Option Topic 4 Global links

S A M P L E P R O G R A M

Based on the new Commerce Course for New South Wales

Option Topic 4: Global links

Using page references and examples from

New Concepts in Commerce

S. Chapman, M. Freak

Prepared by S. Chapman

Sample Work Program: New Concepts in Commerce (Option Topics) Chapman & Freak: John Wiley (Jacaranda) Page

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Option 4 Global links

Timing: 15-25 indicative hours

Focus: Students learn about the effect of globalisation on our commercial and legal environment and assess the impact on the individual, the economy and society

Syllabus outcomes

A student:

5.2 analyses the rights and responsibilities of individuals in a range of consumer, financial, business, legal and employment contexts

5.4 analyses key factors affecting commercial and legal decisions

5.5 evaluates options for solving commercial and legal problems and issues

5.7 researches and assesses commercial and legal information using a variety of sources

5.8 explains commercial and legal information using a variety of forms

5.9 works independently and collaboratively to meet individual and collective goals within specified timelines.

Resources: New Concepts in Commerce, Chapman & Freak: John Wiley


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Option Topic 4 Global links

Students learn about:

The global consumer

 sourcing products internationally

 trends towards a global market

 the relationship between domestic and international trade

(Spread 8.1)

Students learn to:

 use the Internet to investigate the process of purchasing a product from overseas

 identify a range of products that are imported and exported

 describe trends towards a global market

 discuss the influences of globalisation and the interrelationship between domestic and international trade

Teaching/Learning Activities

Read ‘here is what happened in the ‘average’ Australian household this morning’ on page 186.

Have students recount their own purchases from overseas using online shopping. Display on a map the countries from which the purchases were made and the frequency. Analyse any trends.

Examine the illustration on page 186. Discuss the meaning of

(a) global interdependence

(b) globalisation.

Have students prepare a database of ten products they regularly use. The fields for the database include:

(a) product

(b) brand name

(c) manufacturer’s name

(d) country of origin.

Compare individual lists and compile a class database. Discuss the trends.

Brainstorm how information communication technology has changed existing consumer shopping practices.

Debate the following statement: ‘Globalisation is good for all Australian’.


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The global consumer (cont.)

 sourcing products internationally

 trends towards a global market

 the relationship between domestic and international trade

(Spread 8.1)


 use the Internet to investigate the process of purchasing a product from overseas

 identify a range of products that are imported and exported

 describe trends towards a global market

 discuss the influences of globalisation and the interrelationship between domestic and international trade


Use www.jaconline.com.au to access the Amazon website. Have students identify:

(a) the features that make the site secure

(b) the refund, return or exchange policy.

Read and discuss the globalisation Com Facts shown on page 187. Have students investigate the advantages and disadvantages of globalisation.

Excellent resources can be found in:

(a) GeoActive 2, 2 nd ed. spread 10.5 pages 252-53

(b) New Internationalist – www.newint.org

(c) Austrade students centre – www.austrade.gov.au

Distinguish between and provide examples for:

(a) globalisation of production

(b) globalisation of markets

Case study. Examine the production and distribution of Nike, Coca-Cola,

Billabong or Sony products.

-

Complete worksheet 8.1 ‘Globalisation ezine’.


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The global consumer (cont)

 Australia’s major items of trade and main trading partners

 Australia’s changing trade patterns

(Spread 8.2)


 investigate and communicate the major trading patterns and items of trade

 describe the changes in trade patterns


Divide the class into six major trading regions each specialising in a number of specific products. Allow the opportunity for ‘bartering’ to occur. Examine the advantages of trade. Discuss why Australia needs to trade with the rest of the world.

Extension activity. Introduce students to the principle of absolute advantage (Adam Smith) and comparative advantage (David Ricardo).

Explain the difference between imports and exports.

What does Australia export/import? Examine the tables shown on page

188. Construct a bar graph to represent Australia’s:

(a) export

(b) import of goods and services.

-

Create a collage showing Australia’s main export items.

Group work. Design either a 60-second commercial or a three-minute

PowerPoint presentation for the Tourism Council of Australia, publicising the importance of tourism to the Australian economy.

