Students first learn about exchange rates. Then they examine the elements that make up the global economy. Next they learn about the factors in creating a new t-shirt: resources, technology, producers, transportation and technology, and consumers. Finally they analyze the importance of a diversified economy.
Students are introduced to the idea that nations interact through the global economy and review the lesson objectives. They view an image of a currency exchange board and watch the video Big Mac Index to see how currency values compare across countries. Using an online currency converter, they determine the exchange rate for $1.00 in three different countries and record the country, value, and currency in a table.
Teacher MovesExplain the concepts of strong and weak currencies using examples (such as the Kuwaiti dinar and Turkish lira) and highlight how exchange rates affect the cost of international trade.
Students read an explanation of the global economy and watch the video International Trade Explained to learn about imports, exports, specialization, and productivity. They then complete a drag-and-drop activity to match these key terms with their definitions. Next, they read the articles How does the global economy work? and Global Economy: Meaning, Characteristics, Challenges and create a concept map graphic organizer that shows major features and components of the global economy.
Teacher MovesInvite volunteers to present their concept maps and use them to emphasize key ideas, including international trade and capital flows, comparative advantage and specialization, currency exchange and monetary policy, the role of large financial institutions, trade barriers, the impact of information technology, government support for domestic companies, and how globalization can create both opportunities and inequalities while spreading ideas and values.
Students learn that they will investigate the lifecycle of a t-shirt and how it connects to the global economy. Using the interactive website Planet Money Makes a T-Shirt, they explore its five chapters—Cotton (resources), Machines (technology), People (producers and social aspects), Boxes (transportation and technology), and You (consumers and social aspects)—according to the grouping strategy explained by the teacher. Individually, they complete a graphic organizer by writing the main idea for each chapter, summarizing how each stage of production and distribution links different countries and economic roles.
Teacher MovesExplain and implement a grouping strategy (such as assigning each group or group member a chapter, or having groups work through all chapters together) and provide a clear time frame for the activity.
Students read about the difference between a single-resource economy and a diversified economy and how diversification can make an economy more flexible and resilient. They then choose one of three scenarios—a global cotton crop failure, a major military conflict disrupting Atlantic shipping, or a U.S. tariff on clothing imports—and post a response predicting how their chosen scenario would affect different elements of the global economy, explaining their reasoning.
Teacher MovesShare interesting or exemplary student responses with the class and use them to clarify how the first two scenarios represent disruptions in global supply chains and the third represents government interference in the free market. Guide discussion of sample impacts (such as changes in prices, production, employment, and trade patterns) and ask students how each scenario illustrates the importance of having a diversified economy.
Students complete the exit quiz by answering all the questions.
Teacher MovesFacilitate the assessment and use student data to evaluate understanding, address misconceptions, and identify areas for growth.
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