1. business and industrial
2. business operations
3. business plans

Cover Sheet
Teacher-Developed Classroom Units and Assessments
___Unit
___Assessment
✔
Kathryn "Gussie" Wyndham, Cherry Creek High School, Cherry
AUTHOR(S): _________________________________________
Creek
5 School District
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International Trade: Creating a Product for a Global Market
TITLE:______________________________________________
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Geography 4.3; Geography 5.3; Geography 1.1
SUBJECT AREA(S):___________________________________
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Secondary, 11th Grade
GRADE LEVEL/AUDIENCE:___________________________
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1999
DATE:_______________________________________________
Staff of the History, Geography, Civics Summer Institute and
REVIEWED BY:______________________________________
the
Colorado Department of Education.
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_____________________________________________________
1999 Written by Kathryn Wyndham
COPYRIGHT INFORMATION: ©_______________________
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This material may be reproduced for classroom use.
Colorado Department of Education
Standards & Assessment Resource Bank
Geography Assessment
11th Grade
International Trade:
Creating a Product for
a Global Market
Kathryn “Gussie” Wyndham, Cherry Creek School District
Inquiry Question:
Standards assessed:
Geography 4.3
How does economic interdependence and cooperation between
nations affect countries, companies’ decisions, and the environment
through global trade?
Students understand the patterns and networks of economic
interdependence.
• Analyzing factors influencing economic interdependence of
countries, including world trade.
• Analyzing connections among local, regional, and world
economies.
Geography 5.3
Students understand the changes that occur in the meaning use,
location, distribution, and importance of resources.
• Analyzing the effects of economic activity in modifying and
transforming the environment,
Geography 1.1
Students know how to use maps, globes, and other geographic tools to
acquire, process, and report information from spatial perspective.
• Interpreting maps and other tools, through the analysis of case
studies and using data.
Overview:
Through the process of evaluating proposals and writing an Executive
Summary, students demonstrate their understanding that global trade
is a vehicle which results in interconnectedness and cooperation
among countries, people and the environment.
The assessment scenario is as follows:
A company with capital to invest in the development of a manufactured
product on the international market has taken the initial steps to procure
the perfect site and conditions to expand. The student is an evaluator for
this proposed venture. Directed by the CEO, the student will evaluate three
proposals that have been submitted by research teams. The student must
focus on market targets, plausible marketing techniques, trade
alliances/treaties, resources available (both domestic and international),
environmental impacts and how, where, and by whom the product will be
produced. The student will have access to handouts that include: three
product proposals, directions for completing an Executive Summary, and a
scoring guide.
Materials Needed:
Handout #1: Instructions for Executive Summary
Handout #2: Blank world map
Handout #3: Blank planning chart
Handouts #4, 5, 6: Proposals for Venezuela, Taiwan, and Sri Lanka
Handout #7:
Scoring Guide
Optional:
Maps of the three countries under consideration
Student World Almanacs
Time Allotment:
Prior Learning:
One class period and homework
Prior learning could include:
• Development of geographic skills on using and interpreting maps,
atlases and almanacs.
• Understanding the concept of international interconnectedness.
• Defining the term “system” and understanding that the earth
operates as huge system of interrelated subsystems.
• Demonstrating understanding of change and cross-cultural
communication.
• Identifying resources and the environmental tradeoffs.
• Understanding growing regional cooperation.
• Identifying various treaties and trade alliances.
Teacher Instructions:
Day One
Pose the question: How does economic interdependence and
cooperation between nations affect countries, companies’ decisions,
and the environment through global trade?
Distribute Student Handout #1. Read aloud and check for
understanding.
Distribute Student Handouts #2 - 7. Monitor the room as students
complete their charts and/or maps. The chart and/or map will assist
students as they write their Executive Summaries.
You may also wish to distribute maps of the three nations that are
under review as well as almanacs.
Explain that the Executive Summary will be finalized at home and
returned at the beginning of class the next day. (Homework)
Day Two
Collect Executive Summary and debrief assessment, if desired.
Handout # 1
Creating a Product for a Global Market
You have been hired by a company that has capital to invest in the development of a new
manufactured product for the international market. You are an evaluator
who must help
the company determine which of the proposed enterprises will be the best choice for their
investment.
You must evaluate three proposals that have been submitted and make a final recommendation to the
CEO (Chief Executive Officer) via an Executive Summary, a brief 1-2 page report in defense of
the best proposal. You must select one of the three proposals. Your critique is important and
must be concise. The Executive Summary should be thorough, 1-2 pages in length, typed, and
ready for the CEO tomorrow. Remember: only ONE proposal may be selected!
