Ann E.

Scharfenberg
Page 1 of 14
Do What You Do Best and Trade for the Rest
Ann E. Scharfenberg

Lesson description:
Students participate in a simulation which allows them to experience
comparative advantage. Students create lines, angles, and circles with resources
provided by instructor. Students identify the activity to which their resources are
best suited and specialize in one specific activity. At the end of the simulation,
students recognize that resources are not evenly distributed, wealth is created if
comparative advantage and specialization occurs, and jobs are outsourced.

Age Level:
13-17 year olds

Concepts:
Resource
Specialization
Comparative Advantage
Outsourcing

Content Standards and Benchmarks:

Standard 5 Benchmark 8
Free trade increases worldwide material standards of living.
Standard 6 Benchmark 8
Labor productivity is output per worker.
Standard 6 Benchmark 8
Like trade among individuals within one country, international trade promotes
specialization and division of labor and increases output and consumption.
Standard 6 Benchmark 8
As a result of growing international economic interdependence, economic
conditions and policies in one nation increasingly affect economic conditions and
policies in other nations.
Standard 6 Benchmark 12
Two factors that prompt international trade are international differences in the
availability of productive resources and differences in relative prices.

Objectives:
Students will be able to:
1. Define specialization.
2. Describe how nations benefit from comparative advantage and free trade.
3. Identify three specific goods that could be produce in the United States but
would be very costly, and explain in terms of opportunity costs.
4. Calculate productivity when given data.
5. Identify positive and negative consequences of specialization.

Time required: 60 minutes

Adapted from: Exploring the Marketplace: The International News Journal, Inc.
Joint Council on Economic Education, New York, NY
Lesson 8
 Ann E. Scharfenberg
Page 2 of 14
Materials:
1. 10 rulers, 10 protractors, 10 compasses or one resource/student
2. 3 manila envelopes to hold resources; one envelope per group
3. Activity One; one copy for each group
4. Activity Two; one copy for each student not participating in Round 2
(12/class)
5. Activity Three; one copy for each student
6. Scratch paper for each group (5 sheets/student)
7. Visuals 1, 2, 3, 4, 5; one transparency each
8. Timer
9. Overhead projector with markers

Procedure:
Prior to class organize resources into 3 packets. All rulers in packet A, all
compasses in packet B, all protractors in packet C. Arrange desks into three
groups for students to work together during the activity. It is not necessary to
have an equal number of students in each group. Have an area set up for
students that become unemployed.

1. Begin class by asking to students to share what they know about

“globalization”. Display Visual 1.

2. Display Visual 2. Geometric Design Round 1. Explain the rules of the

activity. Distribute 1 packet of resources, worksheet Activity One, and
scratch paper to each group. Instruct the students to organize, sign all
members names on Activity One, each student should receive one
resource from the packet to use during Round 1.

3. Work time is 3 minutes for Round 1. After round is complete inspect all
lines, angles, and circles produced. Students record results from
inspection on Activity One.

4. After all groups are inspected record group results on Visual 3. Debrief
Round 1.
a) Was the task of 10 lines, 10 angles, 10 circles too difficult given
the number of people in each group? No, there were enough
workers but the resources weren’t divided evenly.
b) Why didn’t any groups succeed and earn the bonus? Answers
will vary and may include wrong resources, resources were
unfairly divided, time too short, etc.
c) If the lines, angles, circles represent production of the basics for
survival, food, clothing, shelter, what would have happened to
the groups? If production levels weren’t met, groups wouldn’t
have survived.
d) Strategies for changing the activity so that the groups could
make enough lines, angles, and circles? Answers may include
trading resources-good idea but some resources like oil aren’t
Adapted from: Exploring the Marketplace: The International News Journal, Inc.
Joint Council on Economic Education, New York, NY
Lesson 8
 Ann E. Scharfenberg
Page 3 of 14
mobile, trading people/workers-good idea but workers don’t
like being told where to live & work; Correct answer trading
products!