Have students make generalisations about Australia’s composition of trade. Display the generalisations under the heading ‘exports’ and

‘imports’.

Have students predict who they think were Australia’s main customers and suppliers during the beginning of the 20 th century. (Direction of trade).

Read the section on page 189 to evaluate their predictions.


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The global consumer (cont)

 Australia’s major items of trade and main trading partners

 Australia’s changing trade patterns

(Spread 8.2)


 investigate and communicate the major trading patterns and items of trade

 describe the changes in trade patterns


Have students predict who they think are Australia’s current main customers and suppliers.

Examine the graphs on page 189 to evaluate their predictions.

Locate the countries/regions on a map of the world. Examine any patterns that are evident.

Extension activity. Introduce the concept of a trading bloc. Discuss the reasons why countries join trading blocs such as NAFTA, EU, ASEAN and CER.

Read the Com Fact on page 189. Have students record one product they have recently purchased that was produced in China. Complete a class tally of the products. What generalisations can be made about the composition of the products?

Have students predict the direction of trade in the year 2050. Present the information as a newspaper article.

-

Complete worksheet 8.2 ‘Who are Australia’s main customers’.

Complete worksheet 8.3 ‘Changes in trade patterns – services trade’.


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The global investor

 investing money in the global financial market

international shares

interest-earning investments

managed funds

(Spread 8.3)


 describe the trends in the growth of international financial flows over the last decade

 identify opportunities for investing money internationally

 compare the advantages and disadvantages of investing money internationally compared with domestic investment


Provide advertisements for a range of financial services companies such as Deutsche bank, Citibank and Goldman Sachs. Discuss their role in the international equity markets.

Examine why money flows more easily between countries today than it did 20 years ago.

Have students research the growth in international financial flows over the last decade

Read the advertisement shown on page 190. Discuss why the

Commonwealth Bank would offer this service.

Have students:

(a) list the stock market index measurements used in Japan, Hong Kong,

England and the USA.

(b) Record the movement of these measurements over a four-week period.

(c) Extension activity. Investigate the construction of these indexes.

-

Read ‘Your financial questions with Helena Dunlop’ on page 190-91.

Have students prepare three questions and corresponding answers regarding investing overseas.

Internet activity. Use www.jaconline.com.au/commerce to access the link for the Australian Stock Exchange. List five brokers offering ASX

World Link.

Brainstorm the advantages and disadvantages of investing money internationally compared with Australian investments.


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Transnational organisations

 features of a business with global links

 operations

 employment issues

 management issues

 ethical issues of international trade

(Spread 8.4)





Students learn to: explain the reasons why

Australian businesses might expand globally use computer-based technology to investigate issues relating to transnational corporations and offshore businesses

 identify the main activities of a transnational corporation in the

Australian economy

 identify employment issues for a global business

 discuss key management issues in relation to commercial, financial, legal, employment and environmental matters

 investigate how traded goods should meet minimum environmental and human rights standards


-

Explain the term ‘transnational corporation’ (TNCs).

Have the class list twenty TNCs with which they are familiar. Divide the list into domestic and international. On a map of the world, shade in the countries of origin of the TNCs. What does the map reveal?

Identify the features all the TNCs have in common.

Read and discuss the Com Fact on page 192.

Internet activity. Use www.jaconline.com.au/commerce to access the websites of a number of well-known corporations such as Ford; The Body

Shop; Coca-Cola Amatil; Levi Strauss and Company. Have students prepare a brief report on one of the corporations’ global activities.

Elaborate on the following statement: ‘Transnational corporations play a crucial role in our society. Without them, consumers would not have such a wide range of goods and services to select from.’

Examine the illustration on page 192 showing the main reasons why

Australian businesses expand globally. Have students select and research three reasons.

Interview. Have students, in pairs, arrange an interview with the manager of a local business that sells its products overseas. Discuss the reasons for the business deciding to expand overseas. The interview could be videoed and shown in class. (Prior approval will be needed if the interview is to be videoed.)


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(cont.)


 operations




(Spread 8.4)


 explain the reasons why

Australian businesses might expand globally

 use computer-based technology to investigate issues relating to transnational corporations and offshore businesses


Australian economy





Collect from magazines, newspapers or the Internet five articles dealing with Australian businesses that are planning to expand overseas.

