
Cotton to Consumer
HE2.06, GC3.01,
GC3.04, UCV.03,
UC1.02, UC2.03
-Group work
-Discussions
-Human organizer
-Open-ended questions
-In-class questions and
answers
Learn about the process
of goods production
from a raw material to a
consumer good.
Discussion:
International Debt
SSV.02, GCV.01,
GIV.03
-Discussions
-In-class questions and
answers
-Open-ended questions
Research the
Background Information
on the global economy
and its resources.
GIS Lesson: Global
Economy
GIV.02, SS1.04,
SS1.05, SS3.02,
GC3.04, GI1.02, GI2.02,
GI2.07
-ArcView GIS Lesson
on computer
-Questions and answers
with a partner
-Cartographic Skills
Rubric
GIS analysis of the
global economy (Gross
domestic product,
income disparity,
poverty, external debt,
and foreign investment).
GIS Homework
(Research paper the
global economy)
GIV.01, GI2.06, GIV.04,
GI2.08, GI2.10
-Research paper on an
additional aspect of the
economy with
background information
and a defined GIS
project.
-Students will acquire
GIS data and identify
certain aspects of the
global economy (e.g.
Corporations, exports /
imports, spending
profiles, etc).
-Evaluate research
paper using the rubric.
Further GIS analysis on
the global economy.
Students will conduct an
independent inquiry that
applies the geographic
knowledge acquire in
this module, skills, and
creativity.
Unit 4
16
DESCRIPTORS FOR LEVELS OF ACHIEVEMENT
LEVEL 1
LEVEL 2
•
Understanding of a few concepts
•
Understanding of some concepts
•
Shows limited understanding
•
Shows some understanding
•
Rarely applies skills and knowledge
•
•
Sometimes applies skills and
knowledge
Rarely accurate
•
•
Sometimes accurate
Unclear and/or imprecise
•
•
Some clarity and precision
Major errors/omissions
•
•
Several minor errors/omissions
With assistance
•
•
With moderate assistance
Rarely uses appropriate terminology
•
Sometimes uses appropriate
terminology
LEVEL 3
•
Understanding of most concepts
•
Shows considerable understanding
•
Usually applies skills and
knowledge
•
Usually accurate
•
Generally clear and precise
•
Few minor errors/omissions
•
With minimal assistance
•
Usually uses appropriate
terminology
LEVEL 4
•
Understanding of all or almost all
concepts
•
Shows through understanding
•
Consistently applies skills and
knowledge
•
Almost always accurate
•
Clear and precise
•
Rarely any errors/omissions
•
Independently
•
Consistently uses appropriate
terminology
17
UNIT 1: INTRODUCTION TO GLOBALISATION
Class Time: 75 Minutes
Description
This lesson will allow the learner to understand their role in globalisation. The lesson begins
with an exercise on understanding how everyone is affected by globalisation (See Activity 1:
Global Bingo). We move from this introduction into a role play on the global economy where
students adopt the role of a community member that is affected by the arrival of a multi-national
corporation (See Activity 2: Mystery Jeans Inc.!).This role play provides students with a first
glance at the dominant players in the global economy and gives an excellent opening to the
showing of a film and discussion on globalisation (See Activity 3: Video). The video selected
summarises the global economy very succinctly and introduces the students to some of the world
decision makers (IMF, WB, WTO). To end the unit, students are given a group assignment where
they will be asked to evaluate the influence of various global corporations in the global economy.
Curriculum Expectations
Global BINGO
Specific Expectations
UC3.01 – identify awareness levels and viewpoints relating to a geographic issue by conducting a
survey in the school or local community.
Mystery Jeans Inc.!
Specific Expectations
GC1.04 – demonstrate an understanding of how economies and environments in some places
may be affected by decisions made in other places.
GC3.01 - demonstrate an understanding of how quality of life and employment prospects are
related to the global economy.
GC3.02 – evaluate the performance of a selected transnational corporations with respect to the
promotion of environmental sustainability and human rights.
UC3.02 – evaluate and communicate the perspectives and arguments of various stakeholders
involved in a geographic issue.
Video
Overall Expectations
SSV.02 – analyse the causes and effects of economic disparities around the world.
Specific Expectations
SS2.04 – evaluate the significance of the participation of people in non-violent movements to
protect resources and environments.
GC2.01 – analyse the economic and environmental consequences for selected countries of
colonialism in the past and economic colonialism in the present.
GC3.01 – demonstrate an understanding of how quality of life and employment prospects are
related to the global economy.
UC1.02 – explain how local participation in the development process can build sustainable
communities.
18
Backstage of a Multi-National Corporation (Homework)
Overall Expectations
GCV.01 – demonstrate an understanding of the interdependence of countries in the global
economy.
GCV.02 – analyse instances of international cooperation and conflict and identify factors that
contribute to each.
Specific Expectations
HE2.06 – explain ways in which trade policies or agreements may affect the environment.
GC3.02 – evaluate the performance of a selected transnational corporation with respect to the
promotion of environmental sustainability and human rights.
Prior Knowledge and Skills
•
•
•
Awareness of concepts of international trade (e.g. export, import, global corporations).
Some knowledge of global economic institutions and regulations (e.g. IMF, World Bank,
WTO, GATT, NAFTA).
Web searching, critical thinking, group work, GIS basic knowledge.
Planning Notes
•
•
•
•
•
•
Photocopy the global bingo card (1 per student) (See Worksheet 1).
Photocopy the Globalisation Fact sheet (See Globalisation Fact sheet).
Photocopy Mystery Jeans Inc.! Role Cards and cut them to size (See Supplementary Sheet 2)
Photocopy the homework sheet on Multi-National Corporations (See Worksheet 2).
Find a film on globalisation that covers international economic institutions. Recommended
film is: Global Village or Global Pillage from World Inter-Action Mondiale (See Supplementary
Sheet 2).
Review the glossary of terms and be prepared to define any for the class.
Teaching/Learning Strategies
Most of the learning strategies are described in each activity, but here are some of the overall
strategies for the unit.
• Introduce students to the concept of the global economy.
• Examine the historical path of globalisation by identifying the policies and international
commitments and the effects of the implementation of local, national, and global issues.
• Identify individuals who have made a significant contribution to globalisation.
• Introduce the students to new vocabulary and the new concepts listed in each activity. Refer
them to the glossary.
• Refer the students to the accompanying material, the supplementary sheets, and where to go
to find information.
• Assign students the suggested homework and encourage students to do an in-depth analysis
of the information provided and to research the websites given for this unit.
• Monitor the group work and simulation games so the benefits are maximized for your
students.
19
Accommodations
Frequent monitoring and assistance should be provided. Accommodations that are normally
provided in the regular classroom for students with special needs should be provided. Here are
some strategies for helping them.
• Information should be presented in as many modalities as possible through oral
presentations, board notes, diagrams, class discussions and activity-based learning.
• Instructions should be clear, concise, to the point, verbally rehearsed by the student, properly
sequenced, reviewed after a time lapse, written down on the board or in a notebook.
• Assignments should be outlined in writing, written in the students’ homework/assignment
book, written (and left) on the blackboard, broken down step by step with the teacher,
rehearsed/modelled, and scheduled step by step.
• Questioning should be clear and concise, allowing for appropriate response time. Students
need to organise their thoughts, match them with appropriate vocabulary, put them in correct
syntax, sequence the ideas and finally express them with good speech. These skills are often
taken for granted when teaching new concepts.
• Encourage students to question for clarification and additional information. Learn to speak
clearly and slowly. Avoid figurative language unless it has been specifically pre-taught.
Encourage and evaluate oral responses and class participation. Allow extra time (e.g.
homework) for students to complete assignments that other students may finish in class time.
Create extra practice opportunities with new vocabulary or concepts. Provide overviews or
lesson highlights at the beginning of class. Discuss and simplify sophisticated vocabulary or
language. Finally, give several short assignments rather than one long one.
20
Assessment and Evaluation of Student Achievement
Lesson Plans
Unit 1
Global BINGO
Categories
Knowledge /
Understanding
Performance
Assessment
-Organizer (webs)
-In-class group discussions
to determine how global
the class is and how
everyone is affected by
globalisation.
-Open-ended questions
-Allows for assessing basic
creative thinking skills.
-Allows for more in-depth
questioning; encourages
students to explain their
reasoning.
-Discussions
-In-class discussions.
-Allows for expression of
thoughts and
communicating ideas
verbally.
-Simulation game
-Method to get ‘authentic’
and simulated real world
performance.
-Presentation in their group
-Allows for expression of
thoughts and
communicating ideas.
-Encourages students to
explain their reasoning.
-Open-ended questions
-Decisions making
-Allows for assessing basic
creative thinking skills.
-Allows for more in-depth
questioning about the
dominant players in the
global economy.
-Discussions and
debriefing
-Debating
-Allows for expression of
thoughts and
communicating ideas
verbally.
-Simulation game
(Role play)
-Method to get ‘authentic’
and simulated real world
performance.
Formative
Thinking / Inquiry
Formative
Communication
Formative
Application / Making
Connections
Personal
Communications
Formative
Mystery Jeans Inc.!
Knowledge /
Understanding
Formative
Thinking / Inquiry
Formative
Communication
Formative
Application / Making
Connections
Formative
21
Video
Knowledge /
Understanding
-Open-ended questions
-Allows for assessing basic
creative thinking skills.
-Identify the role of global
financial institutions in the
global economy.
-Allows for evaluation of
complex critical/creative
and inquiry skills on the
world decision makers.
-Discussions
-Allows for expression of
thoughts and
communicating ideas
verbally.
-Summarize the role of
international economic
institutions in the global
economy.
-Allows for knowledge on
international economic
institutions in the global
economy and how people
around the world are
challenging corporate
globalisation.
-Evaluate the performance
of selected global
corporations in terms of
human rights and
environmental standards.
-Distribute the rubric.
(Poster and presentation
Rubric) for homework 1,
Unit 3, Activity 6 )
-Allows for evaluation of
depth of understanding of
the performance of
selected global
corporations in terms of
human rights and
environmental standards.
-Analyse instances of
international cooperation
and conflict.
-Allows for evaluation of
complex critical/creative
and inquiry skills on the
world decision makers.
-Discussions
-Presentation of their
poster later in Unit 3
(See Poster and
presentation Rubric)
-Summary of their findings
to be presented in Unit 3.
-Discuss how MNCs are
impacted by trade
policies.
-Allows for communication
in all forms – written, oral,
and visual.
-Allows for expression of
thoughts and
communicating ideas.
-Evaluate the performance
of a selected transnational
corporation with respect
to the promotion of
environmental
sustainability and human
rights.
-Allows for knowledge on
the influence of various
global corporations in the
global economy to be
presented.
-Allows for knowledge on
sustainable development
and human rights to be
presented in a sequential
order and to be applied to
new situation / problem.
Formative
Thinking / Inquiry
Formative
Communication
Formative
Application / Making
Connections
Formative
Backstage of a MNC
Knowledge /
Understanding
Formative
and Summative
Thinking / Inquiry
Formative
and Summative
Communication
Formative
and Summative
Application / Making
Connections
Formative
and Summative
22
Rubric Evaluation of Student Achievement
Poster and Presentation Rubric (For Unit 1, Activity 4 and Unit 3, Activity
6: Homework – Backstage of a MNC)
Category
Knowledge /
Understanding
Content of
presentation
Thinking /
Inquiry
Research Skills
Communication
Communication
of Information
and Ideas (how
ideas are
presented either orally or in
the poster)
Application /
Making
Connections
Use of scientific
Terminology
Creativity
Expectations
Level 1
Level 2
GCV.01
• Shows a lack of
understanding
with significant
misconceptions
about the
content,
concepts, and/or
generalizations
in the task.
• Has some
misconceptions
and lacks a
complete
understanding
about the
content,
concepts, and/or
generalizations
in the task.
GCV.02
• Only selects
• Selects with
• Selects and
• Selects and
appropriate skills assistance and
applies the
applies appropriate
applies skills and appropriate
strategies and/or
and strategies
required by the
strategies
strategies, and/or skills specific to the
task with much
required by the
skills specific to
task without
assistance and
task but makes a the task without
conscious effort or
makes critical
number of nonsignificant errors. error, and applies
errors in applying critical errors in
some in innovative
them.
doing so.
ways.
HE2.06,
GC3.02,
GCV.02
• Communicates
• Communicates
information with
information with
limited clarity and moderate clarity
precision.
and precision.
• Communicates
information with
considerable
clarity and
precision.
• Communicates
information with a
high degree of
clarity and
precision.
GC3.02
• Limited use of
proper
terminology.
• Considerable
use of proper
terminology well
thought out,
above the
ordinary
approach.
• High degree of use
of proper
terminology.
• Moderate use of
proper
terminology,
some creativity.
Level 3
Level 4
• Shows a largely • Thoroughly
complete and
understands all
accurate
content, concepts,
understanding of
and/or
the content,
generalizations in
concepts/and/or
the tasks and
generalizations
demonstrates
in the task.
insightful
extensions to some
aspects of the
information.
• Creative design • Shows
resourcefulness,
and/or materials,
creativity in design.
good use of
available
resources.
Adapted from Coping with the new Curriculum, Practical Strategies for Implementing the new Curriculum,
Educational Services OSSTF/FEESO, 2000.
• Little imagination • Standard
shown.
approach using
common
resources.
23
Resources
1. Morin, A. Huntly, J. and M. Sfeir. 1984. "Economic Rights and Human Development". Wm.
C. Brown Company.
2. The Canadian International Development Agency “Facts at a Glance” and “Country
Background” for Mexico (www.acdi-cida.gc.ca).
3. The Department of Foreign Affairs and International Trade Viva Mexico webpage
(http://www.dfait-maeci.gc.ca/mexico/glance-en.asp).
24
ACTIVITY 1
LEVELS:
Grade 12, University Preparation
COURSES AND EXPECTATIONS:
Canada and World Issues
UC3.01
TASK:
Through an ice-breaker activity,
students learn about their role in
globalisation.
EXPECTATIONS:
The student will:
• Appreciate their role in the
global economy.
TIMEFRAME:
15 Minutes
ACHIEVEMENT CATEGORIES:
Knowledge / Understanding
Thinking / Inquiry
Communication
Application / Making Connections
MATERIALS:
BINGO Cards
VOCABULARY:
Boycott
IMF
Pad thai
Procedure:
•
•
•
•
•
•
•
Explain to your students that they will be playing the game global bingo. Each student will
receive a bingo card (See Student Activity Sheet 1).
They must find out which of their classmates meet the criteria listed on the BINGO card.
To win, a student must get two rows of squares.
They cannot sign their own paper and each student can only sign another person’s BINGO
card once.
You can give some reward to the winning students if the people who have signed his/her
paper were truthful (e.g. a sample of fair trade hot chocolate).
At the end of the game, make sure that everyone understands all the points on the BINGO
card. Some may be confused about the term IMF, pad thai or boycotting a product.
Use the discussion questions on the next page to initiate a debate on globalisation with your
students.
25
Discussion on Globalisation
Knowledge / Understanding
When you think of the word globalisation, what comes to mind?
(Write your students’ answers on the blackboard)
Thinking / Inquiry
How are the answers your students came up with related to one another? Draw
a web of interconnectivity on the board.
Application / Making Connections
What role do your students play in this web of globalisation?
26
STUDENT WORKSHEET 1
Name: ________________
GLOBAL BINGO
Instructions
• To win, you need two rows
• You cannot sign your own paper
• Each person can only sign once
Find someone who...
HAS TRAVELLED
TO ANOTHER
COUNTRY
HAS EATEN PAD
THAI
CAN SAY A
SENTENCE IN
THREE LANGUAGES
ENJOYS THE MUSIC
OF A NON-ENGLISH
SPEAKING GROUP
OWNS A CAR
MADE IN
ANOTHER
COUNTRY
VISITED A FOREIGN
WEBSITE RECENTLY
IS WEARING “MADE
IN CANADA” FROM
HEAD TO TOE
WAS BORN IN A
COUNTRY OTHER
THAN CANADA
KNOWS WHAT
THE LETTERS IMF
STAND FOR
IS WEARING
SOMETHING THAT
WAS MADE IN
ANOTHER COUNTRY
READ A STORY
ABOUT ANOTHER
COUNTRY IN A
NEWSPAPER
HAS GIVEN TO A
CHARITY THAT
HELPS PEOPLE IN
ANOTHER COUNTRY
LIVES IN A HOME
WHERE MORE
THAN ONE
LANGUAGE IS
SPOKEN
HAS A PAIR OF NIKE
SHOES
HAS BOYCOTTED A
PRODUCT
WOULD WORK FOR
$4 A DAY
27
ACTIVITY 2
LEVELS:
Grade 12, University Preparation
COURSES AND EXPECTATIONS:
Canada and World Issues
GC1.04, GC3.01, GC3.02, UC3.02
TASK:
Through a role play, your students
will learn about the impact of multinational corporations on a
community.
EXPECTATIONS:
The student will:
• Analyse the impact of the global
economy on people.
• Discuss the role of local
participation in globalisation.
TIMEFRAME:
40 Minutes
ACHIEVEMENT CATEGORIES:
Knowledge / Understanding
Thinking / Inquiry
Communication
Application / Making Connections
MATERIALS:
Role Cards
VOCABULARY:
Multi-National Corporations
28
Procedure
People take on roles assigned to them and try to think, feel, and act in their roles. Participants are
divided into groups of five and each group member is given a role description (See
Supplementary Sheet 1). Within their groups each person makes a one-minute presentation on
their perspective on the development of a Mystery Jeans Inc. in their community, and then they
debate the issue and make a decision. The groups return to the large group to reflect upon the
role play and discuss the process and the decisions. (Both "Mystery Jeans Inc." and "Maquila"
are fictitious.) For a variation on the game, review the textbox at the end of the instructions.
1. Divide your class into groups of five (If, you do not have 5 members per group, you can
participate in one group discussion or increase the number of first and second citizens in some
groups), each group is given copies of each of the five role descriptions and told the following:
"You are citizens of a medium-sized and relatively non-industrialized Third World country called
Maquila. Your community has been asked to make a decision as to whether or not to permit the
large multinational company - Mystery Jeans Inc. - to build a manufacturing plant here. In order
to help your country make a decision, introduce yourself to your group in a one-minute
presentation using the information provided in your role descriptions. Your presentations should
give your opinion on this matter and reasons or facts to support that opinion."
Give the role players five minutes to read their roles and put together their one-minute group
introduction.
2. After the presentations each "community" should debate the issue for about 15 minutes.
3. After the debate, the community (each small group) should make a decision on whether or not
they will permit the Mystery Jeans Inc. to locate in Maquila. The role-play should run
approximately 25 to 30 minutes in total.
4. When all the "communities" have reached a decision, bring the groups back together for the
debriefing discussion. Give the participants a few moments to "get out of their roles" with a stretch
and a pause; then begin the discussion. Have the groups share their decisions.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
How did the participants feel in their roles?
How did they feel about the decision?
Who had power in the community?
What was the power?
What kinds of things maintained the power?
Can you think of any real life situations that resemble the Mystery Jeans Inc. and Maquila?
Who are we in that scenario and what role do we play?
What can we do about multinationals?
What can we do about development?
Allow 10 minutes for discussion.
Variation on Mystery Jeans Inc.
As an alternative to having the communities get together and make a decision, have all the specific
roles join together to discuss their standpoint and then have a class debate with all community
members. For example, all the first citizens can get together and discuss their standpoint on
having Mystery Jeans Inc. set up a factory in their community.
29
SUPPLEMENTARY SHEET 1
Role Descriptions for Mystery Jeans Inc.
Here are five role descriptions. Photocopy and cut out the descriptions for your
participants. Make sure that each role player does not know the description of the other
roles beforehand. Ask each player to study his/her role for five minutes and then do a
one-minute presentation representing her/his role. Each person should start his/her
presentation by introducing themselves (for example, " I am C, a worker or I am Ms. K, a
concerned citizen").
REPRESENTATIVE FROM MYSTERY
JEANS INC.
You are a representative from the North
American head office of Mystery Jeans Inc.
Your company is very interested in building a
plant in Maquila because it knows its profits
are substantially higher in the developing
world than in industrialised countries. (For
example, Mexican garment workers earn one
fifth to one tenth the hourly rate paid in North
American garment factories, resulting in
substantial savings.)
You have the advantage of being able to
corner local markets and to export to First
World countries taking advantage of lower
wages, tax rebates, relaxed environmental
laws, government restrictions on unions and
political stability.
You are concerned that profits not appear to
be the only motivation for your interest in this
country, even though you believe there is
nothing wrong with making a profit. You feel
that Maquila should welcome your company
for the following reasons:
•
•
•
Your plant will provide 2,000 new jobs in
a country where unemployment is very
high.
Your plant will bring new and advanced
technology into the country.
Because you are a multinational
corporation, you will help the country to
obtain export markets to which it does not
presently have access. This will provide
foreign exchange to the country for
payment of foreign imports and debts.
A LOCAL GARMENT MAKER
You are a local garment maker in Maquila.
You run a small garment manufacturing
company that employs many talented tailors
and seamstresses to produce clothing for the
local market.
You are opposed to Mystery Jean Inc.
building a plant in your community for the
following reasons:
You would like to expand your garment
business in the future. To do that, you need
loans, and these are difficult to obtain
because capital is scarce. If Mystery Jeans
builds a plant, banks will prefer to give loans
to them because they are bigger and more
secure. That means no loans for your
company and no expansion. You do not have
access to foreign bank loans and "aid funds"
as larger companies do.
You are afraid that Mystery Jeans Inc. will
drive you, and other small companies like
yours, out of business. (Global corporations
are able to use local finance capital and their
technological advantage to absorb local
industry.) A very large company can drive a
smaller one out of business through superior
advertising, control or take over of export
markets, or by lowering its prices until the
small business can no longer afford to
compete.
30
WORKER
FIRST CITIZEN
You are a Maquila worker.
You are a fairly wealthy landowner in Maquila.
•
•
•
•
•
•
•
Unemployment in Maquila is very high
and, although you are presently
employed, unemployment is a constant
fear.
You find the Mystery Jeans Inc. promise
of 2,000 new jobs appealing, but you are
sceptical about how much this will
actually benefit Maquila people.
You know that Mystery Jeans Inc. uses a
much more automated process (sewing
machines) than local garment companies
and thus employs fewer people to make
the same number of garments. (Statistics
have shown that the expansion of global
corporations has contributed to the
expansion of world unemployment. The
sales of the world’s top 200 corporations
are equivalent of 27.5 percent of the
world economic activity, yet they only
employ 0.78 percent of the world’s
workforce.) Modernisation may increase
"efficiency", but people lose jobs.
Wages within the global corporations are
frequently low - much lower than wages
for comparable work in First World
countries.
Even though wages paid by global
corporations are sometimes above
average wages received by workers in
the developing world, they are frequently
less than subsistence.
The company will bring in new
technology, but this will mean work is
more automated, more routine and less
highly skilled. This kind of technology is
very expensive. It makes more sense,
given the high unemployment rate, to use
more labour and simpler technology.
•
•
•
•
You stand to benefit greatly from the
presence of Mystery Jeans Inc. in this
country.
The new plant will attract other industry
and service, and land prices will rise.
You know that multinational corporations
can raise the GNP of a country. (For
example, since the establishment of the
North American Free Trade Agreement
(NAFTA) in 1994, business began flowing
in from the US. Trade with the United
States and Canada has nearly doubled
since the North American Free Trade
Agreement (NAFTA) was implemented in
1994.)
Mexico profits from a thriving garment
industry, where the Mexican government
allows U.S. companies to ship parts to
border assembly plants without paying
duties along the border. Many products
are assembled inexpensively by Mexican
labourers at U.S.-owned plants in Mexico,
and then exported back to the United
States and elsewhere.
Maquila needs foreign trade in order to
develop its economy, and international
trade is largely controlled by multinational
corporations like Mystery Jeans Inc.
31
SECOND CITIZEN
You are a community worker in Maquila. You
work with and are concerned about the poor
of this country.
You are opposed to Mystery Jeans Inc.
building a plant here because you believe that
multinational investment negatively affects the
development of developing countries.
You think of the example of Mexico, where
multinational investments have skyrocketed
since the North American Free Trade
Agreement (NAFTA) in 1994. Since then, the
GDP has increased from $330 Billion in 1996
to $614 Billion in 2001, but 40% of the
population remain below the poverty line.
Because multinationals control international
trade, they control prices and profits.
