It’s A Small World
1470 Introduction to Finance
TOPIC OR UNIT OF STUDY
Economics & Finance
CONTENT STANDARD(S) AND OBJECTIVE(S)

Discuss the measure of consumer spending as an economic indicator
(Activity 1)

Explain the concept of Gross Domestic Product (GDP)
(Activity 1)

Discuss the impact of a nation’s unemployment rates
(Activity 1)

Explain the economic impact of interest-rate fluctuations
(Activity 1)

Determine the impact of business cycles on business activities
(Activity 2)

Describe the relationship between economic conditions and financial markets
(Activity 2)

Explain the nature of global trade
(Activity 2& 3)

Discuss the impact of cultural and social environments on global trade
(Activity 2 & 3)

Describe the determinants of exchange rates and their effects on the domestic economy (Activity 3)

Explain the nature and scope of financial globalization
(Activity 3)
INTRODUCTION
As a child we all heard the song “It’s a Small World After All”, but we probably did not fully understand
how that would affect us. Now we realize that rebuilding cities in China can affect the supply of
concrete in the US, and a war in Iraq can affect the price of gas around the world. Understanding what
affects our prices helps consumers to be more alert to possible pricing changes.
ESSENTIAL QUESTION
What items make up the GDP and what events, both local and global, can affect the prices of GDP?
INTEGRATION OF ACADEMICS, TECHNOLOGY, ENTREPRENEURSHIP
To complete this project, students will use basic terms and concepts, to complete the following
academic, technology, and entrepreneurship activities:
 Academic activities –website research, critical thinking and writing skills;
 Technology activities – website research using interactive game site, & use of MOS Word;
 Entrepreneurship activities – building beginning knowledge of stock market, investing, and
financial report interpreting.
STUDENT INVOLVEMENT IN PLANNING PROCESS
Students will choose their own websites for research on the final subject in this unit.
TASK(S)
 Diagram relationship of consumer spending, interest rates & unemployment in Activity 1 90 min
 View videos on Financial Markets & business cycle in Activity 2 to answer questions
90 min
 Explain Internet material pertaining to questions on global economy in Activity 3
90 min
RESOURCES
websites: http://www.youtube.com/watch?v=Aiz6P0EfybU
http://www.investopedia.com/articles/economics/09/the-impact-ofunemployment.asp#axzz23pXWzjgn
http://fivethirtyeight.blogs.nytimes.com/2010/09/19/consumer-spending-and-theeconomy/
http://www.badcreditloancenter.com/understanding-interest-rate-fluctuations/
http://www.youtube.com/watch?v=EWJhMdeKpus
http://www.youtube.com/watch?v=y3jswNXtQrs
http://carnegieendowment.org/ieb/2012/08/02/what-does-u.s.-election-mean-for-worldeconomy/d5mp
http://www3.nationaljournal.com/members/news/2002/01/0116insider.htm
http://www.globaltradealert.org/
http://www.investopedia.com/ask/answers/forex/how-forex-exchange-ratesset.asp#axzz2AWHOL24n
http://finance.yahoo.com/currencyconverter/?amt=1&from=eur&to=usd&submit=convert#from=EUR;to=USD;amt=1
TECHNOLOGY USE
Computers, Word software, Youtube videos, and the Internet
EVALUATION
 Activity 1 - Diagram relationship of spending, interest rates & unemployment
31 pts
 Activity 2 - View videos on Financial Markets & business cycle to answer questions
14 pts
 Activity 3 - Explain Internet material pertaining to questions on global economy
24 pts
Total Points
69 pts
Authentic assessments will be evaluated with the rubrics that are located on each activity.
TIMELINE
Block scheduling-3 days, periods-6 days. This does not include time for lecture, textbook readings, and
discussions. Depending on student’s ability, extended time may be needed on some projects.
Day 1
Diagram relationship of spending, interest rates & unemployment in Activity 1
90 min
Day 2
View videos on Financial Markets & business cycle in Activity 2 to answer questions 90 min
Day 3
