Social
Sciences
GEOGRAPHY Teacher's Guide • Grade 6 Term 2
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Lesson plan: Trade
Knowledge
Skills
Trade as the exchange of goods; Understand why people trade
and what people trade;
Trade as buying and selling of
goods for money;
Understand import and
export;
Exports and imports between
South Africa and the world;
Write an essay;
Raw materials (primary
products); Manufactured goods
(secondary products);
Create a PowerPoint
presentation;
Skills and services;
Create a mind map;
Resources and their values;
Research;
Concepts of ‘unfair trade’ and
‘fair trade’.
Perform a case study and
flow diagram.
• Was it difficult to find someone who wanted their item?
• Was it a ‘fair’ exchange?
Values
Understand the concepts
and value of trade;
Understand the
importance and values of
fair and unfair trade.
Write a paragraph;
Resources:
Learner’s Book, daily goods for practical exchange activities, tables and graphs for data handling
activities, dictionaries, Internet, reference books, pictures.
In this module you will:
• Would it have been better using money to exchange items? Why?
Explain that goods or services people want have a universal money value and money is
considered an even exchange. When people barter, they have to find someone who wants
their goods or services and agree that the goods and services traded were fair and even.
Import and Export
The term ‘export’ originates from the Latin words ex and portare, meaning to ‘carry out’.
A country’s international trade involves importing and exporting goods and services. The
difference between the amount exported and the amount imported equals the balance of
trade. When one refers to a ‘trade surplus’ it means the country has exported more goods than
imported. The term ‘trade deficit’ means a country has imported more goods than exported.
Thus, one can say that a healthy economy is one where both exports and imports are growing.
This signifies economic strength and a balanced trade surplus or deficit.
If exports are on the rise and imports are slowing down, it could mean the rest of the world is
better off than the domestic economy. On the other hand, if exports suddenly decrease and
imports increase sharply, this could suggest that the domestic economy is doing better than
overseas markets.
Imports and exports have a direct influence on the consumer and the economy. The domestic
currency level is one of the biggest factors of a nation’s economic performance.
• Understand resources and their values
Resources and their values:
Ask the learner’s if they understand what is meant by a country’s ‘resources’. Discuss what
makes something a natural resource and describe the categories of natural resources. (These
are materials that occur in nature such as water, air, land, forests, fish and wildlife, topsoil, oil,
gas and minerals).
• Understand fair trading
Resources can be classified as renewable or non-renewable.
• Understand why people trade
• What people trade
Prior knowledge:
Trade:
Ask the learners if they understand the meaning of “trade”. Discuss different types of trade.
Explain that people trade with each other both within a country and across the world. Ask the
learners if they have ever checked the labels of their clothing and other goods to see where
they come from. Write some possibilities on the board. Ask if they ever think about the people
who make the products? If so, what sort of life do they think they have?
Bartering Activity
Before starting the lesson, ask the learners to write one item they could barter on a post it
note (For example: notepad). Read each item and ensure there is no goods/service duplication
in the class.
Place learners in groups of four. Explain that they must barter or trade their listed item with
someone else’s in the group. Explain that bartering means exchanging goods/services
for someone else’s goods/services. This trade happens because each person is giving up
something that the other person wants. The learners in each group will read each other’s item
on the post it note and discuss with each other what item they are interested in trading it for.
After the learners have traded ask the following:
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Explain that natural resources are an important part of society. They provide income, industry,
and identity. A country’s access to natural resources can determine its wealth and status in the
world economic system.
Some natural resources are used for trade purposes as exports. Developed countries need to
import natural resources, and mineral-rich countries are able to supply that demand. Many
resources have immense value in the global market, which allows developing countries who
have these resources to become active participants in the international economic system.
Explain that natural resources cannot be taken for granted. For example, people walk several
hours a day just to find water; and some experts are predicting that the world’s supply of oil
will run out in the not too distant future.
Fair trade:
Ask the learners if they understand the meaning of ‘fair trade’. Fair trade means getting a fair
deal for producers in developing countries, which helps support community development.
Farmers in developing countries are often at the mercy of middlemen who are able to pay
them a low price for their produce because there is nowhere else for them to sell it. Through
co-operatives and associations they are now able to access international markets and receive
a fair price. Fairtrade is about finding a way for everyone who trades to benefit.