The three selections for your consideration are on Student Handouts #4, 5 and 6. In writing your
Executive Summary, be sure to consider:
•
the target markets
•
plausible marketing techniques
•
trade alliance/treaties
•
resources available in country of origin
•
resources needed from the international trade market
•
environmental impact, and
•
the how, where, and by whom the product will be produced.
Which one will you recommend to the CEO? The Executive Summary must have rationale for all areas
as the CEO does not have time to check your worksheets. Millions of dollars are awaiting your
expert decision.
Use Student Handout #2 (blank world map) and Student Handout #3 (blank chart) to help you organize
your thoughts.
Student Handout #7 is a scoring guide.
The CEO will accept your Executive Summary in
24 hours!
Handout #3: Chart
Country
Product
Imports/
Where
Market(s)
Environment
How/Where/
Whom
Marketing
Techniques
Trade/
Treaties
Resources
available
Handout #4
Proposal for Venezuela
Product: Individual coffee bags
Venezuela has the resource of coffee, a necessary commodity to make individual coffee bags or packets.
The best quality coffee comes from plantations in the mountains. Cuba has paper products for export. Chile has
paper products. Germany has the materials and machinery for printing and the production of ink. Possible target
markets could include Canada, Germany, and/or the Netherlands. The countries targeted for marketing are located
in climate zones where it is impossible to produce coffee; the countries mentioned are filled with workers who need
that first cup of the day!
Venezuela is a 1/3 larger than Texas, occupying most of the northern coast of South America on the
Caribbean Sea. Columbia borders it to the west, Guyana to the east, and Brazil to the south. Mountain systems
break Venezuela into four distinct areas: (1) the Maracaibo lowlands, (2) the mountainous region in the north and
northwest, (3) the Orinoco basin, with grass covered plains on the south and southeast, (4) the Guiana Highlands,
accounting for nearly half of the national territory.
Languages: Spanish, Indian dialects in the interior.
Literacy rates: 90%
Agricultural products: rice, coffee, corn, cacao, sugar, bananas, dairy and meat products
Labor force: 7.6 million, 63% in services, and 25% in industry
Principle industrial products: refined petroleum products, aluminum, iron, steel, cement, textiles, and transport equipment
Natural resources: petroleum, natural gas, iron ore, and hydroelectric power
Major trading partners: United States, Japan, Germany, Italy, Netherlands, Canada
Additional data on Venezuela:
•
One of the most stable political systems in South America; since 1958 all governments have been civilian and
democratically elected.
•
The country has vast petroleum reserves. Petroleum is a necessary item in the production of plastic.
•
The government has introduced a package of austerity and trade restructuring measures to contain inflation, make
industry more competitive, and refinance the foreign debt.
•
Labor costs are a sizable element in production costs.
The following are organizations and various affiliations for Venezuela:
•
Andean Group -- Five country membership. Regional cooperation including development finance. Started in 1969.
•
OPEC- Organization of Petroleum Exporting Countries. 13 members established in 1960. Coordinates crude oil export
price levels. Fund for aid to develop countries.
•
United Nations
•
OAS - Organization of American States. Established on 1948. Presently has 35 members. US and almost all South and
Central America. Peace, security, mutual understanding and cooperation among states of Western Hemisphere are the
major concerns.
Handout #5
Proposal for Taiwan
Product : Remote control car
Taiwan has the technical expertise to build the electronics necessary for the great toy. Metals would be
required; Germany has iron ore, coal, copper, and nickel. Saudi Arabia has petroleum in excess. It should be noted
that petroleum is essential in the production of plastics. Possible markets for the remote control car could be the
United States, Canada, New Zealand, and Australia. These industrialized countries have the extra dollars to buy
expensive but neat toys. Leisure time has increased and the “kid in all of us” needs toys. The appeal would be
across the ages and for both genders.
The Republic of China consists of the island of Taiwan, an island 100 miles off the Asian mainland in the
Pacific; two offshore islands Kinmen and Matsu; and the nearby islets of the Pescadores chain. It is slightly larger
than the combined areas of Massachusetts and Connecticut. Taiwan is divided by a central mountain range that
runs north and south, sharply ascending on the east coast and descending gradually to a broad western plain,
where cultivation is concentrated.