International
companies
trade
among
themselves and make profits in the process profits that go to shareholders in the First
World and not to developing countries.
Profits are high for multinationals in the
developing world.
32
ACTIVITY 3
LEVELS:
Grade 12, University Preparation
COURSES AND EXPECTATIONS:
Canada and World Issues
SSV.02, SS2.04, GC2.01, GC3.01,
UC1.02
TASK:
Students will watch a film on
globalisation that summarizes the
role of international economic
institutions in the global economy.
EXPECTATIONS:
The student will:
• Discuss the various
perspectives of different
stakeholders in a community.
•
Discuss the impact of MNCs on
human rights and the
environment.
•
Discuss how people’s livelihood
is affected by the global
economy.
TIMEFRAME:
20 Minutes
ACHIEVEMENT CATEGORIES:
Knowledge / Understanding
Thinking / Inquiry
Communication
Application / Making Connections
MATERIALS:
Video
VOCABULARY:
Multi-National Corporations
WTO
IMF
Race to the Bottom
Lilliput Strategy
MAI
33
Procedure
Watch the film “Global Village or Global Pillage?” on how people around the world are challenging
corporate globalisation. This film can be borrowed by Ottawa teachers from World Inter-Action
Mondiale (www.web.net/~wia). Other globalisation films are listed in the resource section of this
module. Visit your local library or social justice groups for films in your area.
While your students are watching the film, provide a list of questions that would be suitable for
discussion on global corporations and financial institutions.
Examples of questions:
• Discuss the role of global financial institutions in the global economy. Discussion could
focus on the world trade organization, IMF and World Bank.
• What is the relationship between multi-national corporations (global corporations) and
international financial institutions?
• Why are so many people upset about these financial institutions and the growth of
global corporations?
• What are some alternatives to corporate dominance?
• How do they affect you?
34
ACTIVITY 4
LEVELS:
Grade 12, University Preparation
COURSES AND EXPECTATIONS:
Canada and World Issues
HE2.06, GCV.01, GCV.02, GC3.02
TASK:
As a group homework assignment,
your students will design an
informative and interactive poster
on a major global corporation.
EXPECTATIONS:
The student will:
• Evaluate the performance of
selected global corporations in
terms of human rights and
environmental standards.
•
Discuss how MNCs are
impacted by trade policies.
•
Determine the impact of
national policies and
international agreements on
corporations.
TIMEFRAME:
2 hours
ACHIEVEMENT CATEGORIES:
Knowledge / Understanding
Thinking / Inquiry
Communication
Application / Making Connections
MATERIALS:
Worksheet
VOCABULARY:
Multi-National Corporations
Trade agreements
Corporate ethics
35
Procedure
1. It is recommended that you assign this activity to your class prior to starting Unit 1. Give your
students two weeks to complete the assignment adequately.
2. Divide your class into groups of 4 and hand out Student Worksheet 2.
3. Assign the group one of the following global corporations to research:
• General Motors
• Wal-Mart
• Exxon Mobil
• Ford Motor
• Daimler Chrysler
• IBM
• Sony
• Hewlett-Packard
• PepsiCo
• Worldcom
• Enron
• Texaco
• Nestle
Students can also choose other corporations not on this list.
4. The assignment is as follows:
Develop a profile of the corporation you have selected. Your profile must include the following:
• The corporation’s logo
• Mandate
• Location of headquarters
• Countries where the corporation’s products are produced
• Information on the use of child and sweatshop labour in the factories used by the
corporation.
• CEO
• Date of establishment
• Recent mergers
• Type of products
• Brand names owned by the corporation
• Target audience
• Your group’s analysis of the corporations track record on environmental, social,
economic and labour issues.
• Any other information that would be useful for your classmates to know
Present your findings on a poster. The poster should contain the following information:
•
•
•
•
A summary of the corporation you have chosen using the information listed above.
An interactive aspect that engages the other students in your class (For example, a
quiz on various components of the MNC.)
Creativity! Your poster will be displayed in the class as part of a corporation tour.
You need to encourage other students in your class to read your poster.
Your group will give a five minute summary of your findings to the class later in Unit 3
of this Module.
5. In the third unit, the groups will be asked to display their poster in the class and your students
will go on a corporate tour by reading the various profiles.
36
GROUP MEMBER’S NAMES
STUDENT WORKSHEET 2
BACKSTAGE OF A MNC
Date: _____________________
YOUR ASSIGNMENT:
The assignment is as follows:
Develop a profile of the corporation you have selected. Your profile must include the following:
• The corporations logo
• Mandate
• Location of headquarters
• Countries where the corporation’s products are produced
• Information on the use of child and sweatshop labour in the factories used by the
corporation.
• CEO
• Date of establishment
• Recent mergers
• Type of products
• Brand names owned by the corporation
• Target audience
• Your group’s analysis of the corporations track record environmental, social,
economic and labour issues.
• Any other information that would be useful for your classmates to know
Present your findings on a poster. The poster should contain the following information:
•
•
•
•
A summary of the corporation you have chosen.
An interactive aspect that engages the other students in your class (For example, a
quiz on various components of your assigned MNC.)
Creativity! Your poster will be displayed in the class as part of a corporate tour. You
need to encourage other students in your class to read your poster.
Your group will give a five minute summary of your findings to the class later in Unit 3
of this Module.
37
UNIT 2: THE GLOBAL ECONOMY
Class Time: 75 Minutes
Description
This lesson takes the form of a simulation game. Your students will become major players in the
global economy to find out what role major economic global institutions play in trade and how
countries engage in international trade (See Activity 5). As a homework assignment, your
students will be asked to analyse the impact of global trade on a selected country.
Curriculum Expectations
The Global Economy Game
Overall Expectations
SSV.02 – analyse the causes and effects of economic disparities around the world.
HEV.01 – analyse selected global trends and evaluate their effects on people and environments
at the local, national, and global level.
GCV.01– demonstrate an understanding of the interdependence of countries in the global
economy.
Specific Expectations
SS1.01 – demonstrate an understanding of the interdependence of ecology and economics.
SS1.05 – identify ways in which countries and regions of the world are becoming increasingly
interdependent.
HE2.06 – explain ways in which trade policies or agreements may affect the environment.
GC2.01 – analyse the economic and environmental consequences for selected countries of
colonialism in the past and economic colonialism in the present.
Prior Knowledge and Skills
•
•
•
Awareness of concepts of international trade (e.g. export, import, global corporations).
Some knowledge of global economic institutions and regulations (e.g. IMF, World Bank, IMF,
GATT, NAFTA).
Web searching, critical thinking, group work.
Planning Notes
•
•
•
•
Photocopy Supplementary Sheets 3 to 8.
Photocopy Student Activity Sheets 4 to 8.
Read the instructions and game cards thoroughly. You should spend an hour reading and
preparing the game to be comfortable with it.
Review the glossary of terms and be prepared to define any for the class.
Teaching/Learning Strategies
Most of the learning strategies are described in each activity, but here are some of the overall
strategies for the unit.
• Introduce students to the concept of the global economy.
38
•
•
•
•
•
•
Examine the historical path of globalisation by identifying the policies and international
commitments and the effect of the implementation of local, national, and global issues.
Identify individuals who have made a significant contribution to globalisation.
Introduce the students to new vocabulary and the new concepts listed in each activity. Refer
them to the glossary.
Refer the students to the accompanying material, the supplementary sheets, and where to go
find information.
Assign students the suggested homework and encourage students to do an in-depth analysis
of the information provided and to research the websites given.
Monitor the group work and simulation games so the benefits are maximized for your
students.
Accommodations
Frequent monitoring and assistance should be provided. Accommodations that are normally
provided in the regular classroom for students with special needs should be provided. Here are
some strategies for helping them.
• Information should be presented in as many modalities as possible through oral
presentations, board notes, diagrams, class discussions and activity-based learning.
• Instructions should be clear, concise, to the point, verbally rehearsed by the student, properly
sequenced, reviewed after a time lapse, written down on the board or in a notebook.
• Assignments should be outlined in writing, written in the students’ homework/assignment
book, written (and left) on the blackboard, broken down step by step with the teacher,
rehearsed/modelled, and scheduled step by step.
• Questioning should be clear and concise, allowing for appropriate response time. Students
need to organise their thoughts, match them with appropriate vocabulary, put them in correct
syntax, sequence the ideas and finally express them with good speech. These skills are often
taken for granted when teaching new concepts.
• Encourage students to question for clarification and additional information. Learn to speak
clearly and slowly. Avoid figurative language unless it has been specifically pre-taught.
Encourage and evaluate oral responses and class participation. Allow extra time (e.g.
homework) for students to complete assignments that other students may finish in class time.
Create extra practice opportunities wit new vocabulary or concepts. Provide overviews or
lesson highlights at the beginning of class. Discuss and simplify sophisticated vocabulary or
language. Finally, give several short assignments rather than one long one.
39
Assessment and Evaluation of Student Achievement
Lesson Plans
Unit 2
The Global Economy
Game
Categories
Knowledge /
Understanding
Performance
Assessment
Personal
Communications
-Simulation game (Role
play)
-In-class group
discussions to find what
role major economic
global institutions play
in trade and how
countries engage in
international trade.
-Open-ended questions
-Research (Homework To analyse the impact
of global trade on a
selected country.
(See Rubric –
Analysing the impact of
global trade on a
selected country)
-Allows for assessing
basic creative thinking
skills.
-Allows for more indepth questioning about
how countries are
interdependent;
encourages students to
explain their reasoning.
-Discussions and
debriefing
-Debating
-In-class discussions
-Allows for expression
of thoughts and
communicating ideas
verbally on how trade
policies affect the
environment and the
consequences of
economic colonialism.
-Simulation game (Role
play)
-Method to get
‘authentic’ and
simulated real word
performance.
Formative
and Summative
Thinking / Inquiry
Formative
and Summative
Communication
Formative
and Summative
Application / Making
Connections
Formative
and Summative
40
Rubric Evaluation of Student Achievement
Task Rubric – Impact of Global Trade on ____________________ (COUNTRY’S NAME)
Expectations
Criteria
Knowledge / understanding
SS1.01
SS1.05
GCV.01
• Demonstrate an
understanding of the
interdependence of
countries, ecology and
global economy.
• Identify ways in which
countries and regions of the
world are becoming
increasingly interdependent.
Level 1 (50 – 59)
Level 2 (60 - 69)
Level 3 (70 – 79)
Level 4 (80 – 100)
• Shows limited knowledge in
understanding the
interdependence of countries,
ecology and global economy.
• Shows limited knowledge in
identify ways in which
countries and regions of the
world are becoming
increasingly interdependent.
• Shows some knowledge in
understanding the
interdependence of countries,
ecology and global economy.
• Shows some knowledge in
identify ways in which
countries and regions of the
world are becoming
increasingly interdependent.
• Shows considerable
knowledge in understanding
the interdependence of
countries, ecology and global
economy.
• Shows considerable
knowledge in identify ways in
which countries and regions of
the world are becoming
increasingly interdependent.
• Shows thorough knowledge in
understanding the
interdependence of countries,
ecology and global economy.
• Shows thorough knowledge in
identify ways in which countries
and regions of the world are
becoming increasingly
interdependent.
• Limited analysis of the
causes and effects of
economic disparities around
the world.
• Limited analysis of the
economic and environmental
consequences for selected
countries of colonialism in
the past and in the present.
• Some analysis of the causes
and effects of economic
disparities around the world.
• Some analysis of the
economic and environmental
consequences for selected
countries of colonialism in
the past and in the present.
• Considerable analysis of the
causes and effects of
economic disparities around
the world.
• Considerable analysis of the
economic and environmental
consequences for selected
countries of colonialism in the
past and in the present.
• Thorough analysis of the causes
and effects of economic
disparities around the world.
• Thorough analysis of the
economic and environmental
consequences for selected
countries of colonialism in the
past and in the present.
• Explain ways in which trade
policies or agreements may
affect the environment.
• Limited explanation of the
ways in which trade policies
or agreements may affect the
environment.
• Some explanation of the
ways in which trade policies
or agreements may affect the
environment.
• Considerable explanation of
the ways in which trade
policies or agreements may
affect the environment.
• Thorough explanation of the
ways in which trade policies or
agreements may affect the
environment.
• Analyse selected global
trends and evaluate their
effects on people and
environments at the local,
national, and global level.
• Produce a very limited
analysis of selected global
trends and a very limited
evaluation of their effects on
people and environments at
the local, national, and global
level.
• Produce a limited analysis of
selected global trends and a
limited evaluation of their
effects on people and
environments at the local,
national, and global level.
• Produce an appropriate
analysis of selected global
trends and an appropriate
evaluation of their effects on
people and environments at
the local, national, and global
level.
• Produce a very detail and
effective analysis of selected
global trends and a thorough
evaluation of their effects on
people and environments at the
local, national, and global level.
Thinking / Inquiry
SSV.02
GC2.01
• Analyse the causes and
effects of economic
disparities around the
world.
• Analyse the economic and
environmental
consequences for selected
countries of colonialism in
the past and in the present.
Communication
HE2.06
Application
HEV.01
41
Resources
1. Christian Aid. 2000. The Debt Game.
2. MacCuish, Derek. 2000. Pillaged Lives: Third World Debt and Global Institutions. The Social
Justice Committee of Montréal. Montréal, Québec.
3. New Internationalist: 320. 2000
42
ACTIVITY 5
LEVELS:
Grade 12, University Preparation
COURSES AND EXPECTATIONS:
Canada and World Issues
HE2.06, GC3.04, UCV.03, UC1.02,
UC2.03
TASK:
Your students will engage in a
simulation game about the global
economy.
EXPECTATIONS:
The student will:
• Examine how countries are
interdependent.
• Discuss how trade policies affect
the environment.
• Examine the consequences of
economic colonialism.
TIMEFRAME:
75 Minutes
ACHIEVEMENT CATEGORIES:
Knowledge / Understanding
Thinking / Inquiry
Communication
Application / Making Connections
MATERIALS:
Supplementary Sheets 2 to 7;
Student Worksheets 3 to 7; Red and
Green Beads; Containers for beads;
Scissors, Markers
VOCABULARY:
Economic colonialism
International trade
*Beads can be substituted for coloured squares of paper
43
Procedure
1. Your students are going to become major players in the global economy. Make sure you
review the entire game before playing. It is also recommended that you review the
background section of this module. Give each student a copy of the Student Instructions.
2. Use the chart below to determine the total number of role cards you will need:
PLAYERS LIST
Total Number of Students
Role
12 14 16
G Country – Player 1 1 2 2
G Country – Player 2 1 2 2
L Country – Player 1 3 4 4
L Country – Player 2 3 4 4
Local Banker G
1 T 1
Local Banker LDC
1 T 1
WTO
1 1 1
World Bank / IMF
1 1 1
Total Check
12 14 16
18
2
2
5
5
1
1
1
1
18
19
2
2
6
6
1
1
1
T
19
20
2
2
6
6
1
1
1
1
20
21
3
3
6
6
1
1
1
T
21
22
3
3
6
6
1
1
1
1
22
23
3
3
6
6
1
1
1
2
23
24
3
3
7
7
1
1
1
1
24
25
3
3
7
7
1
1
1
2
25
26
3
3
8
8
1
1
1
1
26
28
3
3
9
9
1
1
1
1
28
30
3
3
10
10
1
1
1
1
30
Legend
T=
G Country =
L Country =
IMF =
WTO =
Teacher
Western Country
Southern Country or Lesser Developed Country
International Monetary Fund
World Trade Organization
3. You will need the following materials:
•
•
•
•
•
•
•
•
•
•
Health and Education Budget Sheets (1 per G and LDC Country) (See Student Worksheet 3)
Banker Sheets (cut in half for each banker) (See Student Worksheet 4)
2 copies of the IMF/WB Loan Sheet (1 for WB/IMF representative(s)) (See Student
Worksheet 5)
WTO Fine Sheet (1 for WTO representative(s)) (See Student Worksheet 6)
Trade checklist (I per G and LDC country)(See Student Worksheet 7)
Total Beads needed for your class size (See Supplementary Sheet 2)
Total Money needed for your class size (See Supplementary Sheet 3)
Role Cards (enough for each student). Follow the guide above for how many role cards you
need) (See Supplementary Sheet 4)
Trading Cards (See Supplementary Sheet 5, 6 and 7)
Name Tags (1 per student)
Use the sample for a class size of 24 as an example for total number of bills and beads.
44
EXAMPLE FOR CLASS OF 24 STUDENTS:
The following is an example of the distribution of beads and bills for a class of 24 students.
Players: Using the chart “Player’s List” from the teacher’s instructions, you will see that for a
class of 24 students, there should be the following roles:
Roles
7 LDC Countries (2 players/LDC)
3 G Countries (2 players/G Country)
1 Local Banker G
1 Local Baker LDC
1 WTO
1 WB/IMF
Total
Total Number of Students
14 students
6 students
1 student
1 student
1 student
1 student
24 Students
Beads: Using the Supplementary Sheet 2 chart: Total number of Beads and Bills, you will
see that you need a total of 126 red beads and 63 green beads. Each G country receives 7
green beads each round from their banker (1 green bead/ LDC). Each LDC country receives
6 red beads each round (2 red beads/G country).
Money: Using the same chart, you will see that you will need to photocopy the following
quantity and denomination of bills:
Bills
Total Number of each Bill
$5s
$10s
$20s
34
37
100
Bills are found in Supplementary Sheet 3.
Each country receives $100 million at the start of the game from their banker in the
following denominations:
Bill
5's
10's
20's
Total Number of bills to each G country
2
3
3
4. Hand out the role cards to the class randomly (See Supplementary Sheet 4). Make sure that
you follow the guide above for total numbers. In most cases, you will have two students per
country. They will share the role. Allow the players 5-10 minutes to review their role with their
partner and determine their strategy.
5. Distribute nametags to everyone. Have everyone write the name of their country (e.g. G1 or
LDC 2) on the name tag and wear the nametag so that it is visible.
6. Explain that the purpose of the game is to keep the education and health services running in
their country. In order to do this, countries must trade their goods.
7. Have the local banker (G Banker and LDC Banker) hand out the following:
45
•
•
•
•
Instruction sheets for Trading Round 1 (See Supplementary Sheet 5)
The education and health budget sheets (See Student Activity Sheet 3)
The red and green beads (See Supplementary Sheet 2)
$100 Million to each country (See Supplementary Sheet 2 and 3)
The money is used to buy imported goods for the country. Countries do not have access to
any more money at this stage. Once the banker has distributed everything, give everyone
another 5-10 minutes to review his or her trading round cards. While your students are
reviewing their instructions, circulate to make sure everyone understands the instructions.
8. When everyone is ready, the first round of trading can begin.
9. Once the trading is completed, countries must fill out their budget forms (financial, education
and health). At this point, both the WTO representative and World Bank representative (s) will
be circulating among the LDC countries. If a country can’t balance its budget, it must take out
a loan in multiples of either $100 million or $200 million.
10. Have the students return to their seats.
11. When everyone is ready, the second round of trading can begin.
12. Once the trading is completed, countries must fill out their budget forms (financial, education
and health). At this point, both the WTO representative and World Bank representative (s) will
be circulating among the LDC countries. If a country can’t balance its budget, it must take out
a loan in multiples of either $100 million or $200 million.
13. Once the countries have worked out their budgets, they must deposit their health and
education money in their local bank. The local banker will then give the countries the
instruction sheets for Round 3 and the right number of red/green beads.
14. Have the students return to their seats.
15. When everyone is ready, the third round of trading can begin.
16. Once the trading is completed, countries must fill out their budget forms (financial, education
and health). At this point, both the WTO representative and World Bank representative (s) will
be circulating among the LDC countries. If a country can’t balance its budget, it must take out
a loan in multiples of either $100 million or $200 million.
17. Once the countries have worked out their budgets, they must deposit their health and
education money in their local bank.
18. Have the students return to their seats. Give your students a few seconds to return all the
beads, money and role cards and then begin a discussion on the game using the questions
listed below:
46
DEBRIEFING SESSION
Begin by asking your students to express their feelings about the game and their roles.
Suggested Questions:
• Ask the country groups how much money they have left. What are their debts? How did they
reach a position of surplus/deficit?
• What were the priorities for each country when deciding their budgets? Why? Did their
priorities change during the game? If so, why?
• What do the red and green beads represent? Why do you think there is a difference in price between
•
•
•
•
•
•
•
•
•
red and green beads?
In reality, what items dominate country budgets?
Do these priorities change when a country is in debt?
What were your impressions of the trade rules? Were they fair/unfair?
Can you explain the role of the IMF, World Bank and World Trade Organization?
Discuss the impact of international trade on rich and poor countries. Based on the game, who
seems to benefit?
What can be done to relieve poor countries of their debt burden?
Discuss how this simulation reflects international trade in the world.
As a citizen of Canada, what is your role in international trade?
What can you do to improve this situation of trade imbalance?
After the debriefing, summarize international trade using the background information provided.
SUGGESTED HOMEWORK
1. How would you define the term "globalized” economy?
2. Choose a country in the world and provide specific examples of how it has
been affected by globalisation.
3. Has the country you chose benefited from globalisation of the world
economy? Why or why not?
4. Support your conclusions with specific examples of benefits or losses.
47
STUDENT INSTRUCTIONS
You are about to start playing a simulation game on the global economy. You
are going to play the role of a major participant in this simulation on world trade.
The game consists of the following players:
G Countries –
LDC Countries –
IMF /WB –
WTO –
LDC Banker –
G Banker –
Represent wealthy countries or western countries
Represent Lesser developed Countries (LDCs) or
Third World Countries
Represents the major lending institution in the global
economy
Regulates trade between countries
Banker for LDC Countries that processes health and
education budgets and distributes country revenue
and resources (beads)
Banker for G Countries that processes health and
education budgets and distributes country revenue
and resources (beads)
Each country starts the game with $100 Million from the bank. This money is
used to engage in trade with other countries. LDC countries are trading red
beads and G countries are trading green beads. Income earned from trade will
be used to pay for health and education services. While the countries are
trading, the WTO will circulate among the countries to ensure that trade is
running smoothly.
There will be three rounds of trade. After each round of trade, each country will
allocate their income to health and education services in their countries. Each
country must spend a minimum of $100 million on health and education. This
money gets deposited with the bank. Some countries may find that they do not
have enough money to pay for their health and education requirements. They
will have to borrow from the IMF/WB.
48
STUDENT WORKSHEET SHEET 3
Name:
___________________
Date: ___________________
Health and Education Budget Sheet
Education Budget
Budget Item
Renovate primary school buildings
Primary school teacher’s salaries
Primary school equipment (desks, chairs)
Primary school exercise books and pencils
Primary school textbooks
Subsidies on primary school lunches
Subsidies on primary school uniforms
Subsidies on primary school children’s bus
Fares
Maintenance of primary school buildings
(lights, windows, roofs)
Cost
4 Million
6 Million
3 Million
2 Million
3 Million
2 Million
2 Million
2 Million
Round 1
Round 2
Round 3
Round 2
Round 3
3 Million
Building or renovating secondary schools
4 Million
Secondary school teacher’s salaries
6 Million
Secondary school equipment (desks, chairs) 3 Million
Secondary school textbooks
3 Million
Scholarships for secondary school students 3 Million
Sports facilities for secondary schools
3 Million
Renovating of building universities
University teacher’s salaries
University equipment (includes labs)
Scholarships for university students
Research facilities at universities
Sports facilities for universities
6 Million
6 Million
5 Million
3 Million
4 Million
2 Million
Total
75 Million
Health Budget
Budget Item
Build 1 new hospital
Doctors’ salaries
Nurses’ salaries
X-ray equipment for 5 hospitals
Intensive care units for 5 hospitals
Medical supplies for 1 hospital for one year
Equip 5 operating rooms
Cost
24 Million
10 Million
5 Million
2 Million
10 Million
5 Million
10 Million
Equip and maintain 10 mobile health clinics
Train 50 community health workers
Medical supplies for 10 health clinics
Immunisation for all babies
1 Million
1 Million
1 Million
1 Million
Health education in all schools
Salaries for 100 community health workers
1 Million
1 Million
Total
Round 1
75 Million
49
Name:
___________________
STUDENT WORKSHEET SHEET 4
DATE: ___________________
Banker Sheet
Bankers: Use this sheet to document the total amount budgeted for education and health for each
country. Each country must spend a minimum of $100 total on the combined budget.