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Trade
Trade is the voluntary exchange of goods and services by people. It is the exchange of one
thing for another. Trading has been around for centuries. ‘Voluntary’ trade means that people
make a decision to exchange goods or services without being forced to do so and of ‘their own
free will’. People trade in order to benefit from it. When people believe they can no longer reap
the benefits of trading, then trading comes to an end. Economically, people judge their trade
success by weighing the benefits of the purchase against the costs of their trade.
Long ago, people exchanged goods amongst east other for new and interesting commodities
in a barter system without using money. They traded raw materials as well as manufactured
materials. Some examples were spices, gold and silk.
Trade would not exist if humans had equal qualities because each person would have the
same needs and circumstances. It is because humans are unequal with different needs and
circumstances that trade happens. Trade is inclined to reduce inequality and to ease the
consequences of the different circumstances in which humans live.
In this module you will:
retail trade. Wholesale trade involves buying in large quantities from producers or manufacturers
and selling to retailers. A wholesaler is the middle man between the manufacturer and retailer.
Retail trade involves buying from wholesalers to sell to consumers. A retailer is the last link in
the chain of distribution.
Buying and selling between two or more countries is called ‘International, Foreign Trade’.
International Trade is the exchange of capital goods and services across geographical/
international borders. International trade represents a major share of a country’s GDP (Gross
Domestic Product) and can be sub-divided into three categories:
• Export Trade: Sale of goods and service from home country to a foreign country; when a trader sells his goods to a trader in another country. For example: a trader from South Africa sells his goods to a trader in China.
• Import Trade: Purchase of goods and service from a foreign country to home country; when a trader buys goods from a trader in another country. For example: a trader from South Africa buys goods from a trader in England.
•
• Understand why people trade
• What people trade
• Understand resources and their values
• Understand fair trading
People trade with each other to find goods or services which they want and which they cannot
produce or get for themselves. Trade is one of the four ways generally accepted as lawful, that
people can purchase goods; the other three being producing it personally, by receiving a gift
and by inheritance.
Entrepot Trade: This is when goods are imported from one country to home country, processed and then re-exported to another country. For example: an Indian trader (from India) imports spare parts from a Chinese trader (from China), then converts them into finished goods and then exports the spare parts to an American trader (in USA).
Activity 1: Reasons for Import and Export
List the reasons in your class workbook, why a country would import goods or services and
export goods or services.
Reasons for Importing
Why people trade
Reasons for Exporting
Total: (10)
Trade is made for the mutual benefit of
parties. The outcome of a trade is that
everyone involved is better off. Most
economists accept that trade is the seal
of prosperity.
Activity 2: Essay
Trade as buying and selling goods for money
Money has made trading much simpler and effective compared to earlier practices of bartering.
Trade can be described as a financial transaction or ‘barter’. A network that allows trade is called
a ‘market’. Modern traders generally trade with money by buying, selling or earning. Money can
be credit, paper and non-physical money. Trade between two buyers is called ‘bilateral trade’,
while trade between more than two buyers is called ‘multilateral’ trade.
Internal trade is trade that is conducted within a country. It is the involvement of wholesale and
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Write an essay of no more than 200 words explaining how trade has changed from the early
1800s until now.
Total (20)
Foreign trade
Since the end of apartheid, foreign trade in South Africa has increased. International trading
partners of South Africa include other African Countries, the European Union, United States,
China and Japan. Exports are mainly mining and agriculture , fore example maize, diamonds,
fruit, gold, metals, minerals, sugar, and wool. Imports include transportation equipment and
machinery, chemicals, manufactured goods and petroleum.
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Activity 3: Trade
Activity 5: PowerPoint Presentation
Read the questions and write the answers in your class workbook.
Create a PowerPoint Presentation highlighting South Africa’s top 5 imports (measured in
gross expenditure) and top 5 exports (measured in gross income). Include the top 5 export
destinations and the top 5 countries from which South Africa imports products.
