THE ROLE OF THE U. S. IN A GLOBAL
ECONOMY
TEXAS COUNCIL ON ECONOMIC
E D U C AT I O N
LAURA EWING
71 3 . 6 5 5 . 1 6 5 0
LAURA@ECONOMICSTEXAS.ORG
1 8 01 A L L E N PA R K W AY, H O U S T O N , T X
77019
WWW.ECONOMICSTEXAS.ORG
WWW.SMARTERTEXAS.ORG
TCEE
• Teaches teachers who teach students who
are the future of Texas
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develop critical thinking skills for students in
Economics, Social Studies, Math, and
Career/Technical Education classes.
THIS WORKSHOP AND THE ACCOMPANYING MATERIALS
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GENEROUS SUPPORT OF STATE FARM AND THE
COUNCIL FOR ECONOMIC EDUCATION.
THIS WORKSHOP AND THE ACCOMPANYING MATERIALS ARE
MADE AVAILABLE TO TEACHERS THROUGH THE GENEROUS
SUPPORT OF STATE FARM AND THE COUNCIL FOR
ECONOMIC EDUCATION.
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AND/OR SPONSORED BY:
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TEACHERS
10 week Student Session
• 10 Week Student Session Fall and Spring
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Teams of 4 to 5 students
• Teaches math, investments,
• decision-making
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Concepts
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Select Grade Band
Selected
lesson
TEKS FOR U.S. HISTORY
POST RECONSTRUCTION
(13) Geography. The student understands the causes and effects of migration and
immigration on American society. The student is expected to:
(A) analyze the causes and effects of changing demographic patterns resulting from
migration within the United States, including western expansion, rural to urban,
the Great Migration, and the Rust Belt to the Sun Belt; and
(B) analyze the causes and effects of changing demographic patterns resulting from
legal and illegal immigration to the United States.
TEKS FOR U.S. HISTORY
POST RECONSTRUCTION
(15) Economics. The student understands domestic and foreign issues related to U.S.
economic growth from the 1870s to 1920. The student is expected to:
(A) describe how the economic impact of the Transcontinental Railroad and the
Homestead Act contributed to the close of the frontier in the late 19th century;
(C) explain how foreign policies affected economic issues such as the Chinese
Exclusion Act of 1882, the Open Door Policy, Dollar Diplomacy, and immigration
quotas;
TEKS FOR WORLD HISTORY
(15) Geography. The student uses geographic skills and tools to collect, analyze, and
interpret data. The student is expected to:
(A) create and interpret thematic maps, graphs, and charts to demonstrate the
relationship between geography and the historical development of a region or
nation; and
(B) analyze and compare geographic distributions and patterns in world history shown
on maps, graphs, charts, and models.
(16) Geography. The student understands the impact of geographic factors on major
historic events and processes. The student is expected to:
(C) interpret maps, charts, and graphs to explain how geography has influenced
people and events in the past.
TEKS FOR WORLD HISTORY
(1) History. The student understands traditional historical points of reference in world
history. The student is expected to:
(F) identify major causes and describe the major effects of the following important
turning points in world history from 1914 to the present: the world wars and their
impact on political, economic, and social systems; communist revolutions and
their impact on the Cold War; independence movements; and globalization.
TEKS FOR GEOGRAPHY
(5) Geography. The student understands how political, economic, and social processes
shape cultural patterns and characteristics in various places and regions. The student
is expected to:
(A) analyze how the character of a place is related to its political, economic, social, and