THE G3 COUNTRIES
BANK RECORD
COUNTRY
EDUCATION BUDGET
TOTAL
Round 1 Round 2 Round 3
HEALTH BUDGET TOTAL
Round 1
Round 2
Round 3
G1
G2
G3
-------------------------------------------------------------------------------------------------------Cut in half and give top half to G Country Banker and the Bottom Half to LDC Country Banker
---------------------------------------------------------------------------------------------------
Name:
___________________
STUDENT WORKSHEET SHEET 4
DATE: ___________________
Banker Sheet
Bankers: Use this sheet to document the total amount budgeted for education and health
for each country. Each country must spend a minimum of $100 total on the combined budget.
THE LDC COUNTRIES
BANK RECORD
COUNTRY
EDUCATION BUDGET
TOTAL
Round 1 Round 2 Round 3
HEALTH BUDGET TOTAL
Round 1
Round 2
Round 3
LDC 1
LDC 2
LDC 3
LDC 4
LDC 5
LDC 6
LDC 7
LDC 8
LDC 9
LDC 10
50
STUDENT WORKSHEET SHEET 5
IMF/WB LOAN SHEET
DATE: _________________
Name:
___________________
Use this sheet to keep track of the loans you issue, the amount of interest charged and
the amount owed. You will need two copies of this sheet.
COUNTRY
SAMPLE
LOAN ISSUED
(Millions)
100
INTEREST RATE
10%
TOTAL OWED
(Millions)
MINIMUM
PAYMENT
(Interest)
100+(10%X100)
110
10%X100
10
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
51
Name:
___________________
STUDENT WORKSHEET SHEET 6
WTO TRADING FINES
DATE: _______________
Cut out the fine cards and give them to the WTO representative.
FINE
FINE
$5 Million
For Illegal Trading
$5 Million
For Illegal Trading
FINE
FINE
$5 Million
For Illegal Trading
$5 Million
For Illegal Trading
FINE
FINE
$5 Million
For Illegal Trading
$5 Million
For Illegal Trading
FINE
FINE
$5 Million
For Illegal Trading
$5 Million
For Illegal Trading
FINE
$5 Million
For Illegal Trading
52
STUDENT WORKSHEET SHEET 7
TRADING CHECKLIST FOR G COUNTRIES
DATE: ________________
NAME:
__________________
Photocopy enough for each country.
Check off the countries you have visited in your trade round. You must visit all countries
each round. Use this sheet as a checklist to keep track of which countries you need to
visit. Make sure you know how many LDC countries there are in the game.
COUNTRY
LDC 1
LDC 2
LDC 3
LDC 4
LDC 5
LDC 6
LDC 7
LDC 8
LDC 9
LDC 10
TRADE 1
TRADE 2
TRADE 3
--------------------------------------------------------------------------------------------------------Cut this page in half and give the top to the G countries and the bottom to each LDC country
----------------------------------------------------------------------------------------------------
STUDENT WORKSHEET SHEET 7
TRADING CHECKLIST FOR LDC COUNTRIES
DATE: _______________
Name:
_________________
Check off the countries you have visited in your trade round. You must visit all countries
each round. Use this sheet as a checklist to keep track of which countries you need to
visit. Make sure you know how many G countries there are in the game.
COUNTRY
TRADE 1
TRADE 2
TRADE 3
G1
G2
G3
53
Name:
___________________
SUPPLEMENTARY SHEET 2
TOTAL BEADS AND MONEY REQUIRED
DATE: ___________________
Total number of bills and beads
Total Students
Per
Capita
10
12
14
16
18
20
22
24
26
28
30
32
Red Beads
Green Beads
$ 5's
$ 10's
$ 20's
6
3
6
7
16
18
9
14
15
42
18
9
14
15
42
48
24
20
22
58
48
24
20
22
58
60
30
24
26
71
72
36
28
30
84
108
54
30
33
87
126
63
34
37
100
144
72
38
41
113
162
81
42
45
126
180
90
46
49
139
198
99
50
53
152
Distribution of starting money to Countries
Bills
Round 1
Total Number of bills to each country
$ 5's
2
$ 10's
3
$ 20's
3
$
Green Bead Price
40
Red Bead Price
15
Health and Ed Costs 100
Loan available
100
Interest on Loan
0
Summary of Economy
Round 2
$
Green Bead Price
40
Red Bead Price
10
Health and Ed Costs 100
Loan available
100
Interest
10
Round 3
$
Green Bead Price
40
Red Bead Price
5
Health and Ed Costs 100
Loan available
200
Interest on Loan
20
54
Name:
___________________
SUPPLEMENTARY SHEET 3
MONEY SHEETS
DATE: ____________________
55
56
57
SUPPLEMENTARY SHEET 4
INITIAL ROLE CARDS
Distribute using the table found in your guidelines
WORLD BANK
You are the representative for the World Trade
Organization (WTO). The WTO was created in 1995 to
replace The General Agreement on Tariffs and Trade
(GATT). GATT was established in 1948 to resolve trade
disputes though a series of negotiating rounds. It
comprised of 23 of the richest Western countries. At the
Uruguay Round in 1987, it was decided that a more
formal institution was needed to enforce trade-related
decisions. In 1995, the WTO was established to enforce
free market values on the global economy with the use
of sanctions and fines.
The local banker for G countries will hand you your first
trading card before the first round.
IMF
You are the representative for the World Bank
and IMF. The World Bank was one of several
financial institutions set up at the end of World
War II which aimed to produce an international
post-war economic system. The World Bank
lends money for long-term development and
loans must be repaid over fifteen to twenty
years.
The IMF mandate is to regulate an
international monetary system to facilitate
global trade. It also lends money to members
having trouble meeting their financial
obligations to other members on the condition
that they undertake economic reforms.
The local banker for G countries will hand you
your trading card and loan sheet before the
first round.
58
*Note: You will assign one role card to two students for each G country
G1 Country
You are a wealthy country that sells green beads in the global economy. You will be visiting the LDC countries and
trading green beads for red beads.
The first thing you need to do is fill out a nametag so that you can be identified by the other players in your class. Your
name tag should read: G1.
Next, you must go to your local banker to collect the following items:
•
Your first round of green beads (You will be given 1 green bead for every LDC country)
•
$100 Million for trading
•
Your first round of trading instructions
•
Trading Checklist
•
Health and education budget sheets
The main objective in trading is to ensure that your health and education services continue to run smoothly. This is
achieved by selling green beads to LDCs. You can use the profits from selling green beads to invest in your country’s
health and education. When filling out your health and education budgets, you must spend a minimum of $100 Million on
health and education each round. If you do not have enough money, you will have to borrow from the World Bank and
IMF. Your first trading card will be distributed shortly. When you receive your first trading card, read it thoroughly and
wait for your teacher to instruct you to start trading.
G2 Country
You are a wealthy country that sells green beads in the global economy. You will be visiting the LDC countries and
trading green beads for red beads.
The first thing you need to do is fill out a nametag so that you can be identified by the other players in your class. Your
name tag should read: G2.
Next, you must go to your local banker to collect the following items:
•
Your first round of green beads (You will be given 1 green bead for every LDC country)
•
$100 Million for trading
•
Your first round of trading instructions
•
Trading Checklist
•
Health and education budget sheets
The main objective in trading is to ensure that your health and education services continue to run smoothly. This is
achieved by selling green beads to LDCs. You can use the profits from selling green beads to invest in your country’s
health and education. When filling out your health and education budgets, you must spend a minimum of $100 Million on
health and education each round. If you do not have enough money, you will have to borrow from the World Bank and
IMF. Your first trading card will be distributed shortly. When you receive your first trading card, read it thoroughly and
wait for your teacher to instruct you to start trading.
59
*Note: You will assign one role card to two students for each G country
G3 Country
You are a wealthy country that sells green beads in the global economy. You will be visiting the LDC countries and
trading green beads for red beads.
The first thing you need to do is fill out a nametag so that you can be identified by the other players in your class. Your
name tag should read: G3.
Next, you must go to your local banker to collect the following items:
•
Your first round of green beads (You will be given 1 green bead for every LDC country)
•
$100 Million for trading
•
Your first round of trading instructions
•
Trading Checklist
•
Health and education budget sheets
The main objective in trading is to ensure that your health and education services continue to run smoothly. This is
achieved by selling green beads to LDCs. You can use the profits from selling green beads to invest in your country’s
health and education. When filling out your health and education budgets, you must spend a minimum of $100 Million on
health and education each round. If you do not have enough money, you will have to borrow from the World Bank and
IMF. Your first trading card will be distributed shortly. When you receive your first trading card, read it thoroughly and
wait for your teacher to instruct you to start trading.
*Note: You will assign one role card for two students for each LDC country
LDC 1
You are a developing country that sells red beads in the global economy. You will be visiting the G countries and trading
red beads for green beads.
The first thing you need to do is fill out a nametag so that you can be identified by the other players in your class. Your
name tag should read: LDC 1.
Next, you must go to your local banker to collect the following items:
•
Your first round of red beads (You will be given 2 red beads for every G country)
•
$100 Million for trading
•
Your first round of trading instructions
•
Trading Checklist
•
Health and education budget sheets
The main objective in trading is to ensure that your health and education services continue to run smoothly. This is
achieved by selling red beads to G Countries. You can use the profits from selling red beads to invest in your country’s
health and education. When filling out your health and education budgets, you must spend a minimum of $100 Million on
health and education. If you do not have enough money, you will have to borrow from the World Bank and IMF.
Your first trading card will be distributed shortly. When you receive your first trading card, read it thoroughly and wait for
your teacher to instruct you to start trading.
60
LDC 2
You are a developing country that sells red beads in the global economy. You will be visiting the G countries and trading
red beads for green beads.
The first thing you need to do is fill out a nametag so that you can be identified by the other players in your class. Your
name tag should read: LDC 2.
Next, you must go to your local banker to collect the following items:
•
Your first round of red beads (You will be given 2 red beads for every G country)
•
$100 Million for trading
•
Your first round of trading instructions
•
Trading Checklist
•
Health and education budget sheets
The main objective in trading is to ensure that your health and education services continue to run smoothly. This is
achieved by selling red beads to G Countries. You can use the profits from selling red beads to invest in your country’s
health and education. When filling out your health and education budgets, you must spend a minimum of $100 Million on
health and education. If you do not have enough money, you will have to borrow from the World Bank and IMF. Your first
trading card will be distributed shortly. When you receive your first trading card, read it thoroughly and wait for your
teacher to instruct you to start trading.
LDC 3
You are a developing country that sells red beads in the global economy. You will be visiting the G countries and trading
red beads for green beads.
The first thing you need to do is fill out a nametag so that you can be identified by the other players in your class. Your
name tag should read: LDC 3.
Next, you must go to your local banker to collect the following items:
•
Your first round of red beads (You will be given 2 red beads for every G country)
•
$100 Million for trading
•
Your first round of trading instructions
•
Trading Checklist
•
Health and education budget sheets
The main objective in trading is to ensure that your health and education services continue to run smoothly. This is
achieved by selling red beads to G Countries. You can use the profits from selling red beads to invest in your country’s
health and education. When filling out your health and education budgets, you must spend a minimum of $100 Million on
health and education. If you do not have enough money, you will have to borrow from the World Bank and IMF. Your first
trading card will be distributed shortly. When you receive your first trading card, read it thoroughly and wait for your
teacher to instruct you to start trading.
61
LDC 4
You are a developing country that sells red beads in the global economy. You will be visiting the G countries and trading
red beads for green beads.
The first thing you need to do is fill out a nametag so that you can be identified by the other players in your class. Your
name tag should read: LDC 4.
Next, you must go to your local banker to collect the following items:
•
Your first round of red beads (You will be given 2 red beads for every G country)
•
$100 Million for trading
•
Your first round of trading instructions
•
Trading Checklist
•
Health and education budget sheets
The main objective in trading is to ensure that your health and education services continue to run smoothly. This is
achieved by selling red beads to G Countries. You can use the profits from selling red beads to invest in your country’s
health and education. When filling out your health and education budgets, you must spend a minimum of $100 Million on
health and education. If you do not have enough money, you will have to borrow from the World Bank and IMF. Your first
trading card will be distributed shortly. When you receive your first trading card, read it thoroughly and wait for your
teacher to instruct you to start trading.
LDC 5
You are a developing country that sells red beads in the global economy. You will be visiting the G countries and trading
red beads for green beads.
The first thing you need to do is fill out a nametag so that you can be identified by the other players in your class. Your
name tag should read: LDC 5.
Next, you must go to your local banker to collect the following items:
•
Your first round of red beads (You will be given 2 red beads for every G country)
•
$100 Million for trading
•
Your first round of trading instructions
•
Trading Checklist
•
Health and education budget sheets
The main objective in trading is to ensure that your health and education services continue to run smoothly. This is
achieved by selling red beads to G Countries. You can use the profits from selling red beads to invest in your country’s
health and education. When filling out your health and education budgets, you must spend a minimum of $100 Million on
health and education. If you do not have enough money, you will have to borrow from the World Bank and IMF. Your first
trading card will be distributed shortly. When you receive your first trading card, read it thoroughly and wait for your
teacher to instruct you to start trading.
62
LDC 6
You are a developing country that sells red beads in the global economy. You will be visiting the G countries and trading
red beads for green beads.
The first thing you need to do is fill out a nametag so that you can be identified by the other players in your class. Your
name tag should read: LDC 6.
Next, you must go to your local banker to collect the following items:
•
Your first round of red beads (You will be given 2 red beads for every G country)
•
$100 Million for trading
•
Your first round of trading instructions
•
Trading Checklist
•
Health and education budget sheets
The main objective in trading is to ensure that your health and education services continue to run smoothly. This is
achieved by selling red beads to G Countries. You can use the profits from selling red beads to invest in your country’s
health and education. When filling out your health and education budgets, you must spend a minimum of $100 Million on
health and education. If you do not have enough money, you will have to borrow from the World Bank and IMF. Your first
trading card will be distributed shortly. When you receive your first trading card, read it thoroughly and wait for your
teacher to instruct you to start trading.
LDC 7
You are a developing country that sells red beads in the global economy. You will be visiting the G countries and trading
red beads for green beads.
The first thing you need to do is fill out a nametag so that you can be identified by the other players in your class. Your
name tag should read: LDC 7.
Next, you must go to your local banker to collect the following items:
•
Your first round of red beads (You will be given 2 red beads for every G country)
•
$100 Million for trading
•
Your first round of trading instructions
•
Trading Checklist
•
Health and education budget sheets
The main objective in trading is to ensure that your health and education services continue to run smoothly. This is
achieved by selling red beads to G Countries. You can use the profits from selling red beads to invest in your country’s
health and education. When filling out your health and education budgets, you must spend a minimum of $100 Million on
health and education. If you do not have enough money, you will have to borrow from the World Bank and IMF. Your first
trading card will be distributed shortly. When you receive your first trading card, read it thoroughly and wait for your
teacher to instruct you to start trading.
63
LDC 8
You are a developing country that sells red beads in the global economy. You will be visiting the G countries and trading
red beads for green beads.
The first thing you need to do is fill out a nametag so that you can be identified by the other players in your class. Your
name tag should read: LDC 8.
Next, you must go to your local banker to collect the following items:
•
Your first round of red beads (You will be given 2 red beads for every G country)
•
$100 Million for trading
•
Your first round of trading instructions
•
Trading Checklist
•
Health and education budget sheets
The main objective in trading is to ensure that your health and education services continue to run smoothly. This is
achieved by selling red beads to G Countries. You can use the profits from selling red beads to invest in your country’s
health and education. When filling out your health and education budgets, you must spend a minimum of $100 Million on
health and education. If you do not have enough money, you will have to borrow from the World Bank and IMF. Your first
trading card will be distributed shortly. When you receive your first trading card, read it thoroughly and wait for your
teacher to instruct you to start trading.
LDC 9
You are a developing country that sells red beads in the global economy. You will be visiting the G countries and trading
red beads for green beads.
The first thing you need to do is fill out a nametag so that you can be identified by the other players in your class. Your
name tag should read: LDC 9.
Next, you must go to your local banker to collect the following items:
•
Your first round of red beads (You will be given 2 red beads for every G country)
•
$100 Million for trading
•
Your first round of trading instructions
•
Trading Checklist
•
Health and education budget sheets
The main objective in trading is to ensure that your health and education services continue to run smoothly. This is
achieved by selling red beads to G Countries. You can use the profits from selling red beads to invest in your country’s
health and education. When filling out your health and education budgets, you must spend a minimum of $100 Million on
health and education. If you do not have enough money, you will have to borrow from the World Bank and IMF. Your first
trading card will be distributed shortly. When you receive your first trading card, read it thoroughly and wait for your
teacher to instruct you to start trading.
64
LDC 10
You are a developing country that sells red beads in the global economy. You will be visiting the G countries and trading
red beads for green beads.
The first thing you need to do is fill out a nametag so that you can be identified by the other players in your class. Your
name tag should read: LDC 10.
Next, you must go to your local banker to collect the following items:
•
Your first round of red beads (You will be given 2 red beads for every G country)
•
$100 Million for trading
•
Your first round of trading instructions
•
Trading Checklist
•
Health and education budget sheets
The main objective in trading is to ensure that your health and education services continue to run smoothly. This is
achieved by selling red beads to G Countries. You can use the profits from selling red beads to invest in your country’s
health and education. When filling out your health and education budgets, you must spend a minimum of $100 Million on
health and education. If you do not have enough money, you will have to borrow from the World Bank and IMF. Your first
trading card will be distributed shortly. When you receive your first trading card, read it thoroughly and wait for your
teacher to instruct you to start trading.
Local Banker – LDC Countries
You should have the following items in your possession:
•
•
•
Copies of role cards and trade cards for each of the three trading rounds for all countries.
$100 Million/country (3 $20s; 3 $10s; 2 $5s)
Record sheets to keep track of the money banked by each country for their health and education
expenditures
• Trading Checklist
• Health and Education Budget Sheets (1 per LDC Country)
• Red Beads – Produced by LDCs (They sell 2 red beads to each G Country so you need: 2 red
beads / G Country)
After each country group has read their role cards you are responsible for handing out the resources to each
country. Instruct LDC countries to line up at your table to collect the following:
• 2 red bead s/ G Country
• $100 Million/round (3 $20s; 3 $10s; 2 $5s)
• Trading Checklist
• Trade cards for round 1
When the first round of trading is finished:
• Your role is to take the money spent by each country on their annual Education and Health
Budgets. Make sure that they have spent a minimum of $100 Million total on health and education.
•
After recording the sums paid, give each country representative a copy of the next year’s trading
round instructions, $100 Million and replenish their beads with the same number as before.
•
If countries want to know about borrowing money, refer them to the World Bank/IMF
representative.
65
Local Banker – G Countries
You should have the following items in your possession:
•
•
•
•
•
•
•
Copies of role cards and trade cards for each of the three trading rounds for all countries.
$100 Million/country (3 $20s; 3 $10s; 2 $5s)
$100 Million/LDC country for the WB/IMF (e.g. If you have 7 LDCs, you will need to have $700
Million)
Record sheets to keep track of the money banked by each country for their health and education
expenditures
Trading Checklist
Health and Education Budget Sheets (1 per G Country)
Green Beads
– Produced by G Countries They sell 1 green bead to each LDC Country so you
need: 1 green bead / LDC Country)
After each country group has read their role cards you are responsible for handing out the resources to each
country. Instruct the G countries to line up at your table to collect the following:
• 1 green bead / LDC Country
• $100 Million/round (3 $20s; 3 $10s; 2 $5s)
• Trading Checklist
• Trade cards for round 1
Give the IMF/WB:
o Trading Card for round 1
o Loan sheet
o 4 ($100 Million/LDC) (e.g. If you have 10LDCs, you need 30 $100s)
Give the WTO:
• Trading Card for round 1
• Fine cards
When the first round of trading is finished:
• Your role is to take the money spent by each country on their annual Education and Health
Budgets.
•
After recording the sums paid in, give each country representative a copy of the next year’s
Trading round instructions and replenish their beads with the same number as before.
•
If countries want to know about borrowing money, refer them to the World Bank/IMF
representative.
66
SUPPLEMENTARY SHEET 5
TRADING ROUND 1
WORLD BANK
IMF
ROUND 1
You are responsible for ensuring that trade between
countries is running smoothly. There are two rules
that every country should follow:
1. Countries are not allowed to give preferential
treatment to one country over another (e.g.
Preferring Country 2’s red beads over country
3’s).
2. Countries are not allowed to discriminate against
one country’s goods on the basis of
environmental or social grounds (e.g. if a product
is produced under poor labour standards).
While countries are trading beads, you are
responsible for ensuring that trade is occurring
without these discriminatory practices.
ROUND 1
Your job begins after Round 1 of trading.
While the LDC Countries are filling out their
budget forms for round 1, visit them and offer
loans to each of the country’s representatives.
They may borrow either $100 Million or $200
Million each round.
The rate of interest for loans is 10% at the
moment (you should explain that interest rates
may vary)
Keep a record of the loans you make, the interest
charged and the sum owed.
You have received an anonymous report from a
country that states that G1 and LDC 1 and 2 are
breaking these rules. Find out what rule they broke
by observing the trading. When the countries have
returned to their desks, you will approach them and
fine them each $5 Million.
G1
ROUND 1
ROUND 1
G2
The product you are trading is green beads to LDC
countries. Green beads are worth $40 Million each.
The product you are trading is green beads to LDC
countries. Green beads are worth $40 Million each.
You will sell 1 green bead to each LDC.
You will sell 1 green bead to each LDC.
The LDCs are selling red beads. You prefer to buy red
beads from LDC 1 and 2 because they were former
colonies of your country. Therefore, you will buy 3 red
beads from each of them and only 1 from the other LDCs.
Use the trade checklist to complete your trading.
The other countries are selling red beads for $15
Million each.
You will buy 2 red beads from each LDC. Use the
trade checklist to complete your trading.
Red beads are worth $15 Million each.
None of this is negotiable. Your country sets the prices and
the amounts traded.
Return to your desk with your trading partner after trading
is completed and fill out your education and health budgets
with the money now available as a result of trading.
Remember, you must have a minimum of $100 Million for
health and education. Take the money spent for health and
education to your local banker who will keep the money
and record it as spent.
None of this is negotiable. Your country sets the prices
and the amounts traded.
Return to your desk with your trading partner after
trading is completed and fill out your education and
health budgets with the money now available as a
result of trading. Remember, you must have a
minimum of $100 Million for health and education.
Take the money spent for health and education to your
local banker who will keep the money and record it as
spent.
67
ROUND 1
G3
LDC 1
ROUND 1
The product you are trading is green beads to LDC
countries. Green beads are worth $40 Million each.
You are trying to sell red beads to G Countries. Red
beads are worth $15 Million each.
You will sell 1green bead to each LDC.
You want to sell 2 red beads to the G Countries.
The other countries are selling red beads for $15
Million each.
The G Countries are selling green beads. You need
green beads to develop your country.
You will buy 2 red beads from each LDC. Use the
trade checklist to complete your trading.
Each green bead costs $40 Million.
None of this is negotiable. Your country sets the prices
and the amounts traded.
You will buy 1 green bead from each G Country.
Use the trade checklist to complete your trading.
Return to your desk with your trading partner after
trading is completed and fill out your education and
health budgets with the money now available as a
result of trading. Remember, you must spend a
minimum of $100 Million for health and education.
Take the money spent for health and education to your
local banker who will keep the money and record it as
spent.
Return to your desk with your trading partner group
after trading is completed and fill out your education
and health budgets with the money now available as
a result of trading. Remember, you must spend a
minimum of $100 Million for health and education.
Take the money spent for health and education to
your local banker who will keep the money and
record it as spent. If you do not have enough
money, you will have to borrow from the WB/IMF.
LDC 2
ROUND 1
LDC 3
ROUND 1
You are trying to sell red beads to G Countries.
Red beads are worth $15 Million each.
You want to sell 2 red beads to the G Countries.
The G Countries are selling green beads. You need
green beads to develop your country.
Each green bead costs $40 Million.
You will buy 1 green bead from each G Country. Use
the trade checklist to complete your trading.
Return to your desk with your trading partner after
trading is completed and fill out your education and
health budgets with the money now available as a
result of trading.
Remember, you must have a
minimum of $100 Million for health and education.
Take the money spent for health and education to your
local banker who will keep the money and record it as
spent. If you do not have enough money, you will
have to borrow from the WB/IMF.