1. Import trade means the___________________of goods from one country to another.
2. Entrepot means the _________________________of goods.
Total: (20)
3. Foreign trade is also referred to ________________________trade.
4. Voluntary trade means ______________________________________.
Skills
5. The name referred to as a network that allows trade. ____________________
6. Trade between two buyers is called _________________________________.
7. What are the three categories of international trade called? ________________________.
8. Write the full meaning of GDP ________________________________________.
Productive: using skill is productive of value.
Expandable: skills are enhanced by training and development.
9. Name the system that was used for trading long ago _______________________.
Social: skills are socially determined.
10.Why do people trade? _______________________________________________.
A skill is defined as the ability, using knowledge, practise and aptitude to do something well.
Skills have three key features:
Total: (10)
What people trade
Raw materials are the primary products or basic materials from which a product is made
and sold. Raw materials are ‘factors’ of production along with labour and capital and are very
important to the production process. A country that has lots of natural resources does not need
to import many raw materials and has the opportunity to export their raw materials to other
countries. Raw materials are often natural resources such as oil, iron and wood. Before being
used in the manufacturing process, raw materials are often changed to be used in different
processes. Raw materials are also referred to as ‘commodities’, which are bought and sold on
commodities exchanges around the world. ‘Manufactured goods’ are goods that have been
processed and are the ‘secondary’ product to the ‘primary’ (raw material) product.
tradestats.thedti.gov.za
Services
A service is the process of providing customer satisfaction with a product or service. This can be
done in the form of direct or indirect contact. Service is fundamental to service management.
Service allows both the customer and the service provider what to and what not to expect from
a service. Services that are clearly defined, help customers to understand the service offering,
including what the service provides, includes, eligibility, limitations, costs, requests and how
to get assistance. A well-defined service also identifies internal processes necessary to provide
and support the service.
Activity: 6a Good Service and Bad Service
Look at the list of words below and tabulate in your class workbook, which words suggest
good service and which words suggest bad service. Add five more descriptive words for each
service.
Activity 4: Raw materials
Look at the examples of raw materials below. List two secondary products each raw material
can be processed/manufactured into. Record your answers in your class workbook.
sincere
reluctant
distant
inconsiderate
indifferent
cold
surly
understanding
helpful
positive
abrupt
polite Total: (10)
smart
welcoming
rude
Activity 6b: Paragraph writing
1.
Wood2.
Crude oil
3.
Gold4.
Glass
Write a colourful paragraph in your class workbook explaining the reasons why is it important
to an organisation that its customer’s return and / or speak positively about their experience.
5.
Iron
Total: (10)
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Total: (20)
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were first tasted by the French after the royal marriage of King Louis XIII to the Spanish Princess
Anne of Austria in 1615.
Activity 7: Mind Map
Create a mind map in your class workbook using the topics below to expand on the
information provided. The mind map should include other key words, associations, images,
symbols or codes to make it visually interesting and informative.
My skills
My values
My Interests
My Strengths
Possibilities
Total: (20)
Resources and their value
Natural resources such as oil, gas, minerals, metals and timber can contribute to job creation,
government revenues and long-term economic growth for a country. Use of these resources
determine their importance to a country as well as the supply. If there is a small supply of a
resource, it is given a greater value. The value of a resource can also change over time. For
example, before the development of nuclear energy, uranium had few uses. Today it has more
value as it is needed for the process of nuclear fission. The natural distribution of resources
greatly influences how countries relate to one another. Countries trade with each other in order
to get the resources they need.
Chocolate developed quickly across Europe and around the world. Spain, the first exporter of
chocolate, opened the first chocolate factory in 1780, followed shortly thereafter by Germany
and Switzerland. The cacao tree was introduced into West Africa by the Europeans and a new
cocoa empire emerged on African soil. New chocolate products were made as it became more
popular, including chocolate with dried fruits, liqueurs, nuts, spreads, frostings, pastes, and
many others.
DID YOU KNOW?
The cocoa bean was commonly used as a currency throughout Mesoamerica;
Cocoa powder was originally produced by the Dutch in 1828;
The chocolate bar originated in Great Britain in 1830;
Activity 8: Research and oral presentation
In 1830, Daniel Peter and Henri Nestlé from Switzerland, developed milk chocolate and
during the same period, Rodolphe Lindt developed the chocolate fondant (fondue).
Choose one of the energy resources below and research its economic value and
environmental impact. Use this research to present an oral to the class.