5. Display Visual 4. Geometric Design Round 2. Review the rules are the
same EXCEPT each group is going to use its resources to the task they
are best suited. The group with the rulers should make lines and only
lines.
a) Review Activity 1 and excuse any students from the group that
didn’t make lines saying “Thanks for your hard work, but we are
not going to need your skills at this group anymore, sorry but
you are unemployed.” Have the students move out of the group
to a designated area for Round 2. Repeat the review for each
group; group with compasses makes circles and group with the
protractors make angles.
b) Add an incentive for the most productive group between hours
or set a bonus if productivity meets specific targets such as 60
lines/member or 15 angles/member or 25 circles/member
c) Unemployed students will have the 3 minute production period
to brainstorm ideas for finding employment. Only ideas
recorded on worksheet Activity Two will be counted.

6. Conduct Round 2 for 3 minutes. After round is complete

inspect all lines, angles, and circles produced. Students
record results from inspection on Activity One. After all
groups are inspected, record group results on Visual 4.
Invite the “unemployed” students to share ideas they
brainstormed for becoming employed in the activity.

7. Distribute Activity Three, one to each student. Complete the

table. Answers will vary demonstrating calculations of
productivity. Number of products produced divided by
number of workers (output/input) Students should work
together, discussing answers in their respective groups.

Activity 3 Answers ~
1. Compare round 1 to round 2, what was similar? Lines, angles, circles
were produced, round is 3 minutes in length, resources weren’t shared,
What was different? All groups achieved the bonus, some people lost their
jobs, output was greater in round 2, productivity was greater in round 2
2. What happened to production in round 2 when the groups “specialized”?
Production increased, greater productivity.
3. Which group has a comparative advantage in lines? Identify opportunity
costs. Group with rulers, give up making circles & angles.
4. Which group has a comparative advantage in angles? Identify
opportunity costs. Group with protractors, give up making lines & circles

Adapted from: Exploring the Marketplace: The International News Journal, Inc.
Joint Council on Economic Education, New York, NY
Lesson 8
 Ann E. Scharfenberg
Page 4 of 14
5. Which group has a comparative advantage in circles? Identify
opportunity costs. Group with compasses, give up making lines & angles
6. List and explain how nations vary in resource availability. Nations vary in
natural resources such as oil, timber; climate which may be best suited
for certain crops; labor resources, some nations have better skills &
education levels (quality) while other nations have greater number of
people (quantity); technology, access to computers, internet; capital
resources such as tools, equipment, & machines.
7. Define comparative advantage. Comparative advantage is the ability of
person or country to produce a particular good at a lower cost than
another person or country.
8. Identify consequences of specialization. Positive includes increased
production, lower prices & better quality products with increased
competition, wealth created, efficient use of resources, greater variety of
goods, positive foreign relations. Negative includes unemployment,
dependence on other groups, national security issues, and different levels
of compliance to standards.
9. Summarize why businesses and people of different nations trade.
Answers will vary but “if you do what you do best and trade for the rest”
people/businesses will benefit with greater income, variety of products,
more leisure time. When individuals, regions, and nations specialize in
what they can produce at the lowest cost and then trade with others, both
production and consumption increase.

Closure: Display Visual 6. “It has been said that arguing against globalization is
like arguing against the laws of gravity.” Kofi Annan. Discuss with students the
globalization, meaning of quote, and implications for trying to stop forces of
globalization. What does this mean for you and your future?