Explain Internet material pertaining to questions on global economy in Activity 3
90 min
CONCLUSION
At the end of this unit, students will understand what items make up the GDP and what events, both
local and global, can affect the prices of GDP.
What Impacts us Most?
Watch the following video about the GDP http://www.youtube.com/watch?v=Aiz6P0EfybU
Answer the following questions:
1. What does it mean when there is an increase in the GDP?
(2 pts)
2. What is the effect of a decreasing GDP?
(2 pts)
3. When is it ideal for there to be an equilibrium un expenditures and GDP?
(2 pts)
Break up into groups of three & Read the following web articles:
http://www.investopedia.com/articles/economics/09/the-impact-ofunemployment.asp#axzz23pXWzjgn
http://fivethirtyeight.blogs.nytimes.com/2010/09/19/consumer-spending-and-the-economy/
http://www.badcreditloancenter.com/understanding-interest-rate-fluctuations/
You and your team members will create a diagram or a graphic organizer showing how consumer
spending, interest rate fluctuations, and unemployment affect the economy and each other.
Be sure to include not just the three subjects but also how they can impact the others.
Content
Diagram clearly shows the relationships between interest rates, consumer
spending, and unemployment
There is a clear definition given for Consumer Spending, Interest Rates and
Fluctuations, and unemployment
Students show what impact that any changes in the three subjects can have on
the economy.
Mechanics & Neatness- No spelling, grammar, or punctuation errors evident on
the diagram, as well as being neat and easy to read.
Creativity and imagination – points are clearly relayed using individual ideas,
creativity evident, geared toward student understanding
Questions 1, 2, & 3 above all answered fully and accurately
Comments:
Points
12345
12345
12345
12345
12345
123456
Total Points
______/31
Financial Markets &
The Business Cycle
Watch the following video
http://www.youtube.com/watch?v=EWJhMdeKpus
1. What does it mean by “the business cycle is stuck?”
(3 pts)
2. How does this “being stuck” impact the business?
(3 pts)
3. How does it impact the local and globaleconomy?
(3 pts)
Watch the following video:
http://www.youtube.com/watch?v=y3jswNXtQrs
4. Because the Economic conditions are unfavorable, what happens to investors?
(2 pts)
5. What does this mean for financial markets?
(3 pts)
Total Points ____ of 14
IT’S A SMALL WORLD AFTER ALL
Years ago people were not concerned with the weather thousands of miles away, let
alone the events in China, unless we were at war with them. Today we have the weather channel
keeping us up to date on the weather in Florida which affects the price of our oranges. We also watch
the weather on the gulf coast which might affect off-shore drilling and an increase in our fuel prices.
Use the Internet to research the following questions. List the website used to answer the question if
other than the one provided, and be sure to answer the questions thoroughly.
Question
Answer
Points
1. How can a country’s elections
affect the global economy?
___ of 3
http://carnegieendowment.org/ieb/2012/08/02/what-does-u.s.-election-mean-for-worldeconomy/d5mp
2. How is the US economy affected
by Global events? (like wars,
rebuilding, etc.)
___ of 3
http://www3.nationaljournal.com/members/news/2002/01/0116insider.htm
3. What is global trade?
___ of 3
http://www.globaltradealert.org/
4. How are exchange rates set?
___ of 3
http://www.investopedia.com/ask/answers/forex/how-forex-exchange-ratesset.asp#axzz2AWHOL24n
5. If you were traveling overseas
and spent 8 Euro on a
sandwich, would that be
expensive? Convert to US dollar
and explain.
___ of 3
http://finance.yahoo.com/currency-converter/?amt=1&from=eur&to=usd&submit=convert#from=EUR;to=USD;amt=1
6. List global events that affect the
prices of food.
___ of 3
7. List global events that affect the
prices of fuel.
___ of 3
8. List global events that affect the
US stock market.
___ of 3
Total Points ______ of 24