In 1847 in England, solid chocolate is offered to the general public for the first time by the
English company Fry and Sons;
Coal, oil, gas, hydro-power, nuclear power.
In 1650, chocolate beverages appeared in England at the same time that tea arrived from
China and coffee from the Middle East. The consumption of the drink was only a privilege for
the upper classes and for soldiers during battle. In 1659 the first chocolate-confection maker
opened in Paris. In 1720, Italian chocolate-makers received prizes in recognition of the quality
of their products.
Total: (20)
The origin of chocolate
Europeans brought the first cocoa trees to Africa;
The cacao plant was given its botanical name by Swedish natural scientist Carl Linnaeus,
who called it “Theobroma” cacao meaning “food of the gods”;
Since the start of the 20th century, Africa has become the biggest cocoa producer;
Chocolate has changed from a delicacy reserved only for royals, to a widely available treat
for many!
Historians believe that the Olmec (1500400 BC) were the first humans to eat
chocolate by crushing cocoa beans (also
known as cacao) and mixing them with
water and spices to drink.
Activity 9: Case Study
Ghana has been a massive producer of cocoa beans for the world market and this has been
the backbone of Ghana’s economy for a long time. Research the factors that affect cocoa
farmers in Ghana. It was in 1502 when Columbus
discovered cocoa beans during a
stopover in Nicaragua. The true value
of the cocoa bean was not known until
Hernan Cortés drank it with the Aztec
emperor. Until then, its ultimate worth
was not yet recognised.
From cocoa to chocolate
After the collapse of the Aztec civilization, Cortés grew a profitable trade with Spain.
The first shipment of cocoa beans arrived on the Iberian Peninsula from New Spain in 1585,
which started the trading of cocoa and the founding of the first chocolate shops. During the
17th century, cocoa began arriving in other ports throughout Europe. Chocolate beverages
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Total: (10)
Cocoa is grown in plantations in West Africa, Asia and South and Central America with the
largest producing countries being Ghana, Indonesia and the Ivory Coast. Africa is the biggest
cocoa supplier providing 75% of the world’s crop. For many, cocoa cultivation represents an
important source of income.
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The cocoa bean comes from the
fatty bean of Theobroma Cacao tree,
where cocoa solids and cocoa butter
is extracted to form the chocolate
base. The cocoa tree starts to bear
fruit when it is 3-4 years old and
bears two harvests per year. Very few
flowers are fertilized and developed
into cocoa pods. Each tree yields
approximately 20-30 pods a year
and a cocoa pod normally contains
between 20-40 seeds.
After approximately six months when the cocoa pods are fully grown, they are then harvested.
The pods are collected in baskets and the seeds removed from the pods and left to ferment and
dry. Fermentation is important as this process naturally removes any fruit pulp that sticks to the
beans.
After drying, the beans are graded.
The manufacturing process:
The cocoa beans are cleaned and removed of any stones and sand leaving only the kernel
behind;
The cocoa nibs are roasted and put into grinders to be ground coarsely;
They are then ground to fine cocoa liquor using heat to melt the cocoa butter present in the
liquor;
This now becomes a liquid when the liquor melts and the cocoa liquor is now ready to use as
an ingredient of chocolate;
takes a remarkable transformation once
it has been mined, to reaching the hands
of the consumer as jewellery. During
this transformation, it is changed from
unprocessed ore, to a valuable metal
which is recognised for its intrinsic value
and cultural significance. Over the last
decade, the value of gold has increased
massively.
The supply chain for gold has four distinct
phases: mining, extraction & refining,
manufacturing and retailing. As pure gold
is soft, it is usually mixed with alloys to make it harder for the jewellery making process.
China is at present, the fastest-growing market for gold jewellery in the world but the United
States is one of the world’s most significant consumer markets. South Africa is the world’s 5th
largest producer of gold. Gold mining in South Africa has been the biggest driving force behind
the country’s participation in the global economy.
Activity 10: Flow Diagram
Gold to Jewellery process
Research and create a flow diagram that explains the process form “ore to store” .
Total: (10)
Activity 11: Case Study
It can also be processed into cocoa powder and cocoa butter.
What are the raw materials used to make chocolate?
