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Political AND

Economic World
Global Studies

Name____________________
Global Studies

What is Economics Really About?


Directions: A hospital in a town has one dialysis machine that can run for 30
hours per week. As the boss of the hospital, you must decide who gets the
treatment. There are a number of patients who require treatment and their
needs are given below.
These machines are used for patients who have kidneys that dont work
properly without dialysis the patients would quickly die. They are expensive
costing about $100,000.
Some patients can get a kidney transplant, which means they wont need
dialysis any longer.

Patient A: 6 year old child who needs 10 hours per week. They are awaiting a kidney
transplant which is expected to occur in one year.
Patient B: A 55 year old man who needs 5 hours per week. He is married with grown up
children.
Patient C: A 3 year old child who will need dialysis indefinitely. Currently needs 4 hours per
week.
Patient D: 78 year old female, 4 hours per week.
Patient E : 7 year old child, has three brothers and sisters, 4 hours per week.
Patient F: 8 year old child, no brothers and sisters, 5 hours per week.
Patient G: 30 year old female, two young children, 6 hours per week.
Patient H: 30 year old male, two young children, 5 hours per week.
Patient I: 30 year old male, no children, 4 hours per week.
Patient J: 45 year old man with no children. Needs 6 hours per week but has a brother who
will donate a kidney. This will take place in six months time.
Patient K: A 65 year old man who requires 10 hours per week. As he has quite wealthy, he
has promised to buy another dialysis machine for the hospital if he is still alive in one years
time.
Decide how you will allocate the 30 hours, in order of preference.

Warm Up: What is


Economics Really
About?

What is Global Studies?

Global Studies: is the academic study of economic, political, historical


and cultural relations and processes that in some way bear upon the
world.

Though this course you will develop your:

Cultural awareness

ability to think globally and locally

Skills in research and analysis

Awareness of current affairs

Economics

Economics

is a social science that


analyzes the production,
distribution, and
consumption of goods and
services.

Natural Resources
(including energy)

Human Resources

Capital Resources

Economics
Scarcity: Sometimes there is not enough of something to go around. That item

is scarce.
the artwork of Picasso is scarce because its not renewable and there are

only a few pieces.


the KEY fundamental economic problem
Shortage: is a man-made choice. Suppliers are not willing to make goods

available for this amount of money.


its a shortage if they can make more.
a bad crop causes a shortage in rice.

Economic Resources
1. Natural Resources

elements from the Earth that are not made by people but can be
used by them for food, fuel, or other necessities

Two Types

Renewable: replace themselves over time (soil, water, forests)

Non-renewable: will not replace themselves. Once they are


used, they are gone (fossil fuels: oil, coal, natural gas, and
metals: gold, iron, copper).

Economic Resources

Nuclear

Solar

Petroleum

Wood

Economic Resources

Russia

Japan

Numerous resources

Natural resources located in areas that


are not economically profitable to
develop.

Highly industrialized
(developed)

Major manufacturing region

Very limited natural resources

Most valuable resource is


skilled labor (human resource)

United States

diversified economy

abundant natural resources

specialized industries

Economic Resources
2. Human Resources (labor)

A person providing labor or a service and includes his/her skills


and/or abilities; depends on level of education,

3. Capital Resources (support)

Any asset used to produce a good or service.

money, and infrastructure (road systems, health services,


energy, waste disposal, airports, food distribution, water
treatment).

Game Time
Identify whether the following are a:
A. Natural Resource
B. Human Resource
C. Capital Resource
Hold up one finger for A. , two fingers for B.
and three fingers for C.

Capital

Capital

Natural /
Energy

Capital

Human

Name_____________________________
Global Studies
Directions: Pick a type of business [i.e. Gas station, restaurant, library, book store, pizza shop, ice cream store].
Using the THREE factors of production, make a list of the things you would need for each of the factors for the
business you picked. [I.e. If you picked a book store, your labor would be research assistant, book keepers, cashiers,
managers, someone to stock the shelves.]

Applying Economics Worksheet: Factors of Production


Type of Business you picked: _______________________
Natural

Human

Capital

Classwork: Applying
Economics
Worksheet

Homework: Where Do My T-Shirts


Come From?

Name____________________
Global Studies

Where do our t-shirts come from?


Look at the labels on your clothing and make a mark in the country of origin on the map below.