Extension Ideas:
1. The phrase “Buy America” was an advertising slogan used by Wal-Mart
in the 1990s. Why doesn’t Wal-Mart use it anymore? How does one “buy
American? Nike shoes...made in Vietnam, American or not; Toyota
Camry...built in Lexington KY; American or not.
2. Video clip “Did You Know? 2.0” available on You Tube or Teacher Tube
about the changes technology is making in our lives and the need for 21st
century skills.
3. Compare and contrast the difference location makes for unemployed
workers after Round 1. What would happen to unemployed workers if
groups A, B, C were businesses in same community? The unemployed
workers could apply for jobs at the businesses with extra resources
requiring their skill set. What would happen to unemployed workers if
groups A, B, C were businesses in different states? May not know about
job openings in other states, may have opportunity to relocate to other.
What would happen to unemployed workers if groups A, B, C were
businesses in different nations? Workers need retraining to have skill set
for employment, alternative skills for job openings in other industries.
Adapted from: Exploring the Marketplace: The International News Journal, Inc.
Joint Council on Economic Education, New York, NY
Lesson 8
 Ann E. Scharfenberg
Page 5 of 14

Tips:
1. Place Activity One worksheet in packet so students have it when they
remove the resources.
2. Have a student be a helper during the activity. They can monitor the time,
recycle used paper after rounds, make sure there is enough paper for
round 2.
3. During Round Two, have students count products as they are being
produced. Since students have the appropriate resources, item should be
“perfect”. This saves on time between Round 2 & reflection on Activity
Three.
4. If extra credit or other bonuses are awarded as productivity incentives.
Staple all counted products from each group into a packet. If necessary
products can be verified as accurate.

Adapted from: Exploring the Marketplace: The International News Journal, Inc.
Joint Council on Economic Education, New York, NY
Lesson 8
 Ann E. Scharfenberg
Page 6 of 14

Activity One ~ Group:

Record the names of group members and circle assigned task for round 1. At the
end of the round, Geometric Design inspectors will record the number of
acceptable products for each worker. After inspection, total group production
and calculate group productivity (total # of products/total # of workers).

Name Round 1 Production Round 2 Production

Lines Lines
Angles Angles
Circles Circles
Lines Lines
Angles Angles
Circles Circles
Lines Lines
Angles Angles
Circles Circles
Lines Lines
Angles Angles
Circles Circles
Lines Lines
Angles Angles
Circles Circles
Lines Lines
Angles Angles
Circles Circles
Lines Lines
Angles Angles
Circles Circles
Lines Lines
Angles Angles
Circles Circles
Lines Lines
Angles Angles
Circles Circles
Lines Lines
Angles Angles
Circles Circles
Total # Output Total # Output
of Divided of Divided
lines by Input lines by Input
Total # Output Total # Output
of Divided of Divided
angles by Input angles by Input
Total # Output Total # Output
Divided Divided
Adapted from: Exploring the Marketplace: The International News Journal, Inc.
Joint Council on Economic Education, New York, NY
Lesson 8
 Ann E. Scharfenberg
Page 7 of 14
of by Input of by Input
circles circles

Activity Two ~ Unemployment Line

Name:

1. Skill: I made during Round 1.

2. Group Resource: rulers protractors

compasses
circle one
3. Why were you fired?

4. Analyze solutions to finding employment:

Solution Cost Benefit

1. Learn new skill

2. Relocate to new group

5. Predict whether your former group will make 30+ products during
Round 2?

6. If they do, they will receive a bonus, how do you feel about their
success?

7. If they received a reward, is it fair that you are left out?

8. In which round(s) were you satisfied or happy?

9. Should the government make a rule to protect your job and limit trade?

Adapted from: Exploring the Marketplace: The International News Journal, Inc.
Joint Council on Economic Education, New York, NY
Lesson 8
 Ann E. Scharfenberg
Page 8 of 14

10. What lesson(s) did you learn during this activity?

Activity Three ~ With your group discuss your experiences of participating in the
card simulation. Individually, write the answers to the following questions.

1. Complete the table.

Geometric Lines Angles Circles Productivity
Design (output/input)
Group A
Group B
Group C
Total Output

2. Compare round 1 to round 2, what was similar? What was different?

3. What happened to production in round 2 when the groups “specialized”?

4. Which group has a comparative advantage in lines? Identify opportunity

costs.