Compile a case study on one operating mine in South Africa. Research the estimated value
of gold it produces as well as the impacts of mining on the environment.
Cocoa liquor, cocoa butter, sugar, powdered milk and vanilla
are the raw materials which make all the different types of
chocolate;
Dark chocolate is made with cocoa liquor, cocoa butter and
sugar;
Total: (30)
Concepts of fair and unfair trade
Milk chocolate is made by adding milk powder;
White chocolate does not include cocoa liquor;
Vanilla is added to all types of chocolate to enhance the taste.
Fair trade is an approach to business and development to support the practice of fair trade and
transparency during international trade.
From gold to jewellery
By the time of recorded history, gold was considered sacred and a symbol of wealth and social
rank and since then, its relationship with human society has grown. Gold mining remains a key
global industry as gold is a backbone of economies worldwide.
Gold is malleable (soft) which makes it easy to work with and it is resistant to corrosion. It
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It is a system that supports fair labour practice in developing countries who lack economic
opportunity and markets in which to sell their goods. It is an open, supportive and profound
association between buyers and sellers that ensures the principles of fair trade remains at the fore.
Unfair trade policies prolong inequality. The term ‘Unfair Trade Practice’ broadly refers to any
deceptive or corrupt trade practice of products or services and includes unfair competition,
false advertising, misleading information, fraud, prejudice and criticism.
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In South Africa, the Consumer Affairs (Unfair Business Practices) Act, 1988 defines “unfair
business practice” to mean any business practice which, directly or indirectly, has or is likely to
have the effect of:
• Harming the relations between businesses and consumers;
• Unreasonably prejudicing any consumer;
• Deceiving any consumer;
• Unfairly affecting any consumer.
Activity 12: Case Study
Read the story and answer the questions that follow in your class workbook.
Jacob earns a living by growing and harvesting cocoa beans on his smallholding. It is hard
work because cocoa trees only bear two harvests a year. He only manages to collect 100kg of
beans after each harvest, which he sells to the trading company once they have dried. Jacob
earns R100.00 for each 100kg he sells. This money has to last him 6 months until he can sell
the next harvest. Jacob has to feed his family with this money as he is the only breadwinner.
The trader then sells Jacobs harvest to the producer for R1000.00, making a massive profit
out of trading.
What is ‘unfair ‘ about this story? Validate your answer with facts about unfair trade. (4)
Design a ‘fair trade’ logo for South African products in recognition of fair trade. (6)
Total: (10)
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Memos
Activity 3: Trade
1.
2.
3.
4.
Activity 1: Reasons for import and export
Reasons for importing
Goods or services that are essential to the economic wellbeing of the country;
Goods not available in the domestic market;
Goods or services that are produced inexpensively by other countries and sold for a lower
price in home country;
Trade embargoes;
Purchase
Re-Export
International
People make a decision to exchange goods or services without being forced to do so
and of ‘their own free will’.
5. Market
6. Bilateral Trade
7. Export, Import, Entrepot
8. Gross Domestic Product
9. Bartering
10.People trade with each other to find goods or services which they want and which
they cannot produce or get for themselves.
Total: (10)
Government policies.
Activity: 4 Raw Materials
Reasons for Exporting:
Examples:
Abundance of natural resources;
Wood – paper; furniture; musical instruments; flooring; toys; mulch; bedding etc
Cheap labour allows for goods to be manufactured cheaply and exported;
Crude Oil – fuel; jet fuel; gas oil; butane
Gold – jewellery; electronics; computers; dentistry; aerospace; medals etc..
Production of superior quality goods;
Glass – packaging, housing and building, appliances, electronics, automotive and transport,
medical technology; tableware and so forth.
Companies can establish their presence in economies outside their home country
Companies can maximize profits by exploiting opportunities in foreign markets that are
not available in domestic markets;
Government policies.
Iron – tools, weapons, roofing, motor vehicles, building structures, steel
production, wire industries, metal extraction and so forth.
Total: (10)
Total: (10)
Activity 5: PowerPoint Presentation
Imported products are: Motor vehicle parts & assembled motor vehicles; refined petroleum
products; consumer electronics; computer hardware and office equipment. The top 5
countries from which South Africa imports are: China; Germany, the US; Japan and India.
