How do economic factors influence Europe?
Essential Question How do economic factors influence Europe? Instructional Approach(s): The teacher should introduce the essential question for the lesson. Standards SS6E6a. Compare and contrast different types of trade barriers, such as tariffs, quotas, and embargoes. SS6E6b. Explain why international trade requires a system for exchanging currencies between nations. SS6E7a. Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP). Instructional Approach(s): The teacher should introduce the standards that align to the essential question. Standards SS6E7b. Explain the relationship between investment in capital (factories, machinery, and technology) and gross domestic product (GDP). SS6E7c. Explain the role of natural resources in a countrys economy. SS6E7d. Describe the role of entrepreneurship. SS6G11c. Evaluate how the literacy rate affects the standard of living in Europe. Instructional Approach(s): The teacher should introduce the standards that align to the essential question. Economic Factors Matching Pair Activity
Instructional Approach(s): Individuals or small groups complete the Economic Factors Matching Pair Cards [linked on the curriculum map] to match an economic term to its correct definition/example for review. This activity can be used as an activator for the lesson. Use your Economic Factors in Europe Graphic Organizer to summarize the important information from the lesson. Instructional Approach(s): The teacher should give each student a copy of the Economic Factors in Europe Graphic Organizer [linked on the curriculum map] to record important information during the lesson. Trade Instructional Approach(s): Transition slide to first concept Because every country does not use the same type of money, international trade requires a system for exchanging currencies between nations. Instructional Approach(s): The teacher should present the information on the slide. The European Union simplified currency exchange when it established the euro as the common currency for its member nations. Instructional Approach(s): The teacher should present the information on the slide while the students summarize the important information on their graphic organizer. This one common currency has made trade and travel much easier within Europe. Trade Barriers Countries sometimes set up trade barriersto restrict trade because they want to sell and produce their own goods Tariff: a tax placed on imported goods Quota: a restriction on the amount of a good that can be imported Embargo: trade is forbidden with another country Instructional Approach(s): The teacher should review the concept of trade barriers with the students. TRADE BARRIERS Tariffs: higher