You are trying to sell red beads to G Countries.
Red beads are worth $15 Million each.
You want to sell 2 red beads to the G Countries.
The G Countries are selling green beads. You need
green beads to develop your country.
Each green bead costs $40 Million.
You will buy 1 green bead from each G Country.
Use the trade checklist to complete your trading.
Return to your desk with your trading partner after
trading is completed and fill out your education and
health budgets with the money now available as a
result of trading.
Remember, you must have a
minimum of $100 Million for health and education.
Take the money spent for health and education to
your local banker who will keep the money and
record it as spent. If you do not have enough
money, you will have to borrow from the WB/IMF.
68
LDC 4
ROUND 1
LDC 5
ROUND 1
You are trying to sell red beads to G Countries.
Red beads are worth $15 Million each.
You are trying to sell red beads to G Countries.
Red beads are worth $15 Million each.
You want to sell 2 red beads to the G Countries.
You want to sell 2 red beads to the G Countries.
The G Countries are selling green beads. You need
green beads to develop your country.
The G Countries are selling green beads.
need green beads to develop your country.
Each green bead costs $40 Million.
Each green bead costs $40 Million.
You will buy 1 green bead from each G Country.
Use the trade checklist to complete your trading.
You will buy 1 green bead from each G Country.
Use the trade checklist to complete your trading.
Return to your desk with your trading partner after
trading is completed and fill out your education and
health budgets with the money now available as a
result of trading.
Remember, you must have a
minimum of $100 Million for health and education.
Take the money spent for health and education to
your local banker who will keep the money and
record it as spent. If you do not have enough
money, you will have to borrow from the WB/IMF.
Return to your desk with your trading partner after
trading is completed and fill out your education
and health budgets with the money now available
as a result of trading. Remember, you must have
a minimum of $100 Million for health and
education. Take the money spent for health and
education to your local banker who will keep the
money and record it as spent. If you do not have
enough money, you will have to borrow from the
WB/IMF.
LDC 6
ROUND 1
LDC 7
ROUND 1
You are trying to sell red beads to G Countries.
Red beads are worth $15Million each.
You want to sell 2 red beads to the G Countries.
The G Countries are selling green beads. You need
green beads to develop your country.
Each green bead costs $40 Million.
You will buy 1 green bead from each G Country.
Use the trade checklist to complete your trading.
Return to your desk with your trading partner after
trading is completed and fill out your education and
health budgets with the money now available as a
result of trading.
Remember, you must have a
minimum of $100 Million for health and education.
Take the money spent for health and education
your local banker who will keep the money and
record it as spent. If you do not have enough
money, you will have to borrow from the WB/IMF.
You
You are trying to sell red beads to G Countries.
Red beads are worth $15 Million each.
You want to sell 2 red beads to the G Countries.
The G Countries are selling green beads. You
need green beads to develop your country.
Each green bead costs $40 Million.
You will buy 1 green bead from each G Country.
Use the trade checklist to complete your trading.
Return to your desk with your trading partner after
trading is completed and fill out your education
and health budgets with the money now available
as a result of trading. Remember, you must have
a minimum of $100 Million for health and
education. Take the money spent for health and
education to your local banker who will keep the
money and record it as spent. If you do not have
enough money, you will have to borrow from the
WB/IMF.
69
LDC 8
ROUND 1
You are trying to sell red beads to G Countries.
Red beads are worth $15 Million each.
You want to sell 2 red beads to the G Countries.
The G Countries are selling green beads. You
need green beads to develop your country.
Each green bead costs $40 Million.
You will buy 1green bead from each G Country.
Use the trade checklist to complete your trading.
Return to your desk with your trading partner after
trading is completed and fill out your education
and health budgets with the money now available
as a result of trading. Remember, you must have
a minimum of $100 Million for health and
education. Take the money spent for health and
education to your local banker who will keep the
money and record it as spent. If you do not have
enough money, you will have to borrow from the
WB/IMF.
LDC 9
ROUND 1
You are trying to sell red beads to G Countries.
Red beads are worth $15 Million each.
You want to sell 2 red beads to the G Countries.
The G Countries are selling green beads. You
need green beads to develop your country.
Each green bead costs $40 Million.
You will buy 1 green bead from each G Country.
Use the trade checklist to complete your trading.
Return to your desk with your trading partner after
trading is completed and fill out your education
and health budgets with the money now available
as a result of trading.
Remember, you must
have a minimum of $100 Million for health and
education. Take the money spent for health and
education to your local banker who will keep the
money and record it as spent. If you do not have
enough money, you will have to borrow from the
WB/IMF.
LDC 10
ROUND 1
You are trying to sell red beads to G Countries.
Red beads are worth $15 Million each.
You want to sell 2 red beads to the G Countries.
The G Countries are selling green beads. You
need green beads to develop your country.
Each green bead costs $40 Million.
You will buy 1green bead from each G Country.
Use the trade checklist to complete your trading.
Return to your desk with your trading partner after
trading is completed and fill out your education
and health budgets with the money now available
as a result of trading. Remember, you must have
a minimum of $100 Million for health and
education. Take the money spent for health and
education to your local banker who will keep the
money and record it as spent. If you do not have
enough money, you will have to borrow from the
WB/IMF.
70
SUPPLEMENTARY SHEET 6
TRADE ROUND 2
G1
ROUND 2
Green beads are still worth $40 Million each.
You will sell 1 green bead to each LDC.
The price of red beads has dropped to $10 Million
because of a drop in demand.
You will buy 2 red beads from each LDC.
None of this is negotiable. Your country sets the prices
and the amounts traded.
Return to your desk with your trading partner after
trading is completed and rework the education and
health budgets with the money now available.
Remember, you must have a minimum of $100 Million
for health and education. Take the money spent for
health and education to your local banker who will
keep the money and record it as spent.
G3
ROUND 2
G2
ROUND 2
Green beads are still worth $40 Million each.
You will sell 1 green bead to each LDC.
The price of red beads has dropped to $10 Million
because of a drop in demand.
You will buy 2 red beads from each LDC.
None of this is negotiable. Your country sets the
prices and the amounts traded.
Return to your desk with your trading partner after
trading is completed and rework the education
and health budgets with the money now available.
Remember, you must have a minimum of $100
Million for health and education. Take the money
spent for health and education to your local
banker who will keep the money and record it as
spent.
ALL LDCS
ROUND 2
*
Green beads are still worth $40 Million each.
You will sell 1 green bead to each LDC.
The price of red beads has dropped to $10 Million
because of a drop in demand. You prefer red beads
from LDC 4 and 5 because you have heard that other
LDCs are using oppressive labour standards.
Therefore, you will buy 3 red beads from LDC 4 and 5
and only 1 from other LDCs.
None of this is negotiable. Your country sets the
prices and the amounts traded.
Return to your desk with your trading partner after
trading is completed and rework the education and
health budgets with the money now available.
Remember, you must have a minimum of $100 Million
for health and education. Take the money spent for
health and education to your local banker who will
keep the money and record it as spent.
Photocopy
enough
LDC cards
for each
LDC
You are trying to sell red beads to countries.
You want to sell 2 red beads to the G Countries.
You need to buy 1 green bead from each G
country.
Each green bead costs $10 Million.
Return to your desk with your trading partner after
trading is completed and rework the education
and health budgets with the money now available.
Remember, you must have a minimum of $100
Million for health and education. You will have to
borrow from the WB/IMF if you do not have
enough. Take the money spent for health and
education to your local banker who will keep the
money and record it as spent.
71
WORLD BANK
ROUND 2
You have received an anonymous report from a country
that states that G3 and LDC 4 and 5 are breaking these
rules. Find out what rule they broke by observing the
trading. When the countries have returned to their
tables, you will approach them and fine them each $5
Million.
IMF
ROUND 2
While the LDC Countries are filling out their
budget forms for round 2, visit them and
demand payment on the loan they have taken
out.
The minimum amount they must pay is the
interest on their loan
On $100 Million = $10 Million
On $200 Million = $20 Million
They may borrow either $100 Million or $200
Million each round. If they don’t take any loan,
they will lose all credit worthiness and receive
no more investment from any of the G
Countries. Interest on new loans is 20%.
The condition of the loan is that only half of it
should be spent on Education and Health
Budgets. The rest must be used to pay of their
debt to the IMF/WB.
Keep a record of the loans you make, the
interest charged, the amount paid and the sum
owed.
72
SUPPLEMENTARY SHEET 7
TRADING ROUND 3
G1
ROUND 3
G2
ROUND 3
Green beads are still worth $40 Million each.
Green beads are still worth $40 Million each.
You will sell 1 green bead to each LDC.
You will sell 1 green bead to each LDC.
The price of red beads has dropped to $5 Million because
of a drop in demand.
You will buy 2 red beads from each LDC.
The price of red beads has dropped to $5 Million because of
a drop in demand. Your relationship has deteriorated
substantially with LDC 4 and 5. Furthermore, you have heard
that corruption is rampant in countries 1 and 2.
None of this is negotiable. Your country sets the prices
and the amounts traded.
Therefore, you will buy 3 red beads from LDC 3 and 6 and
only 1 from the other LDCS.
Return to your desk with your trading partner after trading
is completed and rework the education and health budgets
with the money now available. Remember, you must have
a minimum of $100 Million for health and education. Take
the money spent for health and education your local
banker who will keep the money and record it as spent.
None of this is negotiable. Your country sets the prices and
the amounts traded.
G3
ROUND 3
Return to your desk with your trading partner after trading is
completed and rework the education and health budgets with
the money now available. Remember, you must have a
minimum of $100 Million for health and education. Take the
money spent for health and education your local banker who
will keep the money and record it as spent.
ALL LDCS
ROUND 3
*
Photocopy
enough
LDC cards
for each
LDC
Green beads are still worth $40 Million each.
You will sell 1 green beads to each LDC.
You are trying to sell red beads to G Countries.
The price of red beads has dropped to $5 Million because
of a drop in demand.
You want to sell 2 red beads to the G Countries.
You will buy 2 red beads from each LDC.
None of this is negotiable. Your country sets the prices
and the amounts traded.
Return to your desk with your trading partner after trading
is completed and rework the education and health budgets
with the money now available. Remember, you must have
a minimum of $100 Million for health and education. Take
the money spent for health and education to your local
banker who will keep the money and record it as spent.
You need to buy 1 green bead from each G
country.
Each green bead costs $5 Million.
Return to your desk with your trading partner after
trading is completed and rework the education
and health budgets with the money now available.
Remember, you must have a minimum of $100
Million for health and education. You will have to
borrow from the WB/IMF if you do not have
enough. Take the money spent for health and
education to your local banker who will keep the
money and record it as spent.
73
WORLD BANK
IMF
ROUND 3
You have received an anonymous report from a country
that states that G2 and LDC 3 and 6 are breaking these
rules. Find out what rule they broke by observing the
trading. When the countries have returned to their
tables, you will approach them and fine them each $5
Million.
ROUND 3
While the LDC Countries are filling out their
budget forms for round 3, visit them and
demand payment on the loan they have taken
out.
The minimum amount they must pay on their
first loan is the interest on their loan (10%)
On $50 Million = $5 Million
On $100 Million = $10 Million
On $200 Million = $20 Million
The minimum amount they must pay on their
second loan is the interest on their loan (20%)
On $100 Million = $20 Million
On $200 Million = $40 Million
Offer them another loan. They may borrow
either $100 Million or $200 Million each round. If
they don’t take any loan, they will lose all credit
worthiness and receive no more investment
from any of the G Countries.
The condition of the loan is that only onequarter of it should be spent on Education and
Health Budgets. The rest must be invested in
producing more of the country’s main
commodity that can be traded (represented by
the red beads)
74
UNIT 3: THE ALTERNATIVES
Class Time: 75 Minutes
Description
This unit will examine the growing movement of fair trade and ethical consumerism. The
lesson begins with the presentation of student posters on MNCs that were assigned in Unit 1
(See Activity 6: Backstage of a Multi-National Corporation). Your student will go on a corporate
tour of some of the world’s mega corporations. At the end of the tour, have your students
participate in a round of “the Clothes on your Back” (See Activity 7), a popular activity in the NGO
community. The lesson will conclude by taking a closer look at the jeans industry and following
the production of a pair of brand name jeans and a pair of organic jeans from the cotton
plantation to the consumer (See Activity 8).
Curriculum Expectations
Backstage of a Multi-National Corporation (Homework)
Overall Expectations
GCV.01 – demonstrate an understanding of the interdependence of countries in the global
economy.
GCV.02 – analyse instances of international cooperation and conflict and identify factors that
contribute to each.
Specific Expectations
HE2.06 – explain ways in which trade policies or agreements may affect the environment.
GC3.02 – evaluate the performance of a selected transnational corporation with respect to the
promotion of environmental sustainability and human rights.
The Clothes on your Back
Specific Expectation
UC3.01 – identify awareness levels and viewpoints relating to a geographic issue by conducting a
survey in the school or local community.
Cotton to Consumer
Overall Expectation
UCV.03 – evaluate the effectiveness of methods used by different organizations, governments,
and industries to find short- and long-term solutions to geographic problems and issues at the
local, national, and global level.
Specific Expectation
HE2.06 – explain ways in which trade policies or agreements may affect the environment.
GC3.01 – demonstrate an understanding of how quality of life and employment prospects are
related to the global economy.
GC3.04 – evaluate factors that may compound problems of hunger and poverty in a selected
country.
UC1.02 – explain how local participation in the development process can build sustainable
communities.
75
UC2.03 – evaluate the role played by NGOs and local community initiatives in different parts of
the world in promoting sustainable development and resource management.
Prior Knowledge and Skills
•
•
•
Awareness of the fair trade movement.
Some knowledge of sweatshop characteristics.
Group work.
Planning Notes
•
•
•
•
•
•
You will need tape to display your student’s posters on the wall for Activity 6.
Bring enough post-it notes (small size) for each student to have 5 sheets.
Photocopy the Wage Sheet (See Supplementary Sheet 9).
Photocopy 1 set of “Cotton to Consumer” cards for each group (4 people/group) and out each
card. Mix them all up and put an elastic around each set (See Supplementary Sheet 10).
Photocopy the Fair Trade Fact sheet for your students (See Fair Trade Fact sheet).
Review the glossary of terms and be prepared to define any for the class.
Teaching/Learning Strategies
Most of the learning strategies are described in each activity, but here are some of the overall
strategies for the unit.
• Introduce students to the concept of the global economy.
• Examine the historical path of globalisation by identifying the policies and international
commitments and the effects of the implementation of local, national, and global issues.
• Identify individuals who have made a significant contribution to globalisation.
• Introduce the students to new vocabulary and the new concepts listed in each activity. Refer
them to the glossary.
• Refer the students to the accompanying material, the supplementary sheets, and where to go
find information.
• Assign students the suggested homework and encourage students to do an in-depth analysis
of the information provided and to research the websites given.
• Monitor the group work and simulation games so the benefits are maximized for your
students.
Accommodations
Frequent monitoring and assistance should be provided. Accommodations that are normally
provided in the regular classroom for students with special needs should be provided. Here are
some strategies for helping them.
• Information should be presented in as many modalities as possible through oral
presentations, board notes, diagrams, class discussions and activity-based learning.
• Instructions should be clear, concise, to the point, verbally rehearsed by the student, properly
sequenced, reviewed after a time lapse, written down on the board or in a notebook.
• Assignments should be outlined in writing, written in the students’ homework/assignment
book, written (and left) on the blackboard, broken down step by step with the teacher,
rehearsed/modelled, and scheduled step by step.
• Questioning should be clear and concise, allowing for appropriate response time. Students
need to organise their thoughts, match them with appropriate vocabulary, put them in correct
syntax, sequence the ideas and finally express them with good speech. These skills are often
taken for granted when teaching new concepts.
• Encourage students to question for clarification and additional information. Learn to speak
clearly and slowly. Avoid figurative language unless it has been specifically pre-taught.
Encourage and evaluate oral responses and class participation. Allow extra time (e.g.
homework) for students to complete assignments that other students may finish in class time.
76
Create extra practice opportunities wit new vocabulary or concepts. Provide overviews or
lesson highlights at the beginning of class. Discuss and simplify sophisticated vocabulary or
language. Finally, give several short assignments rather than one long one.
77
Assessment and Evaluation of Student Achievement
Lesson Plans
Unit 3
Backstage of a MNC
Categories
Knowledge /
Understanding
Formative
and Summative
Thinking / Inquiry
Formative
and Summative
Communication
Formative
and Summative
Application / Making
Connections
Formative
and Summative
The Clothes on your Back
Knowledge /
Understanding
Formative
Thinking / Inquiry
Formative
Communication
Formative
Performance
Assessment
Personal
Communications
-Evaluate the performance
of selected global
corporations in terms of
human rights and
environmental standards.
-Distribute the rubric
.(Poster and presentation
Rubric for homework 1,
Unit 3 , Activity 6 )
-Allows for evaluation of
depth of understanding of
the performance of
selected global
corporations in terms of
human rights and
environmental standards.
-Analyse instances of
international cooperation
and conflict.
-Allows for evaluation of
complex critical/creative
and inquiry skills on the
world decision makers.
-Discussions
-Presentation of their
poster later in Unit 3.
(See Poster and
presentation Rubric)
-Summary of their findings
to be presented in Unit 3.
-Discuss how MNCs are
impacted by trade policies.
-Allows for communication
in all forms – written, oral,
and visual.
-Allows for expression of
thoughts and
communicating ideas.
-Evaluate the performance
of a selected transnational
corporation with respect
to the promotion of
environmental
sustainability and human
rights.
-Allows for knowledge on
the influence of various
global corporations in the
global economy to be
presented.
-Allows for knowledge on
sustainable development
to be presented in a
sequential order and to be
applied to new situation /
problem.
-Evaluate the role the
students play in the global
economy.
-Research on the working
conditions in the clothing
factories.
-Allows for evaluation of
depth of understanding of
the performance of
selected global
corporations in terms of
human rights and
environmental standards.
-Analyse wage versus cost
of production.
-Analyse employee’s
conditions in the factories.
-Allows for evaluation of
complex critical/creative
and inquiry skills on global
corporations
-Discussions and
debriefing on the working
conditions in the factories
where their clothing was
produced.
-Allows for communication
in all forms – written, oral,
and visual.
-Allows for expression of
thoughts and
communicating ideas.
78
Application / Making
Connections
-Present your findings on
global corporations.
-Allows for knowledge on
global economy to be
presented and how they
play a role in the global
economy and what actions
could they take.
-Human organizer
-In-class questions and
answers
-In-class group discussions
to determine how quality of
life is affected by the
global economy.
-Open-ended questions
-Allows for assessing basic
creative thinking skills.
-Allows for more in-depth
questioning; encourages
students to explain their
reasoning.
-Discussions
-Allows for expression of
thoughts and
communicating ideas
verbally on the impact of
community participation in
globalisation.
-Determine the sequence
of events in the
production of corporate
jeans and organic jeans.
-Method to get ‘authentic’
and simulated real world
performance.
Formative
Cotton to Consumer
Knowledge /
Understanding
Formative
Thinking / Inquiry
Formative
Communication
Formative
Application / Making
Connections
Formative
79
Resources
1. New Internationalist. 1998. “Jeans: The Big Stitch Up.” Vol. 302.
2. Clark, Tony and Sarah Dopp. 2001. Challenging McWorld. Canadian Centre for Policy
Alternatives.
3. Ranson, David. 2000. No-Nonsense Guide to Fair Trade. New Internationalist.
80
ACTIVITY 6
LEVELS:
Grade 12, University Preparation
COURSES AND EXPECTATIONS:
Canada and World Issues
HE2.06, GCV.01, GCV.02, GC3.02
TASK:
Your students will present their
findings on global corporations.
EXPECTATIONS:
The student will:
• Evaluate the performance of
selected global corporations in
terms of human rights and
environmental standards
•
Discuss how MNCs are
impacted by trade policies
•
Determine the impact of
national policies and
international agreements on
corporations
TIMEFRAME:
30 Minutes
ACHIEVEMENT CATEGORIES:
Knowledge / Understanding
Thinking / Inquiry
Communication
Application / Making Connections
MATERIALS:
Tape
VOCABULARY:
Multi-National Corporations
Trade agreements
Corporate ethics
81
Procedure
1. Prior to Unit 1, your students were given the following group assignment:
Develop a profile of the corporation you have selected. Your profile must include the following:
• The corporations logo
• Mandate
• Location of headquarters
• Countries where the corporation’s products are produced
• Information on the use of child and sweatshop labour in the factories used by the
corporation.
• CEO
• Date of establishment
• Recent mergers
• Type of products
• Brand names owned by the corporation
• Target audience
• Your group’s analysis of the corporations track record environmental, social,
economic and labour issues.
• Any other information that would be useful for your classmates to know
Present your findings on a poster. The poster should contain the following information:
•
•
•
•
A summary of the corporation you have chosen.
An interactive aspect that engages the other students in your class (For example, a
quiz on various components of your assigned sustainable development event)
Creativity! Your poster will be displayed in the class as part of a sustainable
development timeline. You need to encourage other students in your class to read
your poster.
Your group will give a five minute summary of your findings to the class.
2. The groups were asked to prepare a 5-minute summary of their findings and design an
informative poster.
3. Have the groups present their findings in a five-minute presentation. Following the
presentations, have the groups display their posters around the classroom.
4. Your students can walk around the classroom reading the summaries provided by the
groups.
82
ACTIVITY 7
LEVELS:
Grade 12, University Preparation
COURSES AND EXPECTATIONS:
Canada and World Issues
UC3.01
TASK:
Your students will learn about the
working conditions in the factories
where their clothing is produced.
EXPECTATIONS:
The student will:
• Evaluate the role your students
play in the global economy.
TIMEFRAME:
5 Minutes
ACHIEVEMENT CATEGORIES:
Knowledge / Understanding
Thinking / Inquiry
Communication
Application / Making Connections
MATERIALS:
World map, post-it notes
VOCABULARY:
Sweatshops
83
Procedure
1. In partners, ask your students to check the label on an article of clothing of their partner
to see where it came from.
2. Have your students write the countries where their clothing was made on a post-it note (1
post-it note per item).
3. When everyone is finished, have the partners place their post-it notes over the country on
the map where their clothing was produced.
4. Ask your students to comment on the mapping of their clothing (i.e. where production is
concentrated).
5. Ask your students to discuss the working conditions in the factories where their clothing
was produced (refer to the background section of this module for information on the
garment industry).
6. Refer to the Maquila Solidarity Network’s wage card (Supplementary Sheet 9) to examine
how much the worker earns to produce the clothes sold in retail stores across North
America. How do the workers’ wages compare with the cost of the garment that we pay
for in the stores?
84
SUPPLEMENTARY SHEET 8
Wage Card
Hourly base or starting wage in the apparel industry (U.S. dollars).
USA
Canada
Philippines
El Salvador
Mexico
Honduras
China
Nicaragua
Indonesia
India
Bangladesh
$8.42
$6.70
$0.62
$0.60
$0.54
$0.43
$0.30
$0.25
$0.22
$0.20
$0.17
Source: Wages, Benefits, Poverty Line and meeting Workers need in the Apparel
and Footwear Industries of Selected Countries, U.S. Dept. of Labour, Feb. 2000
85
ACTIVITY 8
LEVELS:
Grade 12, University Preparation
COURSES AND
EXPECTATIONS:
Canada and World Issues
HE2.06, GC3.01, GC3.04,
UCV.03, UC1.02, UC2.03
TASK:
In groups of 4, students determine
the sequence of events in the
production of corporate jeans and
organic jeans.
EXPECTATIONS:
The student will:
• Analyse how quality of life is
affected by the global
economy
• Discuss the impact of
community participation in
globalisation
• Evaluate how the global
economy can affect levels of
poverty.
TIMEFRAME:
30 Minutes
ACHIEVEMENT CATEGORIES:
Knowledge / Understanding
Thinking / Inquiry
Communication
Application / Making Connections
MATERIALS:
Sequence cards
VOCABULARY:
Fair trade
Sweatshops
Apparel Industry
86
Procedure
1. Photocopy supplementary sheet 10 (1 per group of 4) and cut out the squares. Jumble the
cards together.
2. Divide your class into groups of 4.
3. Distribute the package of cards to each group.
4. Explain to your students that the cards tell the story of a pair of brand name and organic
jeans.
5. In their groups, your students must sort out the two stories.
DISCUSSION
Knowledge / Understanding
•
What is the most significant difference between the two stories?