cultural elements; and
(B) interpret political, economic, social, and demographic indicators (gross domestic
product per capita, life expectancy, literacy, and infant mortality) to determine the level
of development and standard of living in nations using the terms Human Development
Index, less developed, newly industrialized, and more developed.
(6) Geography. The student understands the types, patterns, and processes of settlement.
The student is expected to:
(A) locate and describe human and physical features that influence the size and
distribution of settlements; and
(B) explain the processes that have caused changes in settlement patterns, including
urbanization, transportation, access to and availability of resources, and economic
activities.
TEKS FOR WORLD GEOGRAPHY
(7) Geography. The student understands the growth, distribution, movement, and
characteristics of world population. The student is expected to:
(A) construct and analyze population pyramids and use other data, graphics, and
maps to describe the population characteristics of different societies and to
predict future population trends;
(B) explain how political, economic, social, and environmental push and pull factors
and physical geography affect the routes and flows of human migration;
(C) describe trends in world population growth and distribution; and
(D) examine benefits and challenges of globalization, including connectivity, standard
of living, pandemics, and loss of local culture.
TEKS FOR WORLD GEOGRAPHY
(11) Economics. The student understands how geography influences economic
activities. The student is expected to:
(A) understand the connections between levels of development and economic
activities (primary, secondary, tertiary, and quaternary);
(B) identify the factors affecting the location of different types of economic activities,
including subsistence and commercial agriculture, manufacturing, and service
industries; and
(C) assess how changes in climate, resources, and infrastructure (technology,
transportation, and communication) affect the location and patterns of economic
activities.
TEKS FOR GOVERNMENT
(6) Economics. The student understands the relationship between U.S. government
policies and the economy. The student is expected to:
(A) examine how the U.S. government uses economic resources in foreign policy; and
TEKS FOR ECONOMICS/
FREE ENTERPRISE
(4) Economics. The student understands the issues of free trade and the effects of
trade barriers. The student is expected to:
(A) compare the effects of free trade and trade barriers on economic activities;
(B) evaluate the benefits and costs of participation in international free-trade
agreements; and
TEKS FOR ECONOMICS
FREE ENTERPRISE
(10) Economics. The student understands key economic measurements. The student
is expected to:
(A) interpret economic data, including unemployment rate, gross domestic product,
gross domestic product per capita as a measure of national wealth, and rate of
inflation; and
DEFINITIONS
GDP: THE TOTAL MARKET VALUE OF ALL FINAL
GOODS AND SERVICES PRODUCED IN AN
ECONOMY IN A GIVEN YEAR.
GNP: THE TOTAL MARKET VALUE OF ALL FINAL
GOODS AND SERVICES PRODUCED BY AN
ECONOMY IN A GIVEN YEAR
WHY FINAL VALUE?
VALUE OF SUGAR, FLOUR, EGGS
VALUE OF FINISHED PRODUCT: COOKIES
WHY?
WHICH COUNTRY IS RICHER?
COUNTRY A GDP
$100,000,000
COUNTRY B GDP
$200,000,000
WHICH COUNTRY IS RICHER?
GDP
COUNTRY A $100,000,000
COUNTRY B $200,000,000
POPULATION
COUNTRY A = 1,000,000 PEOPLE
COUNTRY B = 3,000,000 PEOPLE
PER CAPITA GDP
THE TOTAL MARKET VALUE PER PERSON OF ALL
FINAL GOODS AND SERVICES PRODUCED IN
AN ECONOMY IN A GIVEN YEAR.
What is U.S?
What is Texas GSP?
WHAT IS U.S. GDP VS. TX GSP?
U.S. 2007
2008
2009
2010
$46,459 $47,015 $45,793 $47,153
Source: http://data.worldbank.org/indicator/NY.GDP.PCAP.CD