Activity 2: Essay (20)
Write an essay of no more than 200 words explaining how trade has changed from the early
1800s until now.
Points to consider:
Change in bartering systems (from silk, gold, spices etc….to monetary system) markets,
services, products, technology shift, infrastructure; operation and management;
transportation and communication, trade partners, trade has increased by the integration of
rapidly growing emerging market economies (EMEs); growth of regional trade; technology
exports.
Exported products are: Iron and steel; assembled motor vehicles; precious and non-ferrous
metals; chemicals; refined petroleum products. The country’s top five export destinations
include: United States; Germany; Japan; Zimbabwe; and China.
Marking outline:
Outline = 2
Slide structure = 2
Research & knowledge of subject = 7
Presentation = 3
Graphic evidence = 2
Spelling and Grammar = 3
Conclusion = 1
Total: (20)
Total: (20)
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Activity: 6a Good Service and Bad Service
Activity 8: Research and oral presentation
Mark accordingly, using the examples below as a guideline.
Coal, oil, gas, hydropower, nuclear power.
Good service
Mark as follows:
Bad service
Preparation = 5
Visual Aids = 4
Delivery = 8
Evaluation = 3
FriendlyHostile
PleasantTactless
AttentivePatronising
Assess as per the rubric Total: (20)
EfficientHesitant
4
AccommodatingIneffective
CaringRude
Presentation
RespectfulDisinterested
InterestedUntidy
CourteousUnkempt
EagerDirty
Content
InformativeCareless
ThankfulSubstandard
EnthusiasticInterrupting
Knowledgeable
Total: (10)
2
1
Learner presents
with key cards. Uses
cards only briefly.
Expressive and holds
audience attention.
Learner presents with
key cards – more
reliant on looking
at cards. Uses
expression.
Learner reads parts
of speech. Little
audience contact is
evident.
Whole speech is read.
Monotone and no
eye contact.
Includes information
on all required
aspects of the
speech. Information
is detailed and
accurate.
Includes brief
information on all
required aspects of
speech.
Some of the required
information is not
present. Some
inaccuracies.
Not enough
information given.
Speech is too short
and lacked detail.
Learner speaks
Pronunciation is
mostly correct.
Good sentence
construction and
evidence of varied
vocabulary.
Pronunciation
errors. Repetitive
vocabulary.
Grammatical errors.
Speech does not flow.
Many pronunciation
and grammatical
errors.
Pronunciation fluently. Uses
excellent sentence
and
language construction and
varied vocabulary.
Activity 6b: Paragraph writing
Points to consider for marking:
3
Activity 9: Case Study
Unity (2)
Factors information for marking:
Order (5)
Government policies
Coherence (5)
Exchange rates
Completeness (8)
Labour disputes
Total: (20)
Water shortages
Climate change
Activity 7: Mind Map (20)
Disease
Mark as follows:
Pests
Education
Mind map header information = 12
Recession
Layout= 8
Competition
Total: (20)
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Inflation
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Total: (10)
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Activity 10: Flow Diagram (10)
Activity 12: Case Study
Gold to Jewellery process (presented as a flow diagram)
What is ‘unfair’ in the story? Validate your answer with facts about unfair trade.
GOLD MINE (ORE)
The trader sells the harvest 10 times more than what it was sold to him for, by trading
the goods and hardly doing any work. Jacob has worked the hardest to produce a crop
with very little return. This is UNFAIR and does not give Jacob the freedom to pursue a
livelihood that he can compete with in the marketplace which is essential to any free
enterprise system.
REMOVING ORE
TRANSPORTING ORE TO TREATMENT PLANTS
Design a ‘fair trade’ logo for South African products in recognition of fair trade.
PROCESSING
Consider the following when marking:
Logo: Points for message (2), design (2), understanding (2)
REFINING
Total: (10)
TRANSPORT TO MANUFACTURER
GOLD MIXED WITH METALS
DESIGNERS
FILING
CASTING
PLATING
FINAL JEWELLERY PRODUCT
Source: www.anglogold.co.zaTotal: (10)
Activity 11: Case Study
Environmental impacts of mining:
Ecosystems
Fauna and Flora
Health Impacts
Pollution
Environmental contaminants
Total: (30)
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