Thinking / Inquiry
• Did anything concern you about the jeans industry?
• What would you want to know about a jeans company before purchasing from
them?
• Do you know of any other clothing companies that have a bad reputation for
human rights violations and poor environmental standards?
Application / Making Connections
• What influences your choice in jeans?
• Discuss how organic jeans could be marketed so that they become a competitive
industry.
• How can you be involved in ensuring that your clothing is made without
sweatshop labour and environmental damage?
87
SUPPLEMENTARY SHEET 9
COTTON TO CONSUMER
Corporate Jeans
Industrial cotton is grown on 5% of the world’s cultivable land. The production of cotton requires
substantial inputs. Cotton crops depend on irrigation and pesticides.
Cotton is grown primarily in the US, India, China, Pakistan and Uzbekistan.
A million cotton producers are killed every year from inhaling the toxic pesticides on cotton
plantations.
The production of denim requires large quantities of cotton. Usually, denim mills are located near
cotton crops. Denim mills are located primarily in the US with some production in China, the
European Union, Brazil and Hong Kong.
Denim uses thousands of tons of synthetic indigo, a major pollutant, to dye denims the shade of blue
used in jeans.
Jeans production cannot be automated due to the intricate stitching involved and therefore the jeans
industry employs hundreds upon thousands of typically young women to sew millions of pairs of
jeans.
Jean’s factories are notorious for employing under low wage conditions, in countries such as
Guatemala, Bangladesh, or the Philippines, or in immigrant areas of Los Angeles, New York,
Toronto, and Sydney.
In 1996, Bangladesh imported 48 Million metres of denim and Turkey imported 85 million metres of
denim for the production of jeans.
A small number of large retail chains dominate the textiles industry. These retail giants keep just over
half of the final price of jeans. Meanwhile, the hundreds upon thousands of labourers in jeans
factories receive 12% of the final retail price.
San Francisco-based Levi Strauss, the first producer of jeans, is now the world’s largest clothing
manufacturer. Annual sales are worth $7 billion of which 71% are from the sale of jeans and jeanrelated items.
88
Organic Jeans
500 farmers in the village of Koussanar, Senegal grow organic cotton with the help of a local NonGovernmental Organisation.
Cow urine, which contains iron, potassium and magnesium, is used to fertilise the cotton fields. It is
also considered to be one of the best insecticides and herbicides for cotton.
It has been found that organic cotton farmers in Senegal have a yield of up to 1.8 tonnes per hectare –
almost double the national average.
The price of organic cotton is 30 percent higher than that of conventional cotton.
Textile companies in the North, especially in Europe, are the main processors of organic cotton.
The approaches taken in many organic cotton projects are intended to create a more equitable
distribution of benefits, including better returns at the farmer level.
Cotton can grow naturally in most shades of brown and green, eliminating the need for dying
altogether.
It is estimated that an organic and sweat-free pair of jeans would cost the consumer $300. Market
research suggests that the consumer is unwilling to pay this price for jeans.
Jeans are produced in factories where unions have been established, allowing employees the right to
demand labour rights such as a fair wage and a safe working environment.
The consumer buys jeans made from organic cotton, typically produced under better practices than
when conventional cotton is used.
89
UNIT 4: THE GLOBAL ECONOMY
Class Time: 75 Minutes
Description
This lesson will emphasize the use of Geomatic data to study several aspects of the global
economy, gross domestic product, income disparity, poverty, external debt, and foreign
investment.
• Explore the world economy in relation to GDP, poverty, debt, investment and income equity.
• Prepare maps showing GDP, poverty, debt, investment and income equity.
• Analyze world poverty and external debt.
• Use and query data tables linked and associated with maps.
• Compute and use new data tables.
• Display computed data using charts.
• Prepare a map layout for printing.
Curriculum Expectations
Global Economy
Overall Expectations
SSV.02 – analyse the causes and effects of economic disparities around the world.
GCV.01 – demonstrate an understanding of the interdependence of countries in the global
economy.
GIV.01 – select and apply geographic skills, methods, and technologies to gather, analyse, and
synthesize ideas and information.
GIV.02 – use a variety of methods and technologies to communicate the results of geographic
inquiry and analysis effectively.
GIV.03 – select and apply appropriate decision-making and problem-solving strategies to develop
solutions for geographic problems and issues.
GIV.04 – conduct an independent inquiry that effectively applies geographic knowledge, skills,
methods, and technologies to a selected local, national, or global geographic issue.
Specific Expectations
SS1.04 – identify different methods of grouping countries (e.g., by level of development,
economic affiliation) and evaluate the implications of categorizing countries in these ways.
SS1.05 – identify ways in which countries and regions of the world are becoming increasingly
interdependent.
SS3.02 – select and compare statistical indicators of quality of life for a variety of developed and
developing countries in different parts of the world.
GC3.04 – evaluate factors that may compound problems of hunger and poverty in a selected
country.
GI1.02 – demonstrate an understanding of the technologies used in the analysis and synthesis of
geographic data (e.g., remote sensing, information technology, geographic information system,
hypermedia).
90
GI2.02 – analyse cause and effect and sequence relationships in geographical data.
GI2.06 – draw conclusions or make judgements or prediction on the basis of reasoned analysis.
GI2.07 – produce mental, thematic, and choropleth maps to illustrate local or global patterns.
GI2.08 – use statistical analysis techniques to interpret and analyse data.
GI2.10 – Use written, oral, and visual communication skills to present the results of geographic
inquiry and analysis effectively.
Prior Knowledge and Skills
•
•
•
Basic knowledge of the ArcView Software (See Power Point Presentation ‘The Basic of
ArcView’).
Awareness of the concepts of international trade and of the global economy (e.g. GDP or
gross domestic product, export, import, income disparity, poverty, external debt, and foreign
investment).
Statistical Analysis, Geographical Information System (GIS).
Planning Notes
•
•
•
You will need a computer system with ArcView GIS software to carry out this unit.
Download the data from the website http://www.ocdsb.edu.on.ca/woodsweb/Geomatics
before doing the lesson.
Photocopy of Worksheet 10 Global Economy.
Teaching/Learning Strategies
Most of the learning strategies are discussed in each activity, but here are some of the overall
strategies for the unit.
• Students should do the “Global Economy” lesson with a partner.
• Introduce Arcview to the students with Power Point Presentation “The Basics of Arcview”.
• Make a printout of Worksheet 10: Global Economy and distribute it to every group.
• Introduce the students to the new vocabulary and the new concepts listed in the activity.
Refer them to the glossary.
• Explain to the students that they will have to produce a Global Economy World Map, note that
their map will be evaluated using the Cartographic Skills and rubric.
• Students will research background information on the global economy.
• Students will download data sets needed for GIS analysis of the global economy (GDP,
foreign investment, poverty, income equity, development assistance).
• Students will follow the defined GIS exercise to develop products that provide insight into the
current and changing global economy.
• Students will use the GIS output products to answer questions that are imbedded into the
exercise.
• Assign students the suggested homework and encourage students to take a more in-dept
analysis of the information provided and to research the websites given for this unit.
Accommodations
Frequent monitoring and assistance should be provided. Accommodations that are normally
provided in the regular classroom for students with special needs should be provided. Here are
some strategies for helping them.
• Information should be presented in as many modalities as possible through oral
presentations, board notes, diagrams, class discussions and activity-based learning.
91
•
•
•
•
•
Instructions should be clear, concise, to the point, verbally rehearsed by the student, properly
sequenced, reviewed after a time lapse, written down on the board or in a notebook.
Assignments should be outlined in writing, written in the students’ homework/assignment
book, written (and left) on the blackboard, broken down step by step with the teacher,
rehearsed/modelled, and scheduled step by step.
Questioning should be clear and concise, allow appropriate response time. Students need to
organise their thoughts, match them with appropriate vocabulary, put them in correct syntax,
sequence the ideas and finally express them with good speech. These skills are often taken
for granted when teaching new concepts.
Encourage students to question for clarification and additional information. Learn to speak
clearly and slowly. Avoid figurative language unless it has been specifically pre-taught.
Encourage and evaluate oral responses and class participation. Allow extra time (e.g.
homework) for students to complete assignments that other students may finish in class time.
Create extra practice opportunities wit new vocabulary or concepts. Provide overviews or
lesson highlights at the beginning of class. Discuss and simplify sophisticated vocabulary or
language. Finally, give several short assignments rather than one long one.
Provide photocopies of the GIS lesson and the Background Information for students with
special needs instead of referring them to the on-line version.
92
ASSESSMENT AND EVALUATION OF STUDENT ACHIEVEMENT
Lesson Plans
Categories
Methods
Unit 4
Discussion: Global Economy
using the Background
Information on Global
Economy
Knowledge /
Understanding
-Demonstrate an
understanding of the
interdependence of
countries in the global
economy.
-Discussions
-In-class questions and
answers
-Open-ended questions
-Analyse the causes and
effects of economic
disparities around the world.
-Discussions
-In-class questions and
answers
-Open-ended questions
-Draw conclusions or make
judgments on the basis of
reasoned analysis.
-Computer skills
-Knowledge ArcView GIS
-Questions and answers with
a partner
-Demonstrate and
understanding of the
technologies used in the
analysis and synthesis of
geographic data.
Thinking / Inquiry
Formative
and Summative
-Questions and answers with
a partner
-Analyse cause and effect
and sequence relationships
in geographical data.
Communication
-Cartographic Skills Rubric to
produce a map
-Evaluate using the
Cartographic Skills Rubric
-Map production and layout.
Application/ Making
Connections
Formative
and Summative
-Evaluate final map product
using Cartographic Skills
Rubric
-Produce mental, thematic,
and choropleth maps to
illustrate local or global
patterns.
Knowledge /
Understanding
-Computer skills
-Knowledge of ArcView GIS
-Evaluate using the GIS
Homework (research paper
on Global Economy)
-Analyse cause and effects
and sequence relationships
in geographical data.
-Conduct an independent
inquiry that effectively
applies geographic
knowledge, skills, methods,
and technologies to a
selected local, national, or
global geographic issue.
-Define a GIS project with
other sets Global economy
data.
-Define the implications for
the Global Economy
-Evaluate using the GIS
Homework (research paper
on Global Economy)
-Evaluate factors that may
compound problems of
hunger and poverty in a
selected country.
-Select and compare statistical indicators of quality of
life for a variety of developed
and developing countries in
different parts of the world.
Formative
Formative
Application / Making
Connections
Formative
Knowledge /
Understanding
Formative and
Summative
Formative
and Summative
GIS Homework (Research
paper on Global Economy)
Personal
Communications
-Discussions
-In-class questions and
answers
-Open-ended questions
Thinking / Inquiry
GIS Lesson: Global
Economy
Performance
Assessment
Summative
Thinking / Inquiry
Summative
93
Communication
Summative
Application / Making
Connections
Summative
-Draw conclusions or make
judgments or predictions on
the basis of reasoned
analysis
-Evaluate using the GIS
Homework (research paper
on Global Economy)
-Allows for expression of
thoughts and communicating
ideas.
-Allows for clarity of thoughts
and expressions in written
form.
-Produce research paper,
maps and graphs to analyse
on new aspect of Global
Economy.
-Evaluate using the GIS
Homework (research paper
on Global Economy)
-Engage students in real
world tasks. (i.e., relevant
and authentic)
94
RUBRIC EVALUATION OF STUDENT ACHIEVEMENT
CARTOGRAPHY SKILLS
The Task
Students are expected to develop skills in the art of cartography as they explore Global Economy
sets of data. The opportunity to demonstrate cartographic skills can be assessed for this lesson.
Expectations
This task gives students the opportunity to demonstrate achievement of the following expectation
from one strand: Methods of Geographic Inquiry.
Students will:
GI2.07 – produce mental, thematic, and choropleth maps to illustrate local or global patterns.
Prior Knowledge and Skills
To complete this task, students are expected to be able to demonstrate the following:
•
•
•
•
•
•
select and use appropriate methods for displaying geographic data;
use different types of maps (e.g., road, topographic, thematic) effectively to interpret
geographic relationships;
ability to read, analyse, and interpret graphs and maps
demonstrate a knowledge of technologies used in geographic inquiry (e.g., Geographic
Information Systems (GIS), hypermedia);
demonstrate an understanding of the methods used to collect, organize, manipulate, and
interpret geographic data.
use statistical methods (e.g., average, median, correlation) effectively when analyzing
geographic information.
95
Task Rubric – Cartographic Skills
Expectations
Criteria
KNOWLEDGE / UNDERSTANDING
• Title
GI2.07
Level 1 (50 – 59)
Level 2 (60 - 69)
Level 3 (70 – 79)
Level 4 (80 -100)
•
Fails to identify area
shown
•
Identifies area shown
•
Identifies area shown, topic and
purpose, or focus
•
Identifies area shown, topic
and purpose, or focus is
separated with border
•
Offers little
explanation of the
meaning of symbols
and colours
•
Offers some explanation
of the meaning of
symbols and colours
•
Offers considerable explanation
of the meaning of symbols and
colours
•
Offers a high degree of
explanation of the meaning
of symbols and colours
Date / projection
Direction:
Represented in
two ways.
1) By direction
arrow or symbol
2) By the use of
latitude and longitude
•
Date / projection is
not included
Direction is not
included
•
Date is included but not
projection (or vice versa)
Direction is indicated with
arrow
•
•
Date / projection is included
Direction is indicated with
arrow and latitude / longitude
lines
•
Date / projection is included
within legend box
Direction is indicated with
arrow and latitude / longitude
lines are labelled
•
•
•
Fails to allow reader
to calculate distance
and area
Little use of borders
•
Allows reader to calculate
distance and area
Some use of borders
•
Allows reader to calculate
distance and area / shown in
appropriate units
Appropriate use of borders
•
THINKING / INQUIRY
GI2.07
•
Legend
COMMUNICATION
GI2.07
•
•
•
•
•
APPLICATION
GI2.07
Scale
Borders
•
•
•
•
Allows reader to calculate
distance and area / shown in
appropriate units / style
The use of borders sets the
map apart from other
information
96
Rubric Evaluation of Student Achievement
Task Rubric – GIS Homework (Research paper on global economy)
Expectations
Criteria
Level 1 (50 – 59)
Level 2 (60 - 69)
Level 3 (70 – 79)
Level 4 (80 -100)
Knowledge / understanding
ƒ
GCV.01
SS1.04
ƒ
Demonstrate an understanding of
the interdependence of countries
in the global economy.
Identify different methods of
grouping countries and evaluate
the implications of categorizing
countries in these ways.
ƒ
ƒ
Shows some understand-ding
of the interdependence of
countries in the global
economy.
Shows some methods of
grouping countries and
evaluating the implications.
ƒ
Some independent inquiry
that effectively applies
geographic knowledge,
skills, methods, and
technologies to a selected
issue.
Some analysis of the causes
and effects of sequence
relationships in geographical
data.
ƒ
ƒ
Shows some understand-ding
of the technologies used in
the analysis and synthesis of
geographic data.
ƒ
Some communication of
Shows limited understanding
of the interdependence of
countries in the global
economy.
Shows limited methods of
grouping countries and
evaluating the implications.
ƒ
Limited independent inquiry
that effectively applies
geographic knowledge,
skills, methods, and
technologies to a selected
issue.
Limited analysis of the
causes and effects of
sequence relationships in
geographical data.
ƒ
Shows limited understanding
of the technologies used in
the analysis and synthesis of
geographic data.
Limited communication of
the results of geographic
inquiry and analysis.
ƒ
Shows considerable
understanding of the
interdependence of countries in
the global economy.
Show considerable methods
of grouping countries and
evaluating the implications.
ƒ
Considerable independent
inquiry that effectively applies
geographic knowledge, skills,
methods, and technologies to a
selected issue.
Considerable analysis of the
causes and effects of sequence
relationships in geographical
data.
ƒ
ƒ
Shows considerable
understanding of the
technologies used in the
analysis and synthesis of
geographic data.
ƒ
Shows thorough
understanding of the
technologies used in the
analysis and synthesis of
geographic data.
ƒ
Considerable
communication of the results
ƒ
Thorough communication
of the results of geographic
ƒ
ƒ
Shows thorough
understanding of the
interdependence of countries
in the global economy.
Show thorough methods of
grouping countries and
evaluating the implications.
Thinking / Inquiry
ƒ
GIV.04
GI2.02
ƒ
Conduct an independent inquiry
that effectively applies
geographic knowledge, skills,
methods, and technologies to a
selected issue.
Analyse the causes and effects of
sequence relationships in
geographical data.
ƒ
ƒ
ƒ
ƒ
ƒ
Thorough independent inquiry
that effectively applies
geographic knowledge, skills,
methods, and technologies to a
selected issue.
Thorough analysis of the
causes and effects of sequence
relationships in geographical
data.
Communication
ƒ
GI1.02
GI2.10
ƒ
Demonstrate an understanding of
the technologies used in the
analysis and synthesis of
geographic data.
Communicate the results of
geographic inquiry and analysis
effectively.
ƒ
ƒ
the results of geographic
inquiry and analysis.
of geographic inquiry and
analysis.
inquiry and analysis.
Application
ƒ
GI2.06
Draw conclusions or make
judgments or prediction on the
basis of reasoned analysis.
ƒ
Draw limited conclusions or
make limited judgments or
predictions on the basis of
reasoned analysis.
ƒ
Draw some conclusions or
make some judgments or
prediction on the basis of
reasoned analysis.
ƒ
Draw considerable conclusions
or make considerable
judgments or prediction on the
basis of reasoned analysis.
ƒ
Draw thorough conclusions or
make thorough judgments or
predictions on the basis of
reasoned analysis.
97
Resources
The International Monetary Fund
http://www.imf.org/
The Organization for Economic Co-operation and Development
http://www.oecd.org/EN/home/0,,EN-home-0-nodirectorate-no-no-no-0,FF.html
The World Bank
http://www.worldbank.org/data/
The United Nations Development Program
http://www.undp.org/
The Institute of International Finances, Inc
http://www.iif.com/ipi/multilateral.quagga
The African Development bank
http://www.afdb.org/
The Asian Development Bank
http://www.adb.org/
European Investment Bank
http://www.eib.org/
The Inter-American Investment Corporation
http://www.iadb.org/iic/english/index.htm
The International Finance Corporation
http://www.ifc.org/
The Canadian International Development Agency
http://www.acdi-cida.gc.ca/index-e.htm
Export Development Canada
http://www.edc.ca/index_e.htm
Statistics Canada
http://www.statcan.ca/english/Pgdb/intern.htm
98
Activity 9
LEVELS:
Grades 9 to 12
COURSES AND EXPECTATIONS:
Canada and World Issues
SSV.02, GCV.01, GIV.01, GIV.02,
GIV.03, GIV.04, SS1.04, SS1.05,
SS3.02, GC3.4, GI1.02, GI2.02,
GI2.06, GI2.07, GI2.08, GI2.10
TASK:
Through GIS processes, students
investigate the current and changing
nature of the global economy.
EXPECTATIONS:
The student will:
• Explore the world economy in
relation to GDP, poverty, debt,
investment and income equity.
• Prepare maps showing GDP,
poverty, debt, investment and
income equity.
• Analyze world poverty and
external debt.
• Use and query data tables linked
and associated with maps.
• Compute and use new data tables.
• Display computed data using
charts.
• Prepare a map layout for printing.
TIMEFRAME:
90 Minutes
ACHIEVEMENT CATEGORIES:
Knowledge / Understanding
Thinking / Inquiry
Communication
Application / Making Connections
MATERIALS:
Computer system with ArcView GIS
software
VOCABULARY:
GDP
Foreign investment
Poverty
GINI index
Development assistance
99
PROCEDURE:
1. Students will research background information on global economy.
2. Students will download data sets needed for GIS analysis of the global economy. (GDP,
foreign investment, poverty, income equity, development assistance) The data can be found
on the website http://www.ocdsb.edu.on.ca/woodsweb/Geomatics and downloaded before
doing the lesson.
3. Students will follow the defined GIS exercise to develop products that provide insight into the
current and changing global economy.
4. Students will use the GIS output products to answer questions that are imbedded into the
exercise.
DISCUSSION
Knowledge / Understanding
1. What is the global economy? Compare economic variables in several different
countries (developed, developing, undeveloped).
2. How can countries move towards a sustainable economy?
3. Which countries show positive change and which countries show negative
change? Why?
Application / Making Connections
4. Where do we see a sustainable economy in the real world?
Thinking / Inquiry
Start a discussion of the following:
5. What do we need to know in order to measure the global economy?
6. What is needed to improve the global economy (e.g. leadership,
communication, trust, legislation, technology, trade, understanding of
consequences, examples of failure, etc)
7. How does GIS analysis help to understand the complexity of the global
economy?
HOMEWORK SUGGESTION:
Research paper:
1. Select an additional aspect of the economy. (E.g. Corporations, exports / imports,
spending profiles, etc.)
2. Research the selected topic for 10 different countries to support a background paper
and a GIS project.
3. Find, select and acquire data for the 10 countries to be used in the GIS project. Add the
data to the gdp_pc.dbf for GIS products.
(http://earthtrends.wri.org/searchable_db/index.cfm?theme=10)
4. Produce GIS products (maps, charts or tables) to support the background paper.
5. Define the implications for the global economy in the 10 countries.
100
BACKGROUND ON THE GLOBAL ECONOMY
The global economy is a complex and constantly changing web of many variables such as trade,
income, investment, aid, GDP etc. A change in any of these variables in one part of the world will
result in changes in other variables throughout the world. The study of the global economy
involves many complex concepts but much can be understood through mapping some of the
more common variables. The following definitions describe some of the economic variables that
we will explore through GIS mapping. An understanding of these variables will help to carry out
the GIS exercises. Further research of these terms may help to provide students with a more
complete understanding.
Gross Domestic Product (GDP)
GDP is one measure of economic activity, the total amount of goods and services produced in a
country in a year. It is calculated by adding together the market values of all of the final goods
and services produced in a year.
* It is a gross measurement because it includes the total amount of goods and services
produced, some of which are simply replacing goods that have depreciated or have worn out.
* It is domestic production because it includes only goods and services produced within the
country such as energy, food etc.
* It measures current production because it includes only what was produced during the year.
* It is a measurement of the final goods produced because it does not include the value of a good
when sold by a producer, again when sold by the distributor, and once more when sold by the
retailer to the final customer. We count only the final sale.
Changes in GDP from one year to the next reflect changes in the output of goods and services
and changes in their prices. To provide a better understanding of what is actually occurring in the
economy, real GDP is also calculated. In fact, these changes are more meaningful, as the
changes in real GDP show what has actually happened to the quantities of goods and services,
independent of changes in prices.
101
World GDP per capita
5800
5600
Constant 1995 US$
5400
5200
5000
4800
4600
4400
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
4200
YEAR
Data Source: Development Data Group, The World Bank. 2002. Through World Resources
Institute.
EXTERNAL DEBT
Data on external debt is widely recognized as among the most
challenging sets of data to collect and use. This is apparent even from the definition of external
debt. The so-called core definition agreed to by the international organizations that collect debt
data is as follows:
Gross external debt is the amount, at any given time, of disbursed and outstanding contractual
liabilities of residents of a country to non-residents to repay principal, with or without interest, or to
pay interest, with or without principal.
This wording was carefully chosen. For example, the term Gross external debt makes explicit the
exclusion of any corresponding offsetting assets or claims. The term contractual liabilities is
intended to cover a broad range of obligations, but to exclude equity participations, which do not
involve a requirement to make principal or interest payments. However, it was recognized by the
International Monetary Fund that new interpretations might be needed, given the pace of
innovations in financial markets, and currently there is a question whether financial derivative
instruments are covered.
102
TOTAL EXTERNAL DEBT (examples)
300000
M illion current US$
250000
200000
Chile
Venezuela
150000
Argentina
Brazil
100000
50000
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
0
YEAR
Data Source: World Resources Institute
The graph shows Argentina and Brazil with increasing debt overtime and therefore increased
financial difficulty as more and more of the GDP is needed to pay the external debt.
Direct foreign investment
Financial assets and liabilities that are associated with direct foreign investment - both outward
and inward - are to be recorded under the appropriate financial assets listed in the classification,
i.e., shares and other equity (including reinvested earnings), loans, and other accounts receivable
and payable. These direct investment-related entries also are to be recorded separately as a
memorandum item.