Developing a Nation: Worksheet


Planning the future of a developing nation
Congratulations! You are the new, first democratically-elected government of Elysia,
a small, beautiful tropical island in the Indian Ocean.
Until now, Elysia has not been economically successful. Most people on the island
survive by fishing and growing fruit. Education and health care facilities are very
basic. Other facilities such as roads, shops and public transport barely exist. Most
goods are bought and sold in local markets and people get around the island by bike,
or on foot. Although Elysia is a peaceful country, a small group in the north of the
country have been demonstrating to make the north of the island independent from
the south. One of the reasons is that a geological survey, sponsored by an American
oil company, indicated that there might be large reserves of oil in the region.

Warm Up: Developing


a Nation

As a gesture of friendship, you have been offered a large amount of money: $500
million, in aid by the European Union. You are determined to invest this money in
the best way possible to improve living conditions for the people of the island. There
are various possibilities. You must decide how you want to invest the money. The
only condition is that if you decide to invest in airports, for example, you must build
2, as indicated. You cannot decide to build only one for half the cost.
Discuss with your group and decide how best to spend the money.
The possibilities are as follows:
2 airports: $120 million.
3 hospitals: $ 100 million.
7 tourist hotels: $80 million.
25 health clinics (offering basic health care): 90 million.
30 primary schools: $100 million.
30 secondary schools: $150 million.
2 universities: $50 million.
5 fruit-processing factories for producing fruit juice: $20 million.
5 cargo ships (for transport): $32 million.
100 fishing boats: $85 million.
A major oil-exploration venture in the north of the island, in partnership with the
American oil company: $40 million.
New parliament building: $30 million.
500 km of new roads: $10 million.

Economies & World Trade


1. Primary Activities: dealing directly with natural resources (ex.--fishing,
farming, mining, and forestry); the main economic activity in developing
countries.
2. Secondary Activities: are manufacturing and processing of natural
resources (ex.--steel mills, automobile assembly, sawmills); developing
countries have little activity at this level, while developed countries have
much activity at this level.
3. Tertiary Activities: are service industries (ex.--transportation, retail
trade, informational technology services); the more developed a country,
the more tertiary activities exist.

Game TimeAgain
Identify whether the following are a:
A. Primary Activity
B. Secondary Activity
C. Tertiary Activity
D. Quaternary Activity
Hold up one finger for A. , two fingers for B. ,
three fingers for C. , and four fingers for D.

Tertiary

Primary

Tertiary

Secondary

Tertiary

For the only way in which a durable peace can be created is by


world-wide restoration of economic activity and international trade.
-James Forrestal

The Importance of Trading

No one person, country, region, etc. has all the resources it needs to
produce what it wants.

Trade is the voluntary exchange of goods and services among


individuals and businesses

Countries import (bring goods and services into a country from


abroad for sale) that they need, and export (send goods or
services to another country for sale) to make a profit.

A Tariff (a tax or duty to be paid on a particular class of


exports), assists to bring in extra revenue in particular
instances.

Classwork: Understanding Trading Exercise

Honors Homework: Coca-Cola &


The Rise of America

Name________________________
Global Studies

Thinking Like an Economist


Problem A Traffic on the Beltway
Many big cities such as Washington, DC have major highways surrounding them that become heavily
congested each morning and evening due to commuter traffic. Many workers travel between their
workplace and home turning roadways into parking lots.
Brainstorm how society would typically attempt to solve the problem of the traffic on the beltway and
how the solution would be intended to work. Prepare to explain your answer.

Warm Up: Thinking


Like an Economist

Problem B Overfishing
It is common that fish and other seafood become overfished, as there is a high level of competition
among fishermen to get their nets in the water. While vacationing in North Carolina, shrimp for sale at
the fish market were not from their typical locations off the coast of the Carolinas. The shrimp were
imported as the shrimpers had overfished the nearby waters leaving very few shrimp to harvest.
Brainstorm how society would typically attempt to solve the problem of the overfishing and how the
solution would be intended to work. Prepare to explain your answer.

Problem C Elephant Endangerment


The endangered elephant in African nations such as Kenya, Tanzania, & Uganda has suffered near
extinction for years due to hunting as the elephant tusks bring a high price on the ivory markets around
the world.
Brainstorm how society would typically attempt to solve the problem of the elephant endangerment and
how the solution would be intended to work. Prepare to explain your answer.