Taiwan became the seat of China’s Nationalists government following the 1945-50 civil war when the
Chinese Communists established the People’s Republic of China on the mainland. In 1971, when the People’s
Republic was admitted to the United Nations, Taiwan lost its seat in the organization, its legitimacy no longer
recognized. The central government consists of five major branches: Executive, Legislative, Judicial, Control, and
Examination. President and Vice President are popularly elected for a term of four years.
Languages: Chinese (Mandarin)
Literacy rate: 93%
Principle products: rice, yams, sugar cane, bananas, pineapples, and citrus fruits
Labor force: 9,270,000 ; 39% in industry, 11.5% in agriculture, and 49.4% in services
Natural resources: coal, natural gas, limestone, and marble
Major trading partners: United States, Japan, and Germany
Additional information about Taiwan:
•
Work force has a positive attitude toward foreign employers and is educated and skilled
•
The export market is very successful
•
Large foreign currency reserves are established, and there is minimal foreign debt and low inflation
•
There is good potential in the service and technology industries
•
Factories and plants must meet environmental protection standards
•
Highway and railway networks are extensive
•
The normal workweek is 48 hours
•
The national health insurance and labor insurance schemes require employers’ contribution
•
Many employers provide their workers with free dormitory accommodations or a meal allowance
•
Half of the country’s electricity is generated from fossil fuel (must be imported)
Taiwan is a member of SEATO -- South East Asian Treaty Organization: formed by collective defense pact signed in Manila by
the U.S. , Britain, France , Australia, New Zealand, Philippines, Pakistan, and Thailand.
Handout #6
Proposal for Sri Lanka
Product: Pencils
Sri Lanka has the resource graphite, a necessary commodity to make pencils. The nation of Indonesia has
timber to export and Thailand has ample tin and rubber for our needs. The team recommends the possible target
markets of Japan and the United States. Possible methods of marketing include handing out free sample pencils at
teacher conferences to encourage brand recognition and product loyalty. The choice of Japan as one of the
markets is based on the student school schedules. Not only do the Japanese students have a 220-day school year
but most attend night schools to enable them to score well on university entrance exams.
Sri Lanka is an island in the Indian Ocean off the southeastern tip of India. Sri Lanka is about half the size of
Alabama. Most of the land is flat and rolling; mountains in the south central region rise to over 8,000 feet. Ceylon
became an independent country in 1948 after British rule and reverted to the traditional name Sri Lanka
(“Resplendent Island”) on May 22, 1972. A new constitution was adopted in 1978 and set up the National State
Assembly, a 225-member unicameral legislature that serves for six-year terms unless dissolved earlier. Sri Lanka
became a self-governing dominion of the Common Wealth of Nations in 1948.
Principle products: tea, coconuts, rubber, rice, and spices
Labor force: 6,600,000, 13% in mining and manufacturing
Literacy rate: 90%
Natural resources include: limestone, graphite, and gems
Major trading partners: United States, United Kingdom, Germany, Japan, Singapore, India, Taiwan, Belgium, and China
Languages: Sinhala, Tamil, and English
Additional information about Sri Lanka:
•
Skilled manpower and professional managers are available at moderate cost
•
Strategic location from which to access the South Asian markets
•
The use of foreign brand names is permitted
•
Safety, environment, and consumer protection controls are being made extensive
•
As factor of production, labor costs compare favorably with those of industrialized countries
•
Provisions of pension or provident fund schemes are not mandatory
The following are organizations and various affiliations for Sri Lanka:
•
•
•
•
•
•
Non-Aligned Movement - association of countries outside super blocks. Program for economic and technical
cooperation. Additional focus, since 1992, the environment. 104 nation membership.
Colombo Plan - seven neighboring nations for economic growth.
SARC - South Asia Regional Cooperation Committee.
Group 77 - membership now includes over 120 nations but retains old name. Principal comprehensive Third World
voice on economic matters.
United Nations
British Commonwealth - Commonwealth nations were once British colonies but have special trading arrangements with
each other.
Student Handout #7: Scoring Guide
Standard 4.3:
Student understands
patterns and networks of
economic
interdependence
Standard 5.3:
Student understands the
changes in the meaning,
use, location, distribution
and importance of
resources
Standard 1.1:
Student knows how to use
geographic tools to acquire
and report spatial
information
Advanced: 4 points
Executive Summary is well written
and clearly defends one proposal.
It is concise, professional and
convincing.