(a) Select one article and prepare a brief summary from it.

(b) For each article identify the reasons for the expansion.

Extension activity. In groups of three or four:

(a) have students prepare a case study of an Australian business that has expanded globally.

(b) present the case study to the rest of the class.

Case study. Read the Billabong case study on pages 192-94.

(a) On a map of the world shade in the countries Billabong sources its

products from.

(b) Discuss why Billabong sources its products from these countries?

(c) In which countries are Billabong’s products sold?

(d) What year did Billabong go international.?

Use www.jaconline.com.au/commerce to access the Billabong website.

-

Read ‘Employment issues’ and examine the photo on page 193. Discuss the employment issues for a global business.

Discuss the meaning of ‘minimum labour standards’. Have students identify what they regard should be minimum standards of labour for a person working in a local food business.

Write and perform a song which highlights the problem of labour exploitation in developing countries. (The New Internationalist is an excellent resource.)


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(cont.)


 operations




(Spread 8.4)


 explain the reasons why

Australian businesses might expand globally

 use computer-based technology to investigate issues relating to transnational corporations and offshore businesses


Australian economy





Examine the illustration showing management issues on page 194. List and provide an example for each of the key management issues faced by

TNCs.

-

Brainstorm the advantages and disadvantages of hiring host country employees when staffing an overseas operation

.

-

Read ‘ethical issues of international trade’ on pages 194-95. Discuss the meaning of the term ‘ethics’.

-

Read ‘Billabong’s supplier policy and corporate social responsibility

(CSR) on page 194. How does Billabong fulfil its ethical responsibilities towards the employees of its suppliers?

Research a social or ethical issue confronting a global business. Have students write a short report addressing the following:

(a) What is the issue.

(b) How has the global business reacted to the situation?

(c) Do you think the business’s response was adequate? Why?

Reebok and Levi Strauss place a great deal of importance on their corporate social responsibilities. Both the companies have taken action against overseas suppliers based on their human rights and environmental codes of conduct. Use www.jaconline.com.au/commerce to research their commitment to their social obligations with reference to global sourcing.

-

Extension activity. Have students view sections of ‘The Corporation’.

Analyse an issue raised in the program.


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Global business

 global business and environmental issues

 risks associated with selling to global markets

(Spread 8.5)



Students learn to: investigate the environmental impact of global businesses on communities

 identify and discuss the risks for global businesses


-

Read and discuss ‘Forests down the mine shaft’ on page 196.

-

The term ‘environmental racism’ has been used to describe the deliberate siting of hazardous waste sites in many poor countries of the world. Role play a situation where if the students were the manager of a waste management company, what factors would they take into consideration in selecting a new facility site?

Discuss the flowing statement: ‘Environmental policies are only clever marketing strategies by many transnational corporations. In reality, profit maximisation will win out over ant social responsibility in decision making.’

Cartoon analysis. Examine the cartoon on page 196 and have students answer the following questions: .

(a) Who do the two characters represent?

(b) Who do you think has more influence within the situation? How can you tell?

(c) Compare the appearances and body language of the two characters.

What does this tell you about how they might be feeling? What does the cartoon suggest about the imbalance of market power? Do you think this suggestion is justified? Why?

Read ‘Risks associated with selling to global markets’ on pages 196-97.

Have students complete the mind map commenced in activity 5.


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Global business (cont.)

 global business and environmental issues

 risks associated with selling to global markets

(Spread 8.5)



Students learn to: investigate the environmental impact of global businesses on communities

 identify and discuss the risks for global businesses


Have students list the currency and current exchange rates for five of

Australia’s major trading partners. Record the movements over a five day period.

Outline the role of the foreign exchange market. Role play the operation a forex market in the class. Brainstorm the factors that cause the Australian dollar to fluctuate.

Explain the difference between an appreciation and a depreciation .

Discuss the impact of a depreciation of the Australian dollar against the

US dollar has on the price of exports and imports.

Extension activity. Research currency risk minimisation strategies such as hedging.

Examine the photo on page 197. On a map of the world locate those countries currently experiencing severe social or political unrest. Analyse the distribution.