The net financial claims of an economy on the rest of the world, i.e., external financial assets less
financial liabilities, often are the basis for characterizing an economy as a "net creditor" or "net
debtor". Such a label is not accurate as a depiction of the net external position of the
economy. Rather, it is more relevant to view only the non-equity components of the external
balance sheet as debt, i.e., all recorded liabilities other than shares and other equity. This view is
in general concordance with the "core" definition of external debt in “External Debt: Definition,
Statistical Coverage, and Methodology (1988)”, a joint study by the IMF, World Bank, OECD, and
the Bank for International Settlements.
103
WORLD FOREIGN DIRECT INVESTMENT
1400000
M illion current US $
1200000
1000000
800000
600000
400000
200000
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
0
YEAR
Data Source: World Resources Institute
DEVELOPMENT ASSISTANCE:
Development Assistance is aimed at promoting economic and social growth through smallholder
assistance, enterprises, and human development through loans, technical, and monetary aid.
Development Assistance is usually characterized by the following categories: population and
family planning, agriculture and food security, education, public health, democracy promotion and
elections, economic development, and emergency assistance. Development Assistance faces
many challenges and can take many new directions in the twenty-first century. Donor nations, like
the U.S., must find a way to make Development Assistance promote sustainability without
creating dependency and dictating the course of development.
The idea of Development Assistance came out of the post-World War Two Marshall Plan to
reconstruct Europe. It was seen as a way to shift from extreme militarization to social and
economic development through monetary and technical assistance. For Africa, Development
Assistance came out of the end of Western colonial rule and the beginning of the Cold War. Many
African States aligned with the U.S. or the Soviet Union as proxies and competed for large
104
portions of economic and military assistance. In 1961 Kennedy signed the Foreign Assistance Act
that created USAID, an independent government bureaucracy that oversees Development
Assistance projects. Development Assistance has gone through three phases in its history.
Phase I (1960's through the early 1970's) was mostly bi-lateral assistance from former colonial
powers (Britain, France, and Belgium), as well as Canada, the U.S., Norway, and the Soviet
Union (Bandow and Vasques 128). Phase II (1970 to 1989) saw the rise of multi-lateral
institutions. Multilateral development institutions became important donors of development
assistance. These include: the IMF and World Bank, the European Development Bank, OPEC,
the International Fund for Agriculture Development, the UN Development Programme, the Arab
Bank for Economic Development in Africa, the African Development Bank, and the
Commonwealth Development Corporation. In this era assistance for multi-lateral development
banks grew from 13% to 34% by the end of 1987. Phase III (the post-Cold War era) has seen a
decline in Development Assistance budgets. With Africa no longer serving a geopolitical interest
in the battle with the U.S. and Soviet Union, Sub-Saharan Africa saw the slashing of budgets and
a decline in relations with foreign powers. This marks a particularly important turning point to
donor relations. It is a unique opportunity to discuss the need for the expansion or even the
necessity to continue development assistance.
WORLD OFFICIAL DEVELOPMENT
ASSISTANCE
80000
Million current US$
70000
60000
50000
40000
30000
20000
10000
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
0
YEAR
Data Source: World Resources Institute
105
Global Economy
Arc View Lesson
106
GIS Information
Here's a list and explanation of important features in ArcView:
Project : In ArcView, a file for organizing your work. Projects use five types of
documents to organize information: views, tables, charts, layouts, and scripts.
View
: A component of an ArcView project used for displaying, querying, and
analyzing geographic themes.
Table of Contents: All themes in a View are listed to the left of the map. The Table of
Contents shows the symbols used to draw features in each theme. The check box next
to each theme indicates whether or not it is turned on or off in the map (whether it is
currently drawn on the map).
Theme: A set of related geographic features, such as streets, parcels, or rivers, and the
characteristics (attributes) of those features.
Tables
: Information formatted in rows and columns. A component of an ArcView
project used for displaying Tabular data.
Layout
: The design or arrangement of elements in a digital map display or printed
map. A component of an ArcView project used for creating presentation-quality maps.
Hotlink: In ArcView, a way to display data (for example, a file, image, ArcView
document, or project) directly from a view, by clicking on a feature.
107
Identify
Tool
Edit Tool
Select Tool
Record
Counter
Help
Sort Descending
Sort Ascending
Calculate
Summarize
Join
Promote
Query Builder
Find
Create Chart
Switch Selection
Select None
Select All
Paste
Copy
Cut
Save Project
Coordinates
Scale
Drawing and
Editing
Tools
Text
Label
Hot Link
Area of
Interest
Measure
Pan
Zoom Out
Zoom In
Vertex Edit
Select
Feature
Pointer
Identify
Help
Select Features
using Graphics
Clear Selected
Features
Zoom to Previous
Extent
Zoom Out
Zoom In
Zoom to Selected
Zoom to Full
Extent
Zoom to Active
Theme
Query Builder
Locate Address
Find
Open Theme
Table
Edit Legend
Theme
Properties
Add Theme
Save Project
ArcView Buttons Reference Guide
View - Buttons
View – Tools
Push and hold to select tool
Point
Line
Polyline
Rectangle
Circle
Polygon
Line Split
Polygon Split
Auto Complete
Table - Buttons
Table - Tools
108
Frame Tools
Drawing Tools
Text Tool
Pan Tool
Zoom Out Tool
Zoom In Tool
Vertex Tool
Pointer Tool
Help
Print
Zoom Out
Zoom In
Zoom to Selected
Zoom to Actual
Size
Zoom to Page
Help
Find
Series From
Records/Fields
Chart Properties
Pie Chart Gallery
Line Chart
Gallery
Column Chart
Gallery
Bar Chart Gallery
Area Chart
Gallery
Undo Erase
Save Project
Undo
Layout - Buttons
Scatter Chart
Gallery
Chart Colour
Tool
Chart Element
Properties
Tool
Erase Within
Polygon Tool
Erase Tool
Identify Tool
Chart - Tools
Send to Back
Bring to Front
Ungroup
Group
Layout Properties
Paste
Copy
Cut
Save Project
Chart - Buttons
Layout - Tools
Push and hold to select
tool
View Frame
Legend Frame
Scale Frame
North Arrow Frame
Chart Frame
Table Frame
Picture Frame
For more Information: http://www.esricanada.com
109
Getting Started
Before you begin, the lesson data folder must be copied into a drive in which the student has
writing and editing capabilities. This will probably be the drive containing your own personal
account on the school’s system or it may be the C: drive of the machine you are currently
working on. If the latter is the case you will have to work on the same machine each day until this
assignment is complete. Each school set-up is different so work with your teacher to prepare your
data folder.
! (The data for the lesson must first be downloaded from this Web site and placed on the school
computer or network. The data are downloaded as a self-extracting file. Double click the file in
windows explorer to extract all the data files. Ask your teacher where to find the data folder that
has been downloaded).
To do this, use the file manager program on your computer. For Windows-based systems this will
be My Computer / Windows Explorer /.
Once the data folder has been copied to the required destination
the files must be made usable by removing the read only
attribute. For Windows-based systems follow these instructions:
! (The data downloaded from the Web Site is set as read only so
that it cannot be changed or altered by accident.)
1. Open your new data folder.
2. Choose Edit > Select all (they will all
appear Blue)
3. From the menu choose:
File > Properties
4. Remove the check mark in the
box beside the label read only.
5. Click Apply, and then OK.
The data in your new data folder can now be opened, edited and saved using ArcView or
other GIS software that can use SHAPE files to carry out the following project.
! Denotes an observation.
? Denotes a question to be answered on the Student Activity Sheet.
110
STARTING THE PROJECT
This lesson will emphasize the use of Geomatic data to study several aspects of the global
economy, gross domestic product, income disparity, poverty, external debt, and foreign
investment.
STARTING ArcView
Begin by starting up the ArcView program. If you are not sure how to do this, ask your teacher.
1. Choose as a blank project
2. Click O.K.
When the program starts, it automatically opens a project window
titled "Untitled."
If you like, you can maximize the ArcView window to fill the screen.
! In ArcView, you work within a project. A project is a collection of
documents (map views, tables, charts, layouts, etc), document user
interfaces, (called DocGUIs) and scripts. Only one project is open at
a time.
3. Now you are ready to add documents to your new project.
4. With the “Views” icon selected, click on New and
maximize the View1 window.
button and navigate to the data folder
5. Click the Add Theme
where your data is stored. Hold down your SHIFT key and select the following files:
base.shp
ext_debt.shp
for_invest.shp
gdp_pc.shp
gini.shp
poverty.shp
111
6. Click O.K.
This will add these six themes to the table of contents of the new view. They are now available for
display and editing.
7. Click and drag to move the themes up or down in the table of
content to change the order of display if necessary.
! Note the themes are displayed from the bottom to the top so
line and point themes should be on top of polygon files to be
visible.
8. Click on the square next to the themes you want to display.
The theme that appears raised in the table of contents is the
current active theme. This can be change by clicking on other
themes.
9. Remember to Save your project as you go along. Go to the
File menu and select Save Project. Save your work to the
appropriate directory (ask your teacher if you are not sure). Give
your project a name that will identify your work. (The suffix .apr
means that you are saving your work as a project that can be
opened up in the future).
ArcView - DISPLAYING A MAP
Mapping Gross Domestic Product Per capita
1. From the Project window select the Views icon.
2. Select and open View1.
3. Double Click the gdp_pc.shp theme to edit it.
4. Open Legend Type list.
5. Select Graduated Colour.
6. Open Classification Field list.
7. Select gdp2000
8. Click Apply.
9. Close Legend Editor window.
! This will display the gross national product per capita
for each country for 2000 in Constant 1995 US dollars
per person.
Data are missing for some countries.
? Can you see and describe the distribution of developed countries, developing countries
and under developed countries?
Use the zoom button
to look at Europe.
? Describe the pattern in the GDP you see in the European region?
112
Use the Identify Tool to
query a country to get its name and other details.
Redisplay the map using different years. E.g. (gdp1995 or gdp1987)
? How do the maps change? What are some possible reasons for the changes?
ArcView - CLASSIFYING A MAP
1. Double Click the gdp_pc theme.
2. Click Classify.
3. Select Type Equal Intervals.
4. Click O.K.
5. Click Apply.
6. Close Legend Editor window.
? How did the map and legend change?
Repeat this process using different classification types.
? How did the map and legend change with the different classification types?
? Why is it important to select the proper classification?
ArcView - DISPLAY DATA AS CHARTS
We will now display income disparity using charts.
The data used show the share of the total income for the
lowest, fourth, middle, second and top 20% of the population.
1. Double Click Gini theme.
2. Open Legend Type list.
3. Select Chart.
4. In the Fields List, Select Lowest.
5. Click Add.
6. Repeat for Fourth, Middle, Second, and Top.
7. For Chart Type Click Bar Chart.
8. Double Click Background Symbol and Select a
Background Symbol that does not conflict with your
legend colours.
9. In the Legend Editor window, Click Properties to alter the look of the charts.
10. Click OK.
11. Click Apply.
12. Close Legend Editor window.
113
? By zooming in and comparing the charts, can you describe the graphs of several
countries?
? What does this tell you about income equity?
! Plotting distribution: Lorenz curves and GINI index:
For a more detailed explanation of the GINI index, please
check the book ‘’Global Connections: Canadian and World
issues, Bruce Clark and John Wallace, Prentice Hall, 2003
pages 203-204.
We can start with the nearby graph, derived from the numbers
in the table. The horizontal axis shows the quintiles of
population; the vertical, the cumulative share of income earned
by the plotted quintile and the ones below it. For example, in
1968, the cumulative value for quintile 1 is the share earned by
quintile 1, or 4.2%; that for quintile 2, 11.1%+4.2%, or 15.3%;
and so on, up to quintile 5, when the sum is 100%. The graph
plots these values for 1968 and 1992. These lines are called
Lorenz curves.
In a society with perfectly equal income distribution, the cumulative share of income would be
equal to the cumulative population share: e.g., the value for quintile 2 would be 40% (20%+20%),
instead of 1968's actual 15.3%. This mythical egalitarian society is represented by the heavy 45°
line. A bar chart similar to those on the map for the mythical egalitarian society would look like the
sample chart below.
The gap between the actual lines and the mythical line is
a function of the degree of inequality; the 1992 line is
further away from the heavy line than 1968's is. The Gini
index measures the gap between the actual line and the
45° line. In the egalitarian society, the Gini would be
0.000, since the Lorenz curve would match the 45° line
perfectly; the higher the Gini, then, the greater the
distance, and the more unequal the distribution of income.
In a perfectly unequal society, in which one person (or
household or family) had all the income, the Lorenz curve
would look like a backwards "L," and its value would be
1.000. In practice, the Gini usually falls between 0.200
and 0.450. The U.N. uses a Gini value of 0.4 as a warning
level that countries of economic disparities are becoming
excessive.
? Select several countries and compare the charts
and data with the mythical ideal graph presented above. What can you say about the
income inequity in each of the selected countries?
Use the Identify Tool to
Lorenz curves.
query five countries to get the data needed to prepare
114
? After plotting the data as Lorenz curves can you describe the income equity for each of
the countries?
ArcView - BUILDING A QUERY
We will now build a query to explore the level of external debt held by each country. The data are
presented (in Million current US dollars)
1. Double Click the ext_debt.shp theme to edit it.
2. Open Legend Type list.
3. Select Graduated color.
4. Open Classification Field list.
5. Select T2000.
8. Click Apply.
9. Close Legend Editor window.
! This layer has the total external debt carried by each country 1987 to 2000.
Now let’s build a query to find all the countries with a total external debt greater
than $10 billion in 2000.
1. Select and activate ext_debt theme.
2. Click Query Builder button.
3. Double Click Field T2000.
4. Click the > button.
5. Enter 10000 in the equation.
6. Click New Set button.
7. Close query window.
? List five countries that had a total external
debt greater than $10 billion?
? Describe the global pattern of external debt over $10 Billion in 2000?
8. Click Clear Selected Features button.
Using the same process as used for 2000, choose other years and or debt limits.
9. Click Query Builder button.
10. Double Click Field T1987.
11. Click the > button.
12. Enter 15000 in the equation.
13. Click New Set button.
14. Close query window.
? List five countries that had a total external debt greater than $15 billion in 1987?
115
? Describe the global pattern of external debt over $15 Billion in 1987?
Let's build more querries to explore total external debt.
ArcView - DISPLAY PERCENTAGE DISTRIBUTION OF POVERTY
We will display poverty as the percentage distribution
of country population earning < $2 and < $1 a day
1994 to 1999.
1. Double Click Poverty theme.
2. Open Legend Type list.
3. Select Graduated Colour.
4. Open Classification Field list.
5. Select <$2.
6. Click classify button.
7. Open Type list.
8. Select Equal Intervals and 10
classes.
9. Click OK.
10. Click Apply.
11. Close Legend Editor window.
? What can you say about the global distribution of
Population living below $2/day?
? Are there regions not represented?
? Why?
! To have a completed map, we will put a no data item in our legend for those countries that do
not have representation.
12. Double Click poverty theme.
19. In the Legend Editor window, Click on
the
Null
Value
button.
14. Check Include No Data Class In Legend box
15. Click OK.
16. Double Click no data legend item.
17. Click The Colour Palette button.
18. Select a new colour for the no data legend item.
19. Open The Colour list, Select Outline.
116
20. Select black for outline colour.
21. Close Colour Palette window.
22. Click Apply.
23. Close Legend Editor window.
! Using the same process that was used to display Population living below $2/day, display the
Population living on less than $1/day. Explain the distribution patterns you see.
? Explain the distribution patterns you see for poverty.
? How does it compare with the map for $2/day?
ArcView - MAP LAYOUT FOR PRINTING
Once you have a map classified and displayed to your satisfaction, you should prepare a map
layout that can be used for printing. The purpose of this lesson is to set up your map on a page
and annotate it for presentation.
SET UP MAP
1. Click Menu View.
2. Click Layout.
3. Select the Layout Template you want to use
(One of the landscape templates is suggested) .
4. Click O.K.
5. Maximize the Layout screen.
EDIT TITLE
1. Double click on the title View1.
2. Edit the title to reflect the purpose of the map, e.g., poverty, and GDP.
3. Click O.K.
4. Resize the title using the corner handles and move it into a position that is visually balanced.
5. Click and drag to reposition the legend if necessary.
EDIT NORTH ARROW
1. Double click on the north arrow and select a different presentation. Ensure that the arrow is
pointing in the representative north direction of the map.
2. Click and drag to reposition or rotate (using rotation function) as needed.
EDIT SCALE BAR
1. Double click the scale bar.
2. Choose a new style of scale bar. The scale bar has default properties so you will not be able to
change everything to the way you want.
3. Change the units to kms.
4. Find a combination of style, scale and divisions that is visually pleasing.
117
5. Click and drag to position to an appropriate location.
ADD LABELS, TEXT, OTHER INFORMATION
1. Click on the Text tool.
2. Click at the position on your layout where you want the text to appear.
3. In the Text Properties box, enter your text, e.g., “produced by (your name, date)”.
4. Select desired formatting information such as alignment, spacing and rotation.
5. Click O.K. when it appears, as you want it.
6. Click on Pointer tool.
7. Select the new text
8. Click once to change location or size. Click twice to change content.
! Experiment with all of the components of the layout until you have the look you want.
CHANGE THE NAME OF THE LAYOUT
You only have to do this if you want to save your project on the computer or on a disk.
1. Click menu Layout.
2. Select Properties.
3. Change the “name”. Click O.K.
ARRANGING YOUR LAYOUT
! Experiment with the layout buttons (use the tools page provided at the beginning of this lesson
if you are unsure of their function).
- to group (tie pieces together so they move as one)
- to ungroup (break apart the ties so that individual pieces move)
- bring to front ( change order that pieces were laid down, e.g., lines on top of
polygons)
- send to back ( change order that pieces were laid down, e.g., polygons behind lines)
- zoom ( make image bigger or smaller)
- neat line (border around layout)
PRINT MAP LAYOUT
1. Click Print button.
2. Click Setup.
3. Select your printer properties as outlined by your teacher.
4. Click O.K. to print.
! Note that the map can also be saved to a printer file.
118
NAME: _____________________________
Student Worksheet 8
THE GLOBAL ECONOMY GIS LESSON
DATE: _____________________________
Instructions: The following answers can be found in the GIS lesson.
1. Can you see and describe the distribution of developed countries, developing and under
developed countries?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
2. Describe the pattern in the GDP you see in the European region?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
3. How do the maps change? What are some possible reasons for the changes? Describe
the change in maps and provide possible reasons for the changes?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
4. How did the map and legend change?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
5. How did the map and legend change with the different classification types?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
119
6. Why is it important to select the proper classification?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
7. By zooming in and comparing the charts, can you describe the graphs of several
countries?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
8. What does this tell you about income equity?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
9. Select several countries and compare the charts and data with the mythical ideal graph
presented above. What can you say about the income inequity in each of the selected
countries?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
10. After plotting the data as Lorenz curves can you describe the income equity for each of
the countries?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
11. List five countries that had a total external debt greater than $10 billion?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
12. Describe the global pattern of external debt over $10 Billion in 2000?
_______________________________________________________________________
_______________________________________________________________________
120
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
13. List five countries that had a total external debt greater than $15 billion in 1987?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
14. Describe the global pattern of external debt over $15 Billion in 1987?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
15. What can you say about the global distribution of Population living below $2/day?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
16. Are there regions not represented?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
17. Why?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
18. Explain the distribution patterns you see for poverty?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
19. How does it compare with the map for $2/day?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
121
Globalisation
GLOBALISATION FACT SHEET
Refers to the process of integrating the global
economy;
also
known
as
economic
globalisation:
ISSUES
•
•
Globalisation is the buzz word for the twenty-first
century, but it has no clear cut definition.
The WTO, IMF and World Bank are the three
international economic organizations responsible
for ensuring global economic integration through
free trade, the rapid spread of technology and
consumption.
Economic “globalisation” is a historic
process,
the
result
of
human
innovation and technological progress.
It refers to the increasing integration of
economies
around
the
world,
particularly through trade and financial
flows.
-International Monetary Fund
THE GLOBAL MANAGERS
The International
Monetary Fund
HQ: Geneva
Establishes rules for world trade,
reduces trade barriers, administers
trade agreements and handles
trade disputes between nations
(www.wto.org)
HQ: Washington
Promotes international monetary
co-operation, exchange stability
and orderly exchange
arrangements. The IMF also
provides temporary financial
assistance (www.imf.org)
World Bank
HQ: Washington
One of the world’s largest sources of development aid, provides $17.3 billion US
in loans and works in more than 100 developing countries (www.worldbank.org)
Winners and Losers of Trade
High-income countries expect to gain
more than twice as much as the rest of
the world, while Africa actually loses.
Trade barriers in the North cost the
economies of the South an estimated
$100 billion a year – at least double the
amount of development aid.
Sources: Secretary-General’s report to the UN
Preparatory Committee on Financing for
Development, January 2001; John Madeley,
Trade and the Poor, Intermediate Technology,
1996 quoting OECD figures; New Internationalist
334: WTO - The Facts (May 2001)
Globalization has the potential to lift
millions of people out of poverty, but
experience in developing countries
tells us that the gap between rich and
poor is growing, while corporations
and developed countries are increasing
their wealth.
Before you finish eating breakfast
this morning, you depended on
more than half the world.
- Martin Luther King, Jr.
122
TERMS OF TRADE
Many of the world’s poorest economies have been forced to
export more and more basic, ‘primary’ commodities - like metal
ores, or coffee and foodstuffs - by the ‘structural adjustment’
policies of the World Bank and the IMF. Markets for these primary
exports have been flooded. As a result, the prices of these
commodities have fallen, while the prices of the things they import,
mostly from rich countries, have risen.
DID YOU KNOW?
2/3 of international trade is accounted for
by just 500 corporations
Of the world’s 100 largest economies 51
are corporations
The top 200 corporations’ combined
sales are bigger than the combined
economies of all countries minus the top
10
The top 200 corporations increased their
share of total sales in services from 34%
in 1983 to 47% in 1999
Country or Corporation
GM
Denmark
Wal-Mart
Exxon Mobil
Fod Motor
DaimlerChrysler
Poland
Norway
Saudi Arabia
Finland
Thailand
Mitsubishi
General Electric
Portugal
GDP or Total Sales
$ millions US
176 558
174 363
166 809
163 881
162 558
159 985
154 146
145 449
128 892
126 130
123 887
117 765
111 630
107 716
Source: Sarah Anderson and John Cavanagh (2000) “The Top 200"
Washington: Institute for Policy Studies.
CORPORATE POWER
• The combined sales of the world’s 200
corporations are equal to 26% of the
world’s Gross National Product
• BUT these same top 200 employ less
than 0.75% of the world’s workforce
• Global retailers like Coca Cola, Procter &
Gamble, Philip Morris, Kellogg, PepsiCo,
Nestle, KFC and McDonald’s spend
billions of dollars on advertising and
promotion each year to create a global
market based on mass consumption
• Some schools in Canada have even
partnered with the Youth News Network a corporate initiative that sells advertising
spots on a 10 minute news program
which is then shown in schools
In the last four years of the millennium
the amount of people living in abject
poverty world wide increased by 200
million. In those same four years, the
world’s 200 richest people doubled their
wealth.
(Global village or global pillage)
123
FAIR TRADE FACT SHEET
ISSUES
Fair trade
Refers to a trading partnership between
producers, traders or buyers, and
consumers which provides a more
equitable and sustainable form of
exchange.
• Free trade has the capacity to lift millions
Free trade
of people out of poverty but instead, wealth
Refers to the gradual phasing out of trade
is concentrated in the hands of already rich
barriers, such as tariffs or subsidies, to
northern processors, merchants and
allow for easier access to international
retailers.
markets
• The prices of commodities, such as
bananas, coffee or cocoa have fallen,
sometimes drastically, over recent years,
leaving producers in the South at the mercy of wildly fluctuating prices.
OH CANADA!
FRUIT AND BANANAS
THE FACTS
In 1996, almost a billion dollars worth of
fruit and fruit products was imported into
Canada from the South.
Between 1987 and 1997, the quantity of
fruits imported into Canada from the South
increased by approximately 45 %, from
452 to 656 million kilograms worth of fruit
and fruit products.
Did you know?
Together, the apparel and
textile industries are the
largest industrial employer in
the world. The apparel sector
represents about half of the
global industry. More than
23.6 million workers are
employed in the garment
industry worldwide. Close to
75% are women.