Response:
• emphasizes importance of
trade agreements,
relationships, and partners
• explains marketing techniques
appropriate for chosen
markets
• discusses import/export
potential
• provides thorough list of
resources available (including
labor force, raw materials)
• clearly explains environmental
issues and includes possible
recommendations for
restoration
• addresses sustainability
• provides thoughtful analysis
and plausible conclusions
based on data
• locates reasonable potential
site for factory, based on data
• considers trade routes and/or
ease of transport based on
maps
Proficient: 3 points
Executive Summary is clear
and defends one proposal.
Basic: 2 points
Executive Summary is
somewhat vague and
provides limited support for
the selected proposal.
Response:
• simply lists a few
trading partners
• mentions unsuitable
marketing strategies
Limited: 1 point
Executive Summary is
vague and does not
adequately support any
proposal.
Response:
• does not mention
trade partners or
agreements
• does not include
appropriate
marketing
strategies
includes important
relevant resources
discusses environmental
impact, but may not
mention possibilities for
how to deal with it
•
lists a few resources
(may mention raw
materials but omit labor
force)
may mention
environment, but no
specific impacts
•
provides reasonable
conclusions based on data
demonstrates use of maps
in site location or trade
routes
•
reaches a conclusion
that is not necessarily
based on the data
provided
does not locate
appropriate site or
mention trade routes
•
Response:
• considers importance of
trading partners and trade
alliances
• mentions marketing
strategies suitable for
selected market
•
•
•
•
•
•
•
•
lists resources that
are wrong,
irrelevant, or none
at all
omits
environmental
impact
reaches no clear
conclusion
shows no evidence
of map use
(Exemplary Response. Note: all proposals could be supported)
Buckeye International
September 12, 1998
Economic Evaluator Department
399940 Wealthy Blvd.
Bakersfield, California. 93308-7889
Dear CEO:
After thoroughly examining all three proposals, I strongly recommend the Sri Lanka site as our next successful
financial venture. The pencil factory would be set up on the eastern coast of the island nation, to best take advantage of the
shipping lanes and reduce transportation cost with Sri Lanka.
The workers would be made up of the 13% labor force trained in manufacturing. Skilled manpower and professional
managers are available at a moderate cost to the company. Further, the labor costs are low compared to the other proposals.
Sri Lanka’s natural resources of graphite and timber would be augmented with timber from Indonesia. The trade relationship is
strong between these two nations, via SARC, the Non-Aligned Movement and the Colombo Plan. All these agreements are
dedicated to strengthening trade in South Asia and other third world nations. Rubber and tin would be commodities that would be
needed in the production of the pencils. The neighboring nation of Thailand has both rubber and tin. The trade relationship
between Sri Lanka and Thailand is fairly strong, again referring to organizations mentioned earlier. In addition, all three nations
involved are similar and business dealings with the United States continues to be strong.
The environmental impact would be sizable. The mining necessary for graphite and the production of tin would deem
land reclamation necessary in Sri Lanka and Thailand. Environmental concerns growing in Sri Lanka , so this issue can not be
swept under the mat. The timber needed for this project would require replanting projects in Indonesia and Sri Lanka. Indonesia
would be a back up source if Sri Lanka’s government would stop the tree harvesting. Additional concerns would include the
waste products from the factory and the packaging pollution. Even though
the environmental concerns are great the strength of the entire proposal provides the impetus for a “GO” on this project.
The marketing selection for the pencil proposal are great! Japan and the United States are strong trading partners with
Sri Lanka. The marketing technique of free
handouts to American educators to develop product loyalty is a wonderful possibility. Certainly, that would be a positive move
for the PR department to explore. The Japanese student connection is a brilliant beginning. I would also include more
traditional methods such as the bookstore warehouse/ magazines and novelty lines as we consider avenues to market our
product.
I highly recommend the Sri Lanka proposal. The connections between the nations to be involved are strong and bottom
line fruitful. I look forward to further dialogue on this project.
Sincerely,
William Bimat
Economic Evaluator
Buckeye International
Bibliography
Thomas, Alan. Third World Atlas: Second Edition, Taylor and Fraviers, New York, New York. 1997.
Johnson, Otto Ed., Almanac: The International Authority Houghton Mifflin Company, New York, New
York. 1997.
Asia and Oceania Today: A Reproducible Atlas. Produced by the United Nations, US Department of
State and the Central Intelligence Agency. World Eagle, Inc. Littleton, Massachusetts. 1997.
Doing Business in Taiwan: Information Guide Price Waterhouse World Firm Services BV Inc., Taipei
Taiwan. 1996.
Doing Business in Venezuela: Information Guide Price Waterhouse World Firm Services BV Inc.,
Venezuela. 1993.