5. Which group has a comparative advantage in angles? Identify

opportunity costs.

6. Which group has a comparative advantage in circles? Identify

opportunity costs.

7. List and explain how nations vary in resource availability.

land

labor

capital

8. Define comparative advantage.

9. Identify consequences of specialization.

Positive Negative

Adapted from: Exploring the Marketplace: The International News Journal, Inc.
Joint Council on Economic Education, New York, NY
Lesson 8
 Ann E. Scharfenberg
Page 9 of 14

10. Summarize why businesses and people of different nations trade.

Adapted from: Exploring the Marketplace: The International News Journal, Inc.
Joint Council on Economic Education, New York, NY
Lesson 8
 Ann E. Scharfenberg
Page 10 of 14

Visual 1 ~

“Globalization is a process
of interaction and
integration among the
people, companies, and
governments of different
nations, a process driven
by international trade
and investment and
aided by information
technology.”
http://www.globalization101.org/What_is_Globalization.html

Adapted from: Exploring the Marketplace: The International News Journal, Inc.
Joint Council on Economic Education, New York, NY
Lesson 8
 Ann E. Scharfenberg
Page 11 of 14

Visual 2 ~
GEOMETRIC DESIGN
Rules for round 1

1. The round will be 3 minutes long.

2. Using the resources in its packet, each group

must produce only three products:
*perfect 10 cm line
*perfect 30 degree angle
*perfect 3 inch circle

3. A group CANNOT trade, borrow, buy or take

resources from another group. Only resources
from packet may be used.

4. All of the items produced will be inspected by

buyers of Geometric Design. The buyers will
accept only those items that meet their standards.
Only those items accepted by Geometric Design
will be counted.

5. A bonus will be awarded to any group that meets

its goal :
10 perfect 10 cm lines
10 perfect 30 degree angles
10 perfect 3 inch circles

Visual 3 ~

Adapted from: Exploring the Marketplace: The International News Journal, Inc.
Joint Council on Economic Education, New York, NY
Lesson 8
 Ann E. Scharfenberg
Page 12 of 14

Round One
Geometric Lines Angles Circles Productivity
Design (output/input)
Group A

Group B

Group C

Total

Round Two
Geometric Lines Angles Circles Productivity
Design (output/input)
Group A

Group B

Group C

Total

Strategies for unemployed workers

Solution Cost Benefit

1. Learn new skill

2. Relocate to new group

Adapted from: Exploring the Marketplace: The International News Journal, Inc.
Joint Council on Economic Education, New York, NY
Lesson 8
 Ann E. Scharfenberg
Page 13 of 14

Visual 4 ~
GEOMETRIC DESIGN
Rules for round 2

1. The round will be 3 minutes long.

2. Using the resources in its packet, each group

must produce only one product:
*perfect 10 cm line
*perfect 30 degree angle
*perfect 3 inch circle

3. A group CANNOT trade, borrow, buy or take

resources from another group. Only resources
from packet may be used.

4. All of the items produced will be inspected by

buyers of Geometric Design. The buyers will
accept only those items that meet their standards.
Only those items accepted by Geometric Design
will be counted.

5. A bonus will be awarded to any group that meets

its goal :
Rulers = 30 perfect lines
Protractors = 30 perfect angles
Compasses = 30 perfect circles

Incentive: How many products can your group make? The

more products = the greater wealth created.

Adapted from: Exploring the Marketplace: The International News Journal, Inc.
Joint Council on Economic Education, New York, NY
Lesson 8
 Ann E. Scharfenberg
Page 14 of 14

Visual 5 ~

“It has been said

that arguing against
globalization is like
arguing against the
laws of gravity.”
Kofi Annan
UN Secretary General
1997-2006

Adapted from: Exploring the Marketplace: The International News Journal, Inc.
Joint Council on Economic Education, New York, NY
Lesson 8