Source:
Maquila
Solidarity
Network
www.maquilasolidarity.org
Cocoa and Coffee
FACTS
Total chocolate sales in Canada in 1996
reached $1,109 billion or 163 billion
kilograms.
67% of Canadians drink coffee everyday,
drinking on average three cups a day.
Clothing Industry FACTS
By 1998, 46% of the $8 .7 billion worth of
apparel bought by Canadian consumers was
imported.
Sources: Statistics Canada, Imports, Imports by
Commodity, 1998; The Coffee Association of Canada;
International Cocoa Organization; Statistics Canada
1999, Clothing Imports by Value
EFFECTS OF CASH CROPS
Large scale farming in the south results in:
•
The loss of biodiversity and excessive use of highly toxic
pesticides
•
Soil erosion and siltation of waterways
•
Poor working conditions, including low wages and denial of
the right to organize
•
Reduced self-reliance of small growers, and their
displacement by large foreign-owned enterprises
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FAIR TRADE ALTERNATIVE
The fair trade alternative offers producers the
chance to deal with suppliers directly, and
guarantees them a fair price - one that represents
the cost of labour and production.
Before you finish eating breakfast
this morning, you will depend on
half the world.
- Martin Luther King Jr.
All products bearing the
fair trade label must
adhere to the following
principles:
In Canada, all fair trade labelling is organized through TransFair
Canada (TFC). TFC is a membership based, not-for-profit company
that owns and lincenses the TransFair label.
•
Paying fair prices to
producers which
recognize the cost of
labour and
production
•
Buying directly from
producers and pay an
advance of up to 50% to
allow producers to buy
seeds, tools and materials
•
Raising awareness among
consumers of the negative
impact of traditional trade
on small producers
•
Protecting human rights by
promoting social justice,
sound environmental
practices and economic
security
•
Working with
democratically-run
organizations like cooperatives and self-help
groups
•
Promoting development
opportunities for women
and indigenous people,
and to protect children
from exploitation in the
production process
Check out: www.transfair.ca
For a complete list of fair-trade retailers in Ottawa!
Other organization involved in fair trade include:
BRIDGE HEAD
Sells a variety of fair trade products, including coffee, tea and cocoa. T
coffee shops in the Ottawa area
Check out: www.bridgehead.ca
TEN THOUSAND VILLAGES
Sells fairly traded handicrafts, coffee, tea, and other knick knacks.
Their store is staffed by volunteers who give their time to promote
fair trade.
Check out: www.tenthousandvillages.ca
Ethical Consumerism
As a customer, the products you buy reveal what companies you
wish to support. Buying power means you can pressure distributors
and retailers to stock the products that adhere to the principles of fair
trade.
Source: International
Federation of Alternative Trade
125
DO SOMETHING !
What can you do?
•
•
Become more aware of global issues such as international trade, child labour, poverty
and globalisation
Examine your current lifestyle; how does it affect others?
•
Hold a fair trade workshop at your school, local community centre, or at your kitchen
table
Check out: www.oxfam.ca for a detailed workshop kit
•
Hold a No Sweat Fashion Show! at your high school, to raise awareness of
Sweatshop fashion. Check out: www.maquilasolidarity.org for everything you need to
start your own No Sweat Fashion Show
•
Write a letter to newspaper or your favourite coffee shop chain expressing your
concern for economic fairness, and fair trade
•
Buy your coffee at the many fair-trade retailers in the Ottawa area. For a complete list
check out www.transfair.ca
126
GLOSSARY
Apparel: clothing, especially outer garments; attire.
Boycott: to combine together in refusing to deal or associate with.
Corporate ethics: adherence to a code of conduct on ethics where companies encompass
human rights into their business strategy.
Corporate social responsibility: corporate social responsibility (CSR) is about the core
behaviour of companies and the responsibility for their total impact on the societies in which they
operate.
Development Assistance: grants or Loans to countries and territories which are undertaken by
the official sector with promotion of economic development and welfare as the main objective.
Economic Colonialism: Colonialism is a system in which a state claims sovereignty over
territory and people outside its own boundaries, often to facilitate economic domination over their
resources, labour, and often markets.
Fair Trade: a market system that is to some degree regulated, to ensure that producers benefit
from trade; e.g., producers are guaranteed a minimum price when they sell their product. Fair
trade is based on the belief that marginalized producers in developing countries do not benefit
from free trade.
Foreign investment: investment in one country by governments or corporations owned in
another country.
Free Trade Area of the Americas: special areas and considered not part of the customs territory
of America where the goods not being in the free-circulation are placed not subject to the
customs formalities and not in the release for free circulation provided that they are not used or
consumed in the circumstances prescribed in the customs legislation; however; are deemed not
being on the American the custom’s territory in respect of import duties and commercial policy
measures; are the premises in which the goods released for free circulation are placed to benefit
from the normal export procedures.
Free Trade Zones: an area within a country (a seaport, airport, warehouse or any designated
area) regarded as being outside its customs territory. Importers may bring goods of foreign origin
into such an area without paying customs duties and taxes, pending their eventual processing,
transshipment or re-exportation. Free trade zones may also be known as “free ports”, “free
warehouses”, and “foreign trade zones”.
Garment: an article of clothing.
GDP: Gross Domestic Product is a statistical measure of value of final goods and services
produced by a nation’s economy.
General Agreement on Tariffs and Trade: treaty organization affiliated with the United Nations
whose purpose is to facilitate international trade. This agreement was first signed in 1947. It was
designed to provide an international forum that encouraged free trade between member states by
regulating and reducing tariffs on traded goods and by providing a common mechanism for
resolving trade disputes. GATT membership now includes more than 110 countries.
General Agreement on Trade in Services: an agreement in which the goal is to further
liberalize services in the public domain. It is a multilateral agreement that defines restrictions on
127
a broad range of government measures that in any way may potentially affect the trade in
services.
GINI Index: a measure of income inequality, which ranges from 0 (complete inequality) to 1
(complete equality).
Globalisation: the trend towards greater interconnectedness of the world’s financial, economic,
technological, political, cultural, sociological, ecological, and geographical systems. Some argue
that globalisation improves living standards through out the world, while others say that its effects
are more harmful than beneficial.
G8: an informal group of eight countries: Canada, France, Germany, Italy, Japan, Russia, the
United Kingdom and the United States. Each year, G8 leaders and representatives from the
European Union meet to discuss broad economic and foreign policies. Its main objectives are to
support economic growth, reduce global poverty, strengthen good governance, work toward
sustainable development, promote peace and security, and improve global public health and
public safety.
G20: promotes discussion, and studies and reviews policy issues among industrialized countries
and merging markets with a view to promoting international financial stability.
Hectare: One hectare (ha) is 10,000 square meters (100 x 100 meters). One hectare is equal to
2.47 acres.
Home workers: workers who mainly work within the household.
Inflation: a persistent increase in the level of consumer prices or a persistent decline in the
purchasing power of money, caused by an increase in available currency and credit beyond the
proportion of available goods and services.
International Monetary Fund: a United Nations agency to promote trade by increasing the
exchange stability of the major currencies. [syn: International Monetary Fund, IMF]
Interest Rates: the percentage fee received or paid by individuals or organizations when they
lend or borrow money.
International Trade: a transaction of a security or commodity.
Living Wage: a wage sufficient to provide minimally satisfactory living conditions. Also called
minimum wage.
Lesser Developed Countries: lesser industrialized countries than the developed countries
whose economies have created a certain level of consumerism, wealth, and a certain
development of infrastructure.
Lilliput Strategy: similar to the Lilliputians in Gulliver’s Travels who were able to capture Gulliver,
even though he was many times their size, by tying him with hundreds of threads, workers and
communities are reversing the Race to the Bottom by joining together around the world. Instead
of competing in the Race to the Bottom, people are creating new grassroots movements using
new technologies that go beyond borders; making coalitions between labour, environment,
consumer, children’s rights, and various other groups; etc.).
MAI: the Multinational Agreement on Investment is an investment treaty currently being
negotiated within the OECD. The MAI is designed to restrict governments from regulating
corporate behaviour.
128
Maquila: any partial activity in a manufacturing process, such as assembly or packaging carried
out by someone other than the original manufacturer.
Multi-National Corporations: corporations or companies based in more than one country.
North American Free Trade Agreement (NAFTA): a trade agreement that came into effect on
January 1, 1994, which called for the gradual removal of tariffs and other trade barriers on goods
produced and sold in North America.
Pad Thaï: Pad Thai, which means "soft noodle," is a flavourful combination of noodles, tofu and
eggs in a spicy peanut sauce. Pad Thai is one of the most popular Thai dishes.
Poverty: Poverty is hunger. Poverty is lack of shelter. Poverty is being sick and not being able to
see a doctor. Poverty is not being able to go to school and not knowing how to read. Poverty is
not having a job, is fear for the future, living one day at a time. Poverty is losing a child to illness
brought about by unclean water. Poverty is powerlessness, lack of representation and freedom
(World Bank).
Race to the bottom: a term used by some to describe the competition between Third World
countries for foreign investment. Countries are forced to outbid each other in offering cheaper
labour and offering more stringent legislation to control labour. Corporations can choose between
people and countries, putting them up against each other to see who can provide the lowest
wages and cheapest environmental standards.
Structural Adjustment Programs (SAP): an economic policy imposed on a country so that it
can qualify to receive financial help from international agencies such as the World Bank of the
International Monetary Fund.
Sweatshops: a shop or factory in which employees work long hours at low wages under poor
conditions.
Trade agreements: an agreement between countries on how they conduct the trade of goods
and services (See NAFTA as an example).
World Bank: a specialized agency that furthers the economic development of member nations,
chiefly through guaranteed loans. The Bank obtains most of its funds through borrowings, and
the remainder through government subscription. Since voting power is proportional to the
amount of money received from each government, the Bank is essentially controlled by the richer
countries.
World Trade Organization: the only global international organization dealing with the rules of
trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk
of the world’s trading nations and ratified in their parliaments. The goal is to help producers of
good and services, exporters, and importers conduct their business.
129
Resources
VIDEOS
Banana Split
A film by Ronald Harpelle & Kelly Saxberg; Canada; Louis Paquin of Les
Productions Rivard
"Banana Split" is a one-hour documentary about the banana industry and the lives of
people who produce, market and consume the fruit. It offers a social analysis of the most
popular fruit in Canada looking at its voyage from the plantations to our super market
shelves.
(Available from the WIAM library: wia@web.net)
Breaking the Bank
74 Min.
After the Seattle victory that stopped the World Trade Organization in its "fast" tracks,
thousands converged on Washington D.C. to challenge the International Monetary Fund
and the World Bank at their meeting in April, 2000. Videomakers from the Independent
Media Center were on the spot to provide the non-corporate coverage you won't find
anywhere else.
(Available from the WIAM library: wia@web.net)
Cola-colonization [videorecording] : Coca-Cola's unquenchable thirst for global
dominance
Produced by DLI Productions in association with Channel Four, Canadian Broadcasting
Corporation, Télé-Québec. Montréal, Québec : DLI Productions, c1998.(51 min.)
Tea spills in China, wine in France and blood in Guatemala, as Coca-Cola teaches the
world to acquire a taste for "The Real Thing". But as Coke - and Pepsi - are busy abroad
conquering new markets, upstart colas are nipping at their heels back home. From the
jungle of Papua New Guinea to the "Coca-Cola Olympics" in Atlanta, we see the
globalisation of American pop culture, and corporate influence on the souls of nations.
(Available at the University of Ottawa Library: MRT Audiovisual VH05753)
Coffee with a Conscience
CBC Marketplace. 2000.
This documentary looks at the coffee industry from the viewpoint of the local farmer, the
purchaser and the consumer. Fair trade coffee is analyzed as an alternative coffee
product, offering the local farmer better return for their coffee harvest.
(Available from the WIAM library: wia@web.net)
130
Common Grounds: Giving Coffee a New Flavour
1998, 52 Min
This film promotes the concept of fair trade in coffee, whereby growers in places such as
Chiapas, Mexico, have established co-operatives to pool resources and ensure that they
command a fairer price for their coffee. The consumer has an important role to play in
forcing change and equity in global trading par.
(Available from the WIAM library: wia@web.net)
Economics: Reinventing the World Series
Asterisk Film and Video, 2001 (approx 50 min)
This dismal science comes alive in the wake of the summit of the Americas, where
questions raised by protests in Quebec City, Seattle and Davos get provocative
responses and bring the issues home to our own households.
(Available at the Ottawa Public Library)
Economix Series
National Film Board of Canada, 1996. (4 videos, each approx 30 min.)
Volume 1 explores how human needs and wants, along with a finite amount of resources,
have resulted in the development of "The Market," in which supply and demand influence
pricing, revenue, and profit. Volume 2 looks at production and consumption. Volume 3
examines the banking system and the role of government. Finally, Volume 4 offers a
perspective on the global economy, free trade, and international competition.
(For more information see: http://www.umanitoba.ca/cm/vol7/no15/economix.html)
The Emperor's New Clothes, A Cautionary Tale of Free Trade
NFB, The short English version, 53 Min 5 Sec.
Filmed in Canada, the United States and Mexico over a three year period, this provocative
documentary immerses itself in the stark reality of life before, during and after the signing
of the North American Free Trade Agreement (NAFTA). It takes an incisive look at the
profound effects that economic agreements between big business and government can
have on human lives, including increased cuts to social programs, massive
unemployment, environmental damage, and demoralization.
(Available from the WIAM library: wia@web.net)
131
Global capitalism and the moral imperative / [videorecording]
Princeton, NJ: Films for the Humanities, 1998. (29 min.)
In the rising tide of the global economy, moral leaders warn that global "laisser-faire" is
producing consequences similar to those of the 19th century, when gaps between rich &
poor kept thousands in abject poverty for generations. In this new era of social
Darwinism, moral leaders are asking who in the world community will care for the needs
of the poor, and how it will be accomplished. If economic and political reforms are
necessary...who will initiate them and how [will they be enforced].
(Available at the University of Ottawa Library: MRT Audiovisual VH05594)
The Global Marketplace: The Benefits of Globalisation
2001, 30 Min.
Many people around the world believe a keen business sense is not incompatible with a
social conscience. Although the ‘60’s may have come and gone, some of the values that
emerged in those times are making themselves felt in corporate boardrooms. The baby
boomer generation, which since adolescence has set the tenor of the times, influences
the age of globalisation by struggling to persuade the people with the purse strings to set
ethical investment policies and corporate codes of conduct.
(Available from the WIAM library: wia@web.net)
Global Pillage
CLC, 17 Min. 17 Sec.
This film looks at how multi-national corporations operate across borders, with specific
reference to the Toy Industry and Health and Safety Issues. Available both in English and
in French.
(Available from the WIAM library: wia@web.net)
Global Village or Global Pillage
How People Around the World are Challenging Corporate Globalisation
26 Min. 46 Sec.
This film describes how people around the world are challenging corporate globalisation.
(Available from the WIAM library: wia@web.net)
Globalisation [videorecording] : winner[s] and losers
Princeton, NJ: Films for the Humanities & Sciences, c2000. (42 Minutes)
Sabeer Bhatia, inventor of Hotmail, Narayan Murthy, founder of Infosys, and other
industry leaders attest globalisation has raised the standard of living in developing
132
economies through high-tech opportunities, foreign investment, and debt relief. Harvard's
Jeffry Sachs and other experts point out that the world market is being exploited through
short-sightedness. This program addresses the pros and cons of doing business in the
global marketplace.
(Available at the University of Ottawa Library: MRT Audiovisual VH06167)
International production relocation [videorecording]
Narrated by Jean-Marc Pissatia; researched by Dany Chedeville and directed by Chris
Gandjbakhch ; produced by Gulliver Education. Chicago: CLEARVUE / eav, c1998. (9
min.)
In today's booming global economy there remains a sharp divide between wealthy,
industrialized nations and poor, less developed ones. The lower standard of living in poor
nations provides them with an accidental asset: a low wage workforce, attractive to
multinational corporations seeking to cut costs. It remains to be seen whether the trend
toward production relocation will spark economic development around the globe, or
create a downward wage spiral that will impact workers in all countries, rich and poor.
(Available at the University of Ottawa Library: MRT Audiovisual VH06237)
In The Balance
Television Trust for the Environment; 24 Min., English Mix Version
This film looks at the struggles that third world countries endure to pay off their
international debt. Specific focus is places on Mozambique and how its citizens are
affected by debt.
(Available at the Ottawa Public Library: V330.9 T581)
Mass media in society [videorecording]
Producer, David P. Stone; produced in cooperation with the College Division of the
McGraw-Hill Companies, Inc. and Knowledge TV. Princeton, NJ: Films for the Humanities
& Sciences, [1998] (28 min.)
"The world is quickly becoming saturated with information, entertainment, and
advertisements. In this program, academic and industry experts examine the
globalisation of information exchange, the way in which it has altered the social distance
between nations and individuals, and the future of mass media. In the U.S., viewers
watch an average of 4.5 hours per day of television, willingly lending their eyes and ears
to advertisers. However, the 1990s have seen a growing fragmentation of America into
demographically segmented audiences, driven by niche programming and narrowinterest advertising. The enthusiasm for interactive communication is growing, spurred on
by the desire for news and entertainment tailored and delivered on demand and the
possibilities of one-to-one marketing. Is the concept of mass media on the verge of
extinction?"
(Available at the University of Ottawa Library: MRT Audiovisual VH05853)
133
News in review, 2002, February [videorecording]
Host, Knowlton Nash; writer, Mark Harrison; executive producer, Arnold Amber;
associate producer, Lou Kovacs. Toronto: CBC Non-Broadcast Sales, c2002. (59 min.).
ARGENTINA: COLLAPSE OF AN ECONOMY: After years of turmoil, Argentina, formerly
one of South America's healthiest economies, collapsed after defaulting on its national
debt of US$144-billion. The crisis brought down a number of interim Argentinean
government leaders, created violent protests in the streets, which killed more than 30
people, and seriously devalued the Argentinean currency. This tragic case study of the
breakdown of a national economy is the starting point for a study of many important
global economic policies and systems.
(Available at the University of Ottawa Library: MRT Audiovisual VH06956)
Tilt
National Film Board of Canada, 1994 (approx 20 min.)
An animated film exposition of what is wrong with our world and how a little more sharing
of wealth on the part of the “have” countries might ease the world’s economic ills. The
world is compared to the ball in a pin ball machine bouncing this way or that according to
how it is manipulated.
(Available at the Ottawa Public Library: V330.9 T581)
Trade off [videorecording]
Thomas Lee Wright; directed by Shaya Mercer; [Mercer Island, Wash.] : Wright Angle
Media, c2000; 90 min
This documentary tells the story of the World Trade Organization's first meeting on U.S.
soil in Seattle on November 29 through December 3, 1999, which was met with protests
of tens of thousands of people from a broad coalition of diverse communities.
(Available at the University of Ottawa Library: MRT Audiovisual VH06620)
Turbulence
NFB, 52 Min.
The global market is not a neutral territory, but an unprecedented state of
interconnections and interdependence. Circling the globe, director Carole Poliquin meets
squatters in Paris, families living on welfare in Quebec, factory workers in Thailand,
teachers in Ontario, fish processors in Senegal and debt-ridden Mexicans. She also
interviews some of the market speculators and fund managers who help dictate
economies worldwide and yet, for the most part, remain indifferent to the consequences
of their actions.
(Available from the WIAM library: wia@web.net)
134
Books
The World That Trade Created: Society, Culture, and the World Economy, 1400 - the
Present (by Kenneth Pomeranz and Steven Topik, Armonk, NY: M. E. Sharpe, 2001)
The book is a collection of short columns about global economic issues that the authors have
written over the years for World Trade magazine; the columns deal with everything from the
Fujian Trade Diaspora, to the Euro currency, to the story of guano (manure from the sea birds off
the coast of Peru). The brevity of the articles (usually one or two pages) and their highly readable
nature make the book well-suited for high school students. The book is especially useful for world
history, world studies, and macroeconomics teachers because it takes complex ideas and
presents them in a relevant and entertaining way.
The Debt Game (A simulation game: Christian Aid)
Discover how easy it is to accumulate huge debts despite making every effort to sell your
produce. This game begins to explore the complex issues of international debt and demonstrates
the difficulties experienced by a nation in balancing its books when financial control is maintained
by powerful international organisations. Playing time approx 80 minutes. For 15-30 players. Age
14+.
(Available from WIAM: 238-4659)
The Trading Game (A simulation game: Christian Aid)
This simulation game helps players understand the basic principles of international trade and
shows how the gap between rich and poor countries can be maintained and widened by trading
systems. Playing time approx 90 minutes. For 15 to 30 players. Age 14+.
(Available from WIAM: 238-4659)
Explorations of Global Issues (VIDEA)
This resource weaves together four current issues (Gender, Food Security, Consumerism,
Environment) explored in teacher-directed and student-centred activities.
(Available from WIAM: 238-4659)
OXFAM Campaigner (OXFAM Canada, 2000)
Special issue on sweatshops.
(Available for download from OXFAM Canada: http://www.oxfam.ca/education/index.htm)
Globalisation: Who is in Charge of Our Future? (CO-DEVELOPMENT CANADA)
A Secondary Teacher's Resource. This resource enables teachers to provide their students with
an overview of what globalisation is and how it affects people in Canada and in the developing
world.
The lesson plans and activities encourage critical thinking on the part of the students, viewing the
global economy from different perspectives such as business, governments and community.
(Available from WIAM: 238-4659)
Sweatshops: Clothes, the real cost of the clothes you buy (VIDEA, 1999)
This booklet examines who makes the clothes we wear, looking behind the labels to the realities
of the most globalized industry in the evolving global economy.
135
(Available from WIAM: 238-4659)
Barbie’s Trip around the World: Globalisation in the Toy Industry (VIDEA, 2000)
This booklet looks at child labour, the unhealthy and dangerous working conditions which are
common place in the international toy industry.
(Available from WIAM: 238-4659)
Behind the Swoosh (VIDEA, 2000)
This booklet looks at the working conditions in the overseas shoe factories. More than any other
company, Nike has been criticized for using Third World Sweatshops to make its products.
(Available from WIAM: 238-4659)
Challenging McWorld (by Tony Clarke and Sarah Dopp, Canadian Centre for Policy
Alternatives, 2001)
This book is designed to enable concerned youth to develop skills required for confronting
McWorld in their daily lives on several fronts. I”McWorld” is the symbolic term used to capture the
new realities of corporate-driven globalisation which engulf young people today.
(Available from WIAM: 238-4659)
The No-Nonsense Guide to Fair Trade (by David Ransom, New Internationalist, 2001)
The threads of a complex issue are pulled together into a summary of key concepts and factual
evidence – a lively, digestible and radical guide for the general reader as well as campaigners
and specialists in development, globalisation and international affairs.
(Available from WIAM: 238-4659)
The No-Nonsense Guide to Globalisation (by Wayne Ellwood, New internationalist, 2001)
This guide traces the journey towards a ‘borderless’ world. And in the process it shows that the
promise of globalisation is seductive, powerful – and ultimately hollow.
(Available from WIAM: 238-4659)
The Coffee Chain Game (Oxfam UK, 1994)
This is an activity about where coffee comes from, how it gets on the supermarket shelves and
how it affects the lives of the people who grow it.
(Available from WIAM: 238-4659)
136
WEB RESOURCES
Lesson Plans
Global Connections
http://www.globaled.org/curriculum2.html
13 lesson plans developed for the American Forum for Global Education. Topics include:
Democracy, A Global Perspective on Fast Food History, Comparing Cultures and
Modernisation, the World Trade Organisation.
Global Economics: A New York Times Learning Network Lesson Plan Unit
http://www.nytimes.com/learning/teachers/lessons/econ.html
55 lesson plans developed to be used in conjunction with articles from the New York
Times. Although you are required to pay for the Times articles, the lessons can be
adapted for use with other newspapers and different forms of media.
Issues in Global Education
http://www.globaled.org/issues/160/index.html
A brief introduction to the many views surrounding issues of global trade and the WTO's
role in the global economy. Included is a report on the need and value of the WTO by
Director General Mike Moore, an overview of trade issues and the context in which the
WTO operates; three classroom activities; and a variety of additional viewpoints
regarding the World Trade Organization.
Maquila Solidarity Network
http://www.maquilasolidarity.org
The Maquila Solidarity Network (MSN) is a Canadian network promoting solidarity with
groups in Mexico, Central America, and Asia organizing in maquiladora factories and
export processing zones to improve conditions and win a living wage. The MSN website
contains many action tools and resources that can be used in the classroom.