Brainstorm the risk associated with exporting to a country experiencing severe political and social unrest.

Read and discuss ‘Customs and traditions – some useful information for the global businessperson’ on page 197. Use www.jaconline.com.au/commerce to access Austrade’s website. Have students compile a list of ten other customs and traditions from various countries.

Complete worksheet 8.4 ‘Currency converters’.


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International aid programs

 role of aid

(Spread 8.6)





Students learn to: describe the process involved in a particular aid project and evaluate its effectiveness discuss the role of foreign aid in supporting economic programs in neighbouring countries


-

Have students use the term ‘foreign aid’ in a sentence to explain its meaning.

-

Read and discuss ‘Role of aid’ on page 198. explain the difference between a loan and a grant. Discuss which type of assistance, a loan or a grant, would a:

(a) developed country provide?

(b) developing country receive?

List 5 NGOs involved with providing foreign aid.

Group work. In pairs, research and report on the role of one NGO.

Read and discuss the Com Fact on page 198.

Investigate the ‘Decade of development’ proposal. Compare the suggested percentage of GDP recommended (0.7%) with Australia’s record over the last decade. Discuss the trend.

Debate the following statement: ‘Charity begins at home’.

4. Read about the Cuu Long Delta project on page 199.

(a) Examine how the community benefited form the project?

(b) As a class, evaluate the effectiveness of the project.

Examine the world map on page 198. Discuss the location of countries that

AusAid provides assistance.


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International aid programs

(cont)

 role of aid

(Spread 8.6)



Students learn to: describe the process involved in a particular aid project and evaluate its effectiveness

 discuss the role of foreign aid in supporting economic programs in neighbouring countries


Using the information in this spread to give the students ideas, design a set of posters to show the role of foreign aid in supporting economic development in neighbouring countries. Display the posters in the classroom.

In groups of three or four, research and report on Australia’s foreign aid projects to developing countries. Case studies of particular aid projects can provide information on the role of foreign aid. Use www.jaconline.com.au/commerce to access either the AusAid, TEAR

Fund, CARE Australia or World Vision websites. Present your report as an oral presentation using multimedia applications to enhance the presentation of information.

Complete worksheet 8.5 ‘Topic test – global links’.


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STAGES 4 AND 5 COMMERCE REGISTER

OPTION TOPIC 4: GLOBAL LINKS

AREAS OF STUDY: The global consumer The global investor Transnational organisations

Global business International aid programs

Teacher’s Name ______________________________ Date commenced _________________

Date completed _______________

Content examined: Outcomes achieved:

Teaching/Learning activities used

Mind maps

Point summary

Discussion

Individual research

Locating information

Group research

Accessing websites

Explanation

Statistical analysis Cloze exercise Debate

Cartoon interpretation Diagram

Roleplay

Mathematical computation

Reading

Note taking

Excursion

Comprehension Model construction

Text exercise Topic summary

Problem solving Simulation exercise

Analysing information Lecturette Commerce quiz

Video/DVD

Case study

Pre/post tests

Graph construction

Test item

ICT applications

Brainstorm

Graph interpretation

Oral presentation

Media article

Guest speaker

CD-ROM

Survey

Evaluation of program:

Additional resources:


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

www.fed.gov.au (go to consumer protection)

Some useful Internet sites



www.industrialrelations.nsw.gov.au



www.consumer.gov.au (Ministerial Council on





Consumer Affairs) www.consumeronline.gov.au www.asic.gov.au (go to fido)



www.scamwatch.gov.au



www.asx.com.au



www.choice.com.au



www.dollarsandsense.com.au



www.infochoice.com.au







www.legalaid.nsw.gov.au www.liac.sl.nsw.gov.au (Legal Information Access

Centre) www.ombo.nsw.gov.au (Ombusman)



www.fpa.asn.au



www.wesleycreditline.org



www.ethics.org.au



www.fairtrading.nsw.gov.au



www.accc.gov.au

Commerce is an interesting, exciting and highly relevant subject. I wish you well for the new course.

Stephen Chapman


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Option Topic 4 Global links

Based on the new Commerce Course for New South Wales