2010 U.S. $47,482
#1 DC
$174,500
# 2 Delaware
$ 69,667
#24 Texas
$ 45,940
#50 Idaho
$ 34,250
http://en.wikipedia.org/wiki/List_of_U.S._states_by_GDP
ACTIVITY 1: GDP
PLEASE READ THE ARTICLE
WHAT IS THE DEFINITION OF GDP HERE?
WHAT ROLE DOES MEASURE OF VALUE PLAY?
WHAT IS DOUBLE COUNTING?
WHAT ARE FLOW OF PRODUCT APPROACH AND
EARNINGS AND COST APPROACH?
GDP
GDP = C + I + G + (X-M)
C
= CONSUMERS
I
= INVESTMENTS
G
= GOVERNMENT
EXPORTS = EXPORTS – IMPORTS
U. S. POPULATION IN 1993 = $24,683
WHAT DOES GDP NOT TELL US?
SOUTH AMERICAN MAP
THE GDP PER CAPITA OF CANADA IS BETWEEN
$_____ AND $_____.
FOUR COUNTRIES WITH GDP PER CAPITA
BETWEEN $15,000 AND $19,999 ARE:
THE NATIONS OF SOUTH AMERICA HAVE GDP
PER CAPITA BETWEEN $___ AND $___.
HOW WOULD YOU SET UP A
CHOROPLETH MAP OF SOUTH AMERICA? PAGES
58 AND 59
ENRICHMENT: CHOOSE A COUNTRY WITH A LOW
GDP AND ONE WITH A HIGH GDP. SET UP A
CHOROPLETH MAP TO SHOW THE
DIFFERENCE. ALSO, VISUALLY DEPICT THE
CAUSES OF THESE DIFFERENCES.
Push and Pull Factors
PUSH
Costs of present location
that drive people away
PULL
Benefits of new location
because it has
advantages
“In 2002 the United Nations estimated that around
175 million people, or about 3% of the world’s
population, resided in a country different from their
country of birth.”
THE ECONOMICS OF
IMMIGRATION
• EXAMINE AN ECONOMIC MYSTERY AS
TO WHY SWEDISH FARMERS MIGHT
HAVE COME TO THE U.S. IN 1880
• STUDY VISUALS TO DETERMINE YOUR
ANSWER
• USE SUPPLY AND DEMAND ANALYSIS
TO EXPLAIN WHY THE KING TRIED TO
CONVINCE THEM TO RETURN
Why Did Immigrants Come To
The U.S. Late 1800’s?
• 1865 to 1920 = 28 million + to U.S.
Sought higher standard of living
Join family and friends
Needed jobs due to surplus labor abroad
Escape religious persecution
Read advertisements of promises for better life
Why do you think Swedish immigrants would have
abandoned their lands in the late 19th and early
20th centuries to come to the U.S.?
DISCUSS VISUAL 22.I
• Read the advertisement distributed to farmers in
Sweden in the 1880’s by representatives of Union Pacific
Railroad.
• RR companies wanted to sell land, establish farmers in
west who would sell and buy products distributed by the
railroads. RR built ahead of demand.
• Use visual 22.1 and Activity 22.1 to read and answer the
questions in context of the information given.
• Three rules of economic decision-making include that
people:
– Decide based on the most advantageous combination of
costs and benefits
– Respond to incentives in predictable ways
– Must deal with the rule of the economic system and their
influence on choices and incentives
VISUAL TWO
• REVIEW THE STATISTICS
• ESTIMATE HOW MANY IMMIGRANTS
ARRIVED IN THE U.S. BETWEEN 18711920. WHAT HAPPENED IN THE
1870’S AND 1880’S AND 1916-1920
THAT HAD AN IMPACT ON
IMMIGRATION?
REMINDERS
• THE MARKETS ALLOCATE SCARCE
RESOURCES. WHAT ARE THE SCARCE
RESOURCES HERE?
• WHAT ROLE DO IMMIGRANTS PLAY?
• WHAT ROLE DO EMPLOYERS PLAY?
VISUAL 22.2: MIGRATION TO
THE UNITED STATES
• WHAT MIGHT HAVE BEEN PUSH FACTORS?
• WHAT MIGHT HAVE BEEN PULL FACTORS?
• WHAT WERE THE EXPECTED BENEFITS AND
COSTS FOR THE SWEDISH FARMERS?
• IF YOU HAD LIVED THEN, WOULD YOU HAVE
MIGRATED TO THE U.S? EXPLAIN.
WHAT CAUSED A
RETURN TO SWEDEN?
• WHY WOULD SUCCESSFUL SWEDISH
FARMERS DECIDE TO RETURN TO
SWEDEN?
• VIEW VISUAL 3
P5
P4
P3
P2
P1
Q1
Q2
Q3
Q4
Q5
CLOSURE
• IN WHAT WAYS CAN IMMIGRATION BE
VIEWED AS ACTION TAKING PLACE
WITHIN AN INTERNATIONAL MARKET
OF BUYERS AND SELLERS?
• WHY DID IMMIGRANTS COME TO THE
UNITED STATES?
FOCUS: GLOBALIZATION
MIGRATION: LESSON 8
TEXAS COUNCIL ON ECONOMIC EDUCATION
1801
Allen Parkway
Houston, TX 77019
713.655.1650
www.economicstexas.org
VOCABULARY AND CONCEPTS
Human capital
 Skilled workers
 Unskilled workers
 Emigration
 Immigration
 Brain drain