OXFAM Canada
http://www.oxfam.ca/education/index.htm
Founded in 1963, Oxfam Canada is a non-profit international development organization
that supports community programmes in food security, health, nutrition and democratic
development with an emphasis on working with women.
People’s Century – PBS Series
http://www.pbs.org/wgbh/peoplescentury/teachers/index.html
Classroom resources to accompany a 26-part PBS series looking at the world economy
over the course of the 20th century. The teacher’s guide for the last episode, “Fast
Forward,” deals with issues like the changing role of government, free-market ideology,
the gap between rich and poor, human rights and human endurance and the rise of the
global economy.
137
Planet Work – PBS show
http://www.pbs.org/livelyhood/planetwork/classroom/guide1.html
Part of a PBS series called livelyhood, Planet Work is a two part show that zig-zas the
globe (US, Italy, Brazil, Ghana, Cambodia and Singapore) to find out how people are
dealing with globalisation's effects on work life. Included on the site are classroom
resources to accompany a class viewing as well as follow-up activities.
The Polaris Institute
http://www.polarisinstitute.org/edu_tools/edu_index.html
Initially, the idea of the Polaris Institute was conceived in 1996 following a decade of
social movement building in opposition to two major free trade agreements that
dramatically restructured the economy and society here in Canada. The pivotal lesson
that emerged from this social movement experience was that transnational corporations
had effectively secured control over the reins of public policy making in this country [and
elsewhere] to the point where citizens were becoming politically disenfranchised.
The Victoria International Development Education Association (VIDEA)
http://www.videa.ca/resources.html
VIDEA has been involved in the promotion and delivery of global education in Victoria
and the Southern Vancouver Island area since 1977. VIDEA has actively engaged
teacher, students, youth and the general public in learning about and becoming engaged
in international issues with a particular focus on the need for socially just and sustainable
global development.
WTO in the Classroom
http://www.washington.edu/wto/classroom/curriculum.html
Curriculum for grades 6-12 produced by the Center for International Business and
Research at the University of Washington, in conjunction with the World Affairs Council of
Seattle. The curriculum, entitled "Approaching WTO Education: How to Bring WTO into
Your Classroom by Engaging Students in International Trade Disputes," was designed to
help teachers introduce their students to the concepts of international trade and the WTO
to help them better understand the WTO Ministerial Conference in Seattle Washington.
Global Teachnet
http://www.rpcv.org/pages/sitepage.cfm?id=268
The lessons in this website are suitable for high school level and higher. They were
written by Dr. Angene Wilson and her graduate students at the University of Kentucky.
Factual
Canada in a Global Economy
http://www.pakistaneconomist.com/database1/Industry/Ind175.htm
An article by Navroz Surani from a 2001 issue of the Pakistan Economist looking at
the impacts and implications of Canada’s growing economic integration with the
United States.
Global Consumer Culture
http://www.indiana.edu/~wanthro/consum.htm
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A page of links to other resources on global consumer culture and global environmental
issues.
Global Economy 101
http://www.globalexchange.org/economy/econ101/
A site put together by a group called Global Exchange that includes links, essays that
explore globalisation and a primer on economic literacy (“Why GDP is an inappropriate
measure of Economic Health”).
Humanizing the Global Economy
http://www.aflcio.org/publ/speech2002/sp0129.htm
Transcript of a speech – “The Moral and Human Dimensions of Work and Workers in the
Global Economy” – made by John J. Sweeney in Washington, DC on January 29, 2002
Introduction to Micro-economics
http://vlad1mir.tripod.com/index.htm
A very accessible introduction to micro-economics that breaks concepts down into
manageable, easy to understand chunks.
International trade case studies
http://www.portseattle.org/portandyou/educ/a02highintl.htm
As part of their page on careers in international trade and transportation, the Port of
Seattle has collected a number of different trade case studies for high school students.
The case studies range from dealing with trade tariffs to organic farming. Each one
includes a student and teacher copy for download.
The Progress Project
http://www.progressproject.org/webcasts.html
The Progress Project was an effort to engage citizens, scholars, leaders and
policymakers in the public and private sectors in a vital debate on economic, social,
technological and environmental progress. The site consists of transcripts of lectures
made by experts on a variety of different topics from the WTO in Seattle to debating the
limits of growth to an interview with former president Jimmy Carter.
Teaching About the Global Economy Using the Internet
http://www.ny.frb.org/pihome/educator/tchglobeco.html
A series of units put together by the Federal Reserve Bank of New York. Intended for use
in grades 9-12 the units cover foreign trade, foreign exchange, economic and monetary
union, developing nations and current global economic events. All units are large PDF
files available for download.
Teaching Global Issues
http://www.newint.org/index4.html
Teaching resources provided by the New Internationalist include political cartoons from
past issues and crossword puzzles as well links to other useful resources.
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Teaching Guide for Globalisation Essays
http://www.ssrc.org/sept11/essays/teaching_resource/tr_globalisation.htm
A teaching guide put together by the Social Science Research Council. Developed in the
wake of September 11, the guide introduces students to the economic, political and
social manifestations of globalisation.
Teaching Real-World Political Economy: Simulating a WTO Negotiation
http://www.mcb.unco.edu/FacultyStaff/WorkingPaperSeries/Jares/wto%20sim%20paper%201029-01.pdf
A PDF version of an academic paper by Timothy E. Jares that explores the complexity of
teaching political economy in the classroom through a simulated WTO negotiation.
Understanding the face of Globalisation
http://www.uwm.edu/Dept/CIE/Resources/globalisation/globaled.html#globallessons
Developed for the Center for International Education, this site has links to a number of
different sites relating to globalisation. Included is a list of 10 sites with already developed
lesson plans that range from World Trade-Offs: Exploring the Effects of World Trade on
Your City to Bonded for Life: Exploring the Modern Slave Trade to In the Global Ballpark:
Debating the Globalisation of Baseball.
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BIBLIOGRAPHY
Anderson, Sarah and John Cavanagh. 2000. “The Top 200". Washington: Institute for Policy
Studies.
The Canadian International Development Agency “Facts at a Glance” and “Country
Background” for Mexico (www.acdi-cida.gc.ca)
Christian Aid. 2000. The Debt Game.
Clark, Tony and Sarah Dopp. 2001. Challenging McWorld. Canadian Centre for Policy
Alternatives.
The Department of Foreign Affairs and International Trade Viva Mexico webpage
(http://www.dfait-maeci.gc.ca/mexico/glance-en.asp)
The Ecumenical Coalition for Social Justice: SAPs. www.ecej.org/saps%20briefing.htm.
Ellwood, Wayne. 2000. The No-Nonsense Guide to Globalisation. New Internationalist Magazine.
Environmental Media Services: FTAA Fast Facts. www.ems.org/ftaa/facts.html.
FTAA Official Website: Overview of FTAA Process www.ftaa-alca.org/View_e.asp
www.ilwu19.com/history/wto/ftaa/facts.htm
Goodman, Peter. 1993. "Reebok, Nike, and Levi Strauss on the Prowl for Cheap Labor in
Indonesia." The Progressive. June 26,1993.
Green Peace. http://archive.greenpeace.org/~ozone/wbfacts/fact2.html.
The Henning Center. http://henningcenter.berkeley.edu/gateway/imf.html.
IMF/World Bank: SAPs. www.users.skynet.be/cadtm/pages/english/infwb.htm.
IMF Stabilization Policies and Structural Adjustment Measures, The Central Bank of Zambia.
www.bized.ac.uk/virtual/dc/trade/bank/issue4.htm.
The International Federation of Alternative Trade. www.ifat.org.
The International Monetary Fund. www.imf.org.
MacCuish, Derek. 2000. Pillaged Lives: Third World Debt and Global Institutions. The Social
Justice Committee of Montreal. Montreal, Quebec.
Maquilasolidarity Network. www.maquilasolidarity.org.
Morin, A. Huntly, J. and M. Sfeir. 1984. "Economic Rights and Human Development". Wm. C.
Brown Company.
Mount Holyoke. www.mtholyoke.edu/acad/intrel/mnc.
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New Internationalist:
2000. “Redesigning the Global Economy.” Vol. 320.
1999. “Bananas: The Big Banana Split.” Vol 317.
1998. “Jeans: The Big Stitch Up.” Vol. 302.
1998. “The Cocoa Chain.” Vol. 304.
1995. “Coffee: Spilling the Beans.” Vol. 271.
Ranson, David. 2000. No-Nonsense Guide to Fair Trade. New Internationalist Magazine.
Sens, Allen, and Peter Stoett. 1998. “Global Politics: Origins, Currents, Directions.” Toronto:
International Thomson Publishing.
Statistics Canada. 1998.
“Imports, Imports by Commodity”
“The Coffee Association of Canada”
“International Cocoa Organization”
Statistics Canada. 1999. “Clothing Imports by Value”.
Structural Adjustment Programs. 1998. Foreign Policy In Focus, Volume 3, No. 3, April 1998
www.foreign-policy-infocus.org/briefs/vol3/v3n3sap_body.html.
Ten Days for Global Justice. 1999.
TransFair Canada. www.transfair.ca
UNITE. www.uniteunion.org.
University of Ottawa Anti-FTAA Organizing Committee.
www.uottawa.ca/gsaed/anti-ftaa/facts.html
Wages, Benefits, Poverty Line and meeting Workers need in the Apparel and Footwear
Industries of Selected Countries, U.S. Dept. of Labour, Feb. 2000
The World Bank. www.worldbank.org.
The World Trade Organization. www.wto.org.
Zmag. http://www.zmag.org/ZMag/articles/jan2000albert.htm#WTO
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APPENDIX 1: IMF FACT SHEET
International Monetary Fund (IMF)
WHEN: Founded in 1944, part of the same conference held at Bretton Woods that saw the
creation of the World Bank
WHAT: The IMF promotes trade and development, and provides short-term loans to countries
experiencing temporary problems with their balance of payments.
WHY: Originally the IMF was established to help countries rebuild after the Second World War.
War torn countries could receive temporary financial assistance in order to ease the pressure of
their massive foreign debts. It also helped to foster economic growth and high levels of
employment in these same countries. Over the years, however, the IMF has shifted its focus from
war torn European countries to poorer developing countries who also often struggle with high
levels of foreign debt weak economies.
WHO:
The IMF is an international organization of 184 member countries, including Canada.
HOW: In order to borrow money from the IMF countries must agree to certain conditions,
conditions the IMF believes will help strengthen its economy so that the nation will be less reliant
on foreign capital in the future. First, borrowing countries are required to tighten the money supply
in order to raise internal interest rates to whatever heights are needed to stabilize the value of the
local currency. Then countries must increase tax collections and reduce government spending
dramatically and sell off public enterprises to the private sector. Finally, they must remove
restrictions on the inflow and outflow of international capital as well as restrictions on what foreign
businesses and banks are allowed to buy, own, and operate.
WEBSITE:
http://www.imf.org/
OK, BUT: Tight monetary policy and skyrocketing interest rates not only stop productive
investment, stampeding savings into short-run financial investment instead of long-term
productive investment, it keeps many businesses from getting the kind of month-to-month loans
needed to continue even ordinary operations. This fosters unemployment and drops in production
and therefore income. Fiscal austerity—raising taxes and reducing government spending—further
depresses aggregate demand, also leading to reductions in output and increases in
unemployment. Likewise, the benefits accrued by government spending are lost when
governments must cut these budget items. Privatization of public utilities, transport, and banks is
always accompanied by layoffs. Whether productivity and efficiency is improved in the long run
depends on how badly the public enterprises were run in the first place, and if private operation
proves to be an improvement.
REFERENCES:
http://www.zmag.org/ZMag/articles/jan2000albert.htm#WTO
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APPENDIX 2: THE WORLD BANK FACT SHEET
World Bank (The International Bank for Reconstruction and Development)
WHEN: In 1944, as the Second World War was coming to a close.
WHAT: The explicit goal of the World Bank is to reduce poverty by promoting sustainable
economic growth in the world's poorest countries.
WHY: The World Bank was established to help finance the reconstruction of war-torn Europe and
the development of the poorer countries of the world.
WHO: The World Bank is owned by more than 184 member countries (including Canada), who
share voting rights within the organization. The US, for example, controls 17 percent of the votes,
while the 48 nations of sub-Saharan Africa have 5 percent. The U.S. is the largest single
contributor to the bank and, together with the four other largest stockholders, Germany, Japan,
UK and France, appoints its own representative on the Bank executive board. The smaller
stockholders form 'constituencies' to elect the other 19 representatives.
HOW:
The World Bank operates through three affiliates:
•
The International Bank for Reconstruction & Development (IBRD), the original World
Bank, which loans money at market interest rates mainly to middle-income nations.
•
The second affiliate, the International Finance Corporation (IFC) makes loans and equity
investments to privately owned firms. It is run as a semi-autonomous agency, with its own
managing vice president and a separate staff.
•
The International Development Association (IDA), makes concessional (no-interest) loans
to the poorest countries --those with per capita annual incomes of $805 or less -- with
payback periods of up to 40 years. The IBRD and IDA operate as a single agency with
two "checkbooks", sharing a common management, staff, and facilities. They accounted
for 92 percent of the World Bank's total loans in 1993.
WEBSITE:
www.worldbank.org/
OK, BUT: Critics long have said the World Bank (along with the IMF) add to indebtedness by
insisting that borrowing countries implement economic and legislative changes that augment,
rather than ameliorate, poverty. Many scholars and activists contend that the Bank's aggressive
dealings with developing nations, which were often ruled by dictatorial regimes, exacerbated the
developing world's growing debt crisis and devastated local ecologies and indigenous
communities.
REFERENCES:
http://archive.greenpeace.org/~ozone/wbfacts/fact2.html
http://www.globalpolicy.org/socecon/bwi-wto/wbank/2002/0422trends.htm
http://henningcenter.berkeley.edu/gateway/imf.html
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APPENDIX 3: WORLD TRADE ORGANIZATION FACT SHEET
World Trade Organization (WTO)
WHEN: The WTO was created in 1995
WHAT: The WTO is a forum for negotiating international trade agreements. It is also the
monitoring and regulating body for enforcing these agreements. The WTO works to help
producers of goods and services, exporters, and importers conduct their business.
WHY: Prior to 1995 international trade was overseen by an organization known as the General
Agreement on Tariffs and Trade (GATT). At a GATT meeting in Uruguay in 1995 the forum
created the WTO in the hopes that it would be able to better deal with the complexities of
international trade.
WHO:
134 member countries including Canada
HOW: The WTO is a forum through which trade agreements are negotiated between the member
countries. These agreements set the rules by which various goods and services can move and be
traded among participating countries. Once these agreements are signed ratified in parliament,
the member countries are then bound to follow the rules set out in the agreements. Should
disputes arise, they are appealed to a WTO tribunal for settlement.
WEBSITE: www.wto.org
OK, BUT: As the protests in Seattle made clear, the WTO has many critics. Many see the WTO as
an organization that prioritizes trade and commercial considerations over all else. WTO
agreements can often override domestic laws, rules, and regulations designed to further worker,
consumer, environmental, health, safety, human rights, animal protection. Also, the WTO is not
an organization of equals – stronger and richer countries carry more weight in the negotiations
and as a result poorer countries are often pushed in directions they may not want to go.
REFERENCES: http://www.zmag.org/ZMag/articles/jan2000albert.htm#WTO
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APPENDIX 4: STRUCTURAL ADJUSTMENT POLICIES
FACT SHEET
Structural Adjustment Programs (SAPs)
WHEN: .
Structural Adjustment Policies (SAPs) were developed and implemented in the early 1980s to
qualify highly indebted countries for new loans and or for debt rescheduling by both the World
Bank and the International Monetary Fund (IMF). The 1982 debt crisis prompted these
International Financial Institutions (IFIs) to develop SAPs as a means of regaining the confidence
needed to lend financial resources to debt-ridden countries of the South.
WHAT:
The programs in question tend to combine an array of elements, such as: 1) the devaluation of
national currency, to bring down the price of exported goods and attract strong currencies; 2) the
reduction of public expenditure, to streamline administration and increase public savings; 3) the
privatization of public firms; the deregulation of state-controlled industries; and 4) the reduction of
subsidies to certain companies and products, to avoid inflation as a consequence of deflation.
WHY:
The main goal surrounding the enforcement of SAPs is to ensure that developing countries can
service their external debt to developed nations and international financial institutions. Moreover,
SAPs are intended to "move countries away from self-directed models of national development
and toward outward-looking development models that stress the importance of complete
integration in the dominant global structures of trade, finance and production." The neo-liberal
ideology of economic development supports the implementation of SAPs, wherein an unregulated
free market and private sector will promote unrestricted growth, and the benefits of this growth
will trickle-down from the owners of capital to the population as a whole.
OK, BUT:
Those that have implemented or are in the process of implementing SAPs have succeeded in
shrinking government deficits, while eliminating hyperinflation, and maintaining debt-payment
schedules. However, many SAPs have failed to establish a base for sustainable, balanced
economic development, and have left many local industries bankrupt due to privatization.
Moreover, SAPs increase local dependency on food imports, social services and have increased
income disparities in developing nations.
WEBSITES:
www.worldbank.org
www.imf.org
REFERENCES:
Structural Adjustment Programs, Foreign Policy In Focus, Volume 3, No. 3, April 1998
www.foreign-policy-infocus.org/briefs/vol3/v3n3sap_body.html
IMF/World Bank: SAPs, www.users.skynet.be/cadtm/pages/english/infwb.htm
The Ecumenical Coalition for Social Justice: SAPs www.ecej.org/saps%20briefing.htm
IMF Stabilization Policies and Structural Adjustment Measures, The Central Bank of Zambia
www.bized.ac.uk/virtual/dc/trade/bank/issue4.htm
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APPENDIX 5: FTAA FACT SHEET
Free Trade Area of the Americas (FTAA)
WHEN:
According to its official website, the FTAA negotiations began at the Summit of the Americas in
1994, wherein representatives from 34 democracies of the Western Hemisphere agreed to
gradually eliminate barriers to trade and investment. The leaders agreed that the FTAA
negotiation process would be complete by 2005, and that at that time the accord's provisions
would gradually be implemented.
WHAT:
Based on the North American Free Trade Agreement (NAFTA) model, the FTAA will create a
hemispheric trading bloc, including all countries in North America and South America, with the
exception of Cuba. The tentative accord, which will come into effect in 2005, could possibly be
the most far-reaching trade agreement in history. Although it is based on NAFTA, the FTAA will
go far beyond its scope and power.
WHY:
According to the Miami Summit of the Americas Plan of Action, set forth in 1994, the
implementation of the FTAA will achieve several overarching goals: the preservation of
democracies in the Western Hemisphere; the promotion of prosperity through economic
integration; the eradication of poverty and discrimination in the Americas; and the promotion of
sustainable development.
HOW:
FTAA will introduce all the disciplines of the proposed service agreement of the World Trade
Organizations (WTO) -- the General Agreement on Trade and Services (GATS) -- with the
powers of the Multilateral Agreement on Investment (MAI). The former component is mandated to
liberalize the global trade in services, and gradually eliminate all government barriers to trade to
accommodate international competition. The investment component will provide corporate entities
with protection to pursue trade interests through legally binding trade tribunals.
WEBSITE:
http://www.ftaa-alca.org, http://www.oas.org
OK, BUT:
A number of contentious issues have arisen, following the development of FTAA guidelines, such
as its impact on worker's rights, health, and the environment. Many environmentalists and civil
society groups believe that the FTAA model encourages a "race to the bottom," meaning that the
country with the lowest wages and the weakest environmental protection standards will attract the
most investment. Moreover, the proposed agreement's investment clause will allow private
corporations to sue foreign governments for compensation if their investments have been harmed
due to government regulations and safeguards. Similarly, many that oppose the FTAA claim that
the accord will provide unequalled power to transnational corporations of the hemisphere to
compete for and even challenge government-funded services, including health care, education,
social security, culture and environmental protection. In essence, this shift in service providers
may potentially remove the state's ability to adequately protect the health and safety of its
citizens. Furthermore, many of the negotiations regarding the trade agreement have taken place
in secrecy, and numerous civil society and special interest groups have been excluded from past
FTAA deliberations.
REFERENCES:
FTAA Official Website: Overview of FTAA Process www.ftaa-alca.org/View_e.asp
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www.ilwu19.com/history/wto/ftaa/facts.htm; University of Ottawa Anti-FTAA Organizing Committee
www.uottawa.ca/gsaed/anti-ftaa/facts.html; Environmental Media Services: FTAA Fast Facts
www.ems.org/ftaa/facts.html
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APPENDIX 6: MULTI-NATIONAL CORPORATION FACT SHEET
Multinational Corporations (MNCs)
What & Why:
Simply put, MNCs are “profit-seeking enterprises with operations in at least two states” (Sens &
Stoett, 498).
There is much debate over the role of MNCs in the global economy:
Some people regard MNCs as benign actors - focused on pleasing their shareholders, driven by
the pursuit of profit, and contributing to efficient development, production and distribution of goods
and services across the globe. Others express concern because MNCs are such powerful actors
in terms of today’s global economy and politics. A key illustration of this is the role that
International Telephone and Telegraph (ITT) played in the overthrow of the Allende government
in Chile in 1973 (Sens & Stoett, 143). Some regard MNCs as exploiters, profiting by taking
advantage of the cheap labour and raw materials found in developing countries. Others still, point
out that developed countries are losing out too, as MNCs are rediverting jobs towards developing
countries.
The Debate over MNCs:
Do They Exploit Less Developed Countries (LDCs)? (Sens & Stoett, 144)
YES
NO
1. MNCs decapitalize LDCs. MNCs take more
money in profit out of LDCs than they invest.
2. MNCs are obstacles to social progress. The
profit motive makes MNCs unresponsive or
opposed to progressive political change.
3. MNCs contribute to inequality. MNCs create an
elite socioeconomic class in LDCs, isolated from
the poor majority.
4. MNCs discourage indigenous development.
They oppose efforts by LDCs to industrialize, as
this would create domestic competition.
5. MNCs create dependence. LDC economies
come to depend on MNCs for investment,
technology, and markets.
6. MNCs use LDCs as sources of raw materials.
MNCs extract raw materials for a low price,
manufacture products abroad, forcing LDCs to
purchase expensive finished products.
1. MNCs provide investment. MNCs invest a lot of
their own money and attract foreign investors as well.
2. MNCs support peaceful domestic environments.
MNCs require peace to operate effectively, and
therefore have an interest in long-term stability.
3. MNCs create jobs. They have an interest in a
capable workforce and provide training and
education.
4. MNCs promote development. MNCs help create
modern infrastructure, share technology and
technique, and therefore create conditions conducive
to domestic growth.
5. MNCs increase fiscal resources of LDCs. MNCs
create royalties and tax revenues for LDCs.
6. MNCs give LDCs access to world markets. They
provide a channel to markets for products as well as
markets for purchase, enabling LDCs to access the
global marketplace.
Who: There are about 37 000 MNCs worldwide. Associated with these are approximately 170
000 affiliates or subsidiaries (Sens & Stoett, 143). Examples of MNCs include: Pepsico,
Mitsubishi, General Motors, Exxon, Nike, etc.
How: Typically, MNCs will have their headquarters or base of operations in one country - usually
a developed country, like the United States, where they can make use of developed
infrastructures, free access to capital, an educated and sophisticated workforce, and technology.
Meanwhile, the MNC will own or operate other corporations/subsidiaries in other countries. Some
MNCs engage in joint ventures: “the sharing of ownership of a subsidiary with another MNC, or
with the host government, because of legal requirements or to reduce risk” (Sens & Stoett, 142).
MNCs can also choose not to invest directly in other countries. Instead, they utilize licensing
agreements with foreign companies/ governments - enabling them to produce the MNC’s product
for a fee and a percentage of the profits generated. In an attempt to avoid government
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interference, many MNCs are engaging in interfirm alliances - a mixture of sub-contracting,
partial mergers, and interfirm agreements.
References:
Peter S. Goodman, "Reebok, Nike, and Levi Strauss on the Prowl for Cheap Labor in Indonesia,"
The Progressive, June 26,1993.
Sens, Allen, and Peter Stoett. Global Politics: Origins, Currents, Directions. Toronto: International
Thomson Publishing, 1998.
Website:
Http://www.mtholyoke.edu/acad/intrel/mnc.htm ----- an excellent source for related articles
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