Economic Systems
1. Traditional Economy

Economic questions are answered by habits and customs (the way it


has always been done)

Children work the same jobs parents worked, often farming or


hunter/gatherer

Fear Change!

Ex. Eskimos, & the Amish

Economic Systems
2. Command Economy

The government answers the basic economic questions

Advantages: able to act quickly in emergencies, provide for all people


equally

Disadvantages: Inefficient, no incentive to work hard or be creative

Ex. Communist Countries (China, Vietnam, North Korea, former


Soviet Union, Cuba)

Economic Systems
3. Market Economy

Economic questions are answered by individual buyers and sellers.

Supply and demand influence economy

People act out of self interest; motive for profit (money) drives the
economy

Also known as FREE ENTERPRISE or CAPITALISM

Ex. The United States, Western Europe, Japan

Economic Systems
4. Mixed Economy:

the countrys economy is a mixture of either pure market,


command or traditional, elements of each appear in all
economies, some have more elements of one economy than
another.

while the U.S. is mostly a free market economy, it does have


elements of a command economy.

How would a pizzeria function under


different economic systems?

Free Market Economy

I answer the basic economic questions!

I determine how much cheese and pepperoni goes on the pizza

I determine the quality of the cheese and pepperoni

I set my employees wages

I set my business hours

Command Economy

The government answers the basic economic questions

The government sets the amount of cheese and pepperoni on


each pizza

The government determines quality of cheese and pepperoni

The government sets employees wages

The government sets business hours

Problem: What does the government know about pizza?

Mixed Economy

The government and I both answer the basic economic questions

I determine the amount of cheese and pepperoni on the pizzas;


government determines the quality of cheese and pizza

I set employee wages; government sets minimum wage for


employees

I determine business hours; government determines whether I am


safe to be open or not

Name______________________
Global Studies

Economic Systems Graphic Organizer


Directions: Complete the chart (diagram) below. Define each type of economic systems. Provide other names these systems may be called, explain how
government may be involved, and list example countries or places.
Economic System

Traditional

Capitalism

Command
Economy

Mixed Economy

Other Name(s)

Definition

Government Involvement

Examples

WARM UP:
Capitalism vs Communism
Name__________________
Global Studies

Capitalism vs Communism
Directions: On the following worksheet, read each sentence and decide if it is an example of Communism or Capitalism
and write the correct term in the blank following each sentence.
1. I grew 3 apples, the government took those apples, gave one to me and one to each of my two
neighbors. _________________
2. Your small business hit a rough patch and you lost all of your money. You have to close the business
and find a job elsewhere. _________________
3. I make $20,000 a year, so does the heart surgeon who lives down the street from me.
_________________
4. I go to Chapmans Foods and buy whatever groceries I want to buy. _______________
5. I only make $20,000 a year, but the teacher who lives down the street from me won the lottery and
made 30 million in one day. __________________
6. Your small business hit a rough patch and lost all of its money, you are still given your salary and may
have a chance to get the business back on its feet. ___________________
7. I go to the grocery store and buy the same goods as everyone else in the store. _________________
8. I have a great idea to improve computers, I will call it Microsoft and will sell it to millions of people
and become one of the richest people in the world. _________________
9. I have a great idea to improve computers, I will call it Microsoft. The government will take my idea
and make sure that I receive the same amount of money for my work as every other person.
__________________
10. I am a talented basketball player (seriously, NBA quality), I am going to go professional and make
millions of dollars a year. __________________

Economies & World Trade

International trade fosters


interdependence (trade makes other
countries depend on each other for a
resource or product); fosters the
formation of economic unions.

An Economic Union is a community of


nations that join together to promote
similar economic interests.

These often are used to create free


trade zones where no tariffs limit trade
and often have a common currency.

Economies & World Trade


1. The European Union

Most European nations

Formed to reduce trade barriers and promote better


cooperation among member nations

Uses the Euro as common currency

2. NAFTA: North American Free Trade Agreement

US, Canada, Mexico

Reduces Trade barriers

Economies & World Trade


3. ASEAN: Association of SE Asia Nations

Most of SE Asia

4. OPEC: Organization of Petroleum Exporting Countries

Middle East, Nigeria, Indonesia, Ecuador, Gabon, Venezuela

Controls the price and sale of petroleum

Economies & World Trade


5. IMF: International Monetary Fund

ensures the stability of the


international monetary system (i.e.
exchange rates)

6. WTO: World Trade Organization

is the only global international


organization dealing with the rules
of trade between nations.

helps protect and manage


money during trade.