FOCUS: LET’S BEGIN
Why do people migrate?
 What are the concerns about immigration?
 What are the concerns about emigration?

CONTENT STANDARDS
1. How and why do people react to incentives?
 2. What role do incentives play?
 3. What determines the income people earn?

OBJECTIVES





1. Explore economic incentives that lead to
migration, both economic and non-economic
2. Describe the difference between skilled and
unskilled workers and the effects of immigration on
both
3. What are the economic effects of immigration
4. Define/discuss cause and effect of brain drain
5. Illustrate impact of immigration on wages using
supply and demand diagram
STUDENT FOCUS
1. Do you know anyone who was born in a
different country?
 2. Was anyone in your family born in a different
country?

UNITED STATES: NATION OF IMMIGRANTS
 Melting
pot
 Salad bowl
 US 31 million
born elsewhere
 11 % of US population
 Define: Emigration & Immigration
 Why do people come to the US?
VISUAL 1: U.S. IMMIGRANTS BY CLASS
OF ADMISSION, 2004
What are three facts that you can learn from
the chart?
 Summarize the point of the chart
 Continue looking at the other charts

WHY IS IMMIGRATION TO US DIFFICULT?
Why do people need to be related to a citizen or
resident?
 Why else is it difficult to immigrate?

WHO SHOULD BE ALLOWED TO
IMMIGRATE TO THE UNITED STATES?
Doctor
 Teacher
 Construction worker
 Agricultural worker
 Computer programmer

WORKERS
What is the difference between skilled and
unskilled workers?
 “Most countries have adopted immigration
policies that are at least partly based on
workers’ occupation or skill level.”

VISUAL 2: VISAS
What is a visa?
 What are three facts you can learn from the
chart?
 How would you summarize the point of the
chart?

WHAT ARE THE DIFFERENCES BETWEEN Permanent residence status
 Temporary Worker Visas

ECONOMIC REASONS FOR IMMIGRATION INTO
THE UNITED STATES ARE –
WHAT IS HUMAN CAPITAL?
What impact do immigration and emigration
have on human capital in a market?
 Why is human capital important in a global
economy?
 What role do wages play with immigration?

ROLE PLAY: 20 MINUTES
You will be assigned a particular role from
Activity One. (pages 190 to 195)
 Follow the instructions on page 188:

 Play
the role but you can improvise
 Interview 5 people to find out how each has been
affected by migration. Would they agree or
disagree with laws to limit immigration?
 As you interview, complete the chart on page 189
 Summarize the most important statements
 Decide whether or not each would favor laws to
make migration easier.
DISCUSSION
Based on what you have learned, discuss who
gains and who loses from immigration?
 Use these terms as you discuss your answers –
Host country
home, source, native country
Remittances (cards 9 and 14) – transfer
Returnees - reverse immigration

WHO IS HELPED? WHO IS HURT?
Why is immigration restricted in the US?
 Discuss Visual 3
 Why does the United States allow immigration
with the “negative” impact displayed on
Visual 3?

UNSKILLED WORKERS
What are the advantages and disadvantages of
allowing more unskilled immigrants into the
United States?
 What are the advantages and disadvantages of
skilled workers?

COMPARE AND CONTRAST
1. Do you believe that the benefits of
immigration by skilled workers are greater than
the benefits of immigration by unskilled
workers?
 How do you contrast the benefits of the
immigration of skilled workers with the costs of
emigration by skilled workers?
 How do you use the term brain drain in your
examples?

BRAIN DRAIN
Read Visual 4 and describe the main points
 Study Visual 5 and summarize the
information
 What do you notice about the information in
Visual 6?
 What is the message in Visual 7?

COMPARE AND CONTRAST
The supply and demand of labor in the host
country before and after immigration with
 The supply and demand of labor in source
country before and after emigration

?
WHY DOES THE UNITED STATES
Attract so many workers, both skilled and
unskilled?
 Offer higher wages than many other countries?

DEBATE

Using topics A, B, and C on page 177, debate
the pros and cons of each issue one at a time.
AND THE POINT IS?
CONTROVERSY OVER GLOBALIZATION
What do you know about the pros and cons of
Globalization?
 Please read your part to yourself. Make a poster
that shows your arguments. Draw a picture and
list words/phrases that describe your viewpoint.
You will hold this up during your presentation.
 You will participate in a production in which you
will portray your character’s viewpoint and
personality. Hold you poster up for all to see.

CONTROVERSY OVER GLOBALIZATION
Use the chart to jot down notes about the
positions that others played.
 Discuss the viewpoints in small groups and
continue to complete your chart.
 Your group will make large protest posters.
 What is the point of the lesson?

WHAT ARE SWEATSHOPS?
What do you look for when you buy clothes and
shoes?
 Look at your clothes label and determine where
your clothes are made.
 Using your handout, find and record three
different ways to view sweatshops.
 Which position best represents you? Why?

EVALUATIONS
Thank you for attending today!
 Please complete your evaluation.
 Please pick up your pin drive as you leave.
Laura Ewing
Texas Council on Economic Education
1801 Allen Parkway, Houston 77019
713.655.1650
www.economicstexas.org
www.smartertexas.org

PRESENTER
• LAURA EWING
• TEXAS COUNCIL ON ECONOMIC
EDUCATION
• 1801 ALLEN PARKWAY
HOUSTON 77019
• LAURA@ECONOMICSTEXAS.ORG
• WWW.ECONOMICSTEXAS.ORG