Advantages to Economic Unions


1. Member nations can become more industrialized b/c they cooperate
with other nations. They also have access to each others technology.
2. Nations have access to larger markets or places to sell their good,
because they are working with other nations in the global market.
3. Members have access to natural, human, and capital resources
without restriction.
4. Member nations have greater influence on the world market
because they are more powerful as a union than trading alone.

Disadvantages to Economic Unions


1. Some industries can close as a result of economic unions. This may
hurt the workers of a nation.
2. Economic unions can result in the concentration of some industries
in certain countries while surrounding countries are excluded.
3. Large agricultural companies, aka agribusiness, will replace small
family farms. This leaves family farmers unemployed.
4. Member countries disagree on certain policies, such as setting
prices.

Name____________________________
Global Studies

The E.U. Selection Committee

The European Unions Membership Criteria


1. Must be a European country
2. Must respect the European Unions democratic values* and is willing to promote these values.
3. Must have a government institution that is stable, will guarantee democracy, and protect the rule of law
and human rights.
4. Must have a functioning market economy.
5. Must be able to deal with the competitive nature of the market within the European Union.
6. Must accept established European Law and pratice.
*Democratic Values: Fundamental beliefs, Life, Liberty, and the Pursuit of Happiness

Directions: Using your notes define the following terms.


Market Economy:

Mixed Economy:

Command Economy:

Classwork:
European Union
Selection
Committee
Worksheet

WARM UP:
GapMinder Card Sort
Teachers guide and students material

A card game with


The Gapminder
World Map

About this lesson


Level: secondary school. Subjects: history, geography &
social studies. What you need: only this document.
Outline: The students will try to arrange country cards in
an order that illustrates the gaps in the world today. They
then compare their arrangement with the Gapminder
World Map graph.

About this document


By Mattias Lindgren, the Gapminder Foundation,
based on an idea by Paula Cooper. Version:
02/09/2010
This guide is available at:
www.gapminder.org/downloads/card-game
Cover photo by: Meeralee http://bit.ly/b9GLwv

License
You are free to use and re-distribute this material
for non-commercial purposes under a creative
commons licence. We ask you to credit
1 as the source:
www.gapminder.org

Developed vs Developing Countries

Based on economics, the world has been divided into two types of
countries.

Developed nations: can generally be categorized as countries that


are more industrialized and have higher per capita income levels.

Developing nations: is a broad term that includes countries that


are less industrialized and have lower per capita income levels.

Per capita income: is the average income per person in their


given country.

Developed vs Developing Countries

GDP: A commonly used measure of a nations wealth, determined


from the annual profits generated within a region by all goods and
services exchanged that year.

Literacy Rate: The ability of an individual to read and write, with


understanding, a simple short statement related to his/her
everyday life.

Access to Improved Sanitation: Percentage of population with


access to improved sanitation facilities that hygenically separate
sewage from human contact.

Developed vs Developing Countries

Total Fertility Rate: The average


number of children a woman will have
in her lifetime.

Life expectancy: The average number


of years a person born today could
expect to live under
current death rates.

Infant Mortality rate: The yearly


number of children who die before
reaching the age of one year per 1,000
live births.

Developed vs Developing
Economic Indicators

Developed

Developing

Advanced technology;
strong infrastructure

Limited technology,
weak or non-existent
infrastructure

Human Resources

Well-Educated; Highly
Skilled

Poorly trained; lowly


skilled

Levels of Economic
Development

Very high GDP; Per


capita Income over
$20,000

Low GDP; Per capita


Income less than $5000

Lots of people live in


cities

Lots of people in rural


areas, moving to cities

Access to Capital
Resources

(Technology / Infrastructure)

(GDP / Per Capita Income)

Population Distribution

Developed vs Developing
Economic Indicators

Developed

Developing

Education

Most have HS diploma;


Many have college degree

Very little beyond 8th grade

Natural Resources

Lots of resources (h2o, oil,


natural Gas)

Little or limited access

Literacy Rate

>90%

<60%

Life Expectancy

75-80

50-60

Infant Mortality

7 per 1000

Very high

Age Distribution

Unit 7

T U D E N T

C T I V I T I E S

Unit 7, Lesson 43

Unit 7, Lesson 43

Activity 1

Activity 1

Rich Nation/Poor Nation

Rich Nation/Poor Nation

Part 1. You are secret agents assigned to find out if a


country is rich or poor. From the information provided
below, identify each of the five countries listed. Jot
down the countrys name opposite each bold-face
heading.

Part 2. Rank the five countries you have identified


in order, with the richest country placed at 1 and the
poorest country at 5. Write the letter of the country
used in the list above and the name of country.

Country A __________________________________

Richest

Size: Three-tenths the size of the United States

Country Letter

Country Name

1. ______________ _______________

Population: 37,000,000 (small for a nation this size)

2. ______________ _______________

Natural Resources: Rich resources with fertile land


and minerals such as lead, zinc, tin, copper, iron ore,
oil, and uranium

3. ______________ _______________
4. ______________ _______________
5. ______________ _______________

Country B __________________________________
Size: About the size of California
Population: 127,000,000
Natural Resources: Fish, no mineral resources
Country C __________________________________
Size: Twice the size of California
Population: Large population of 127,000,000
Natural Resources: Vast resources including oil, tin,
iron ore, coal, limestone, lead, zinc, and natural gas
Country D __________________________________
Size: 1.8 times the size of the United States
Population: 145,000,000
Natural Resources: Vast resources with major
deposits of oil, natural gas, coal, many strategic
minerals, vast timber supplies
Country E___________________________________
Size: 3.5 times larger than Washington, D.C.
Population: 4,000,000
Natural Resources: Fish, deepwater port

Poorest

Warm Up: Rich or


Poor Nation
Investigation

Politics

Government

an organization that people set up to protect their community and


to enforce its rules

roles include:

protection of lives

protection of liberties

protection of property of members of the community

provide services that the people cannot provide on their own

Politics

Political Borders

determined by govt. and are artificial (imaginary lines)

often reflected in: neighborhoods, cities, countries, states, school


districts, election districts, & regional districts.

Example: North and South Korea

Natural Borders

created by physical features that divide one place from another

Example: Rio Grande River (Mexico and US)

Politics

State an independent unit that


occupies a specific territory and has
full control of its internal and
external affairs

Sometimes called country

Nation people w/ a common


culture living in a common territory
and having a strong sense of unity

Stateless Nation - some groups have


a common nationality but no territory

Palestinians, Kurds

Forms of Government
FORM

CHARACTERISTICS

EXAMPLE

Direct
Democracy

Leaders are usually elected by the people;


citizens who are eligible to vote have a say in
how the government operates.

Athens

Representative
Democracy

People elect representatives who will


represent the citizens of the country

United States

Republic

Dictatorship

Government by the people; indirect form of


democracy; citizens elect representatives; United States
representatives elected for set terms.
One individual holds complete political
power, citizens have no influence over
governmental policy

Syria

Forms of Government
FORM

CHARACTERISTICS

EXAMPLE

Anarchy

No government; could occur after a civil war


when government is destroyed

The Purge

Monarchy

Oldest form of government; Power Inherited;


Lifelong tenure; king or queen

France (pre
Marie
Antoinette)

Constitutional Monarchs share power w/ elected legislature


known as Parliament; symbolic head of state
Moarchy

England

Oligarchy

Small group of people make most


government decisions for their benefit;
membership by family, wealth, etc

Sparta

Theocracy

Nation recognizes a God or Deity as their


ruler; King/Ruler is Gods representative

Iran

Established by Government
1. United Nations (UN)

an international organization created


shortly after the end of WWII.

2. World Health Organization (WHO)

is a specialized agency of the


United Nations (UN) that is
concerned with international public
health.

Its current priorities include


communicable diseases, in particular
HIV/AIDS, Ebola, malaria and
tuberculosis

Maintains worldwide peace and


security
Fosters cooperation between
nations in order to solve
economic, social, cultural, or
humanitarian international
problems

Established by Government
3. The Group of Eight (G8)

aim is to try to solve global


problems by discussing big
issues and planning what
action to take.

France, Germany, Italy,


Japan, the UK, America,
Canada, and Russia

4. The Group of Twenty (G20)

discusses international
economic cooperation, and
focuses on ways to
strengthen the global
economy.

Solving World Problems


without Africa or Latin
America.

Whats wrong with that statement?

Classwork / Homework: Create Your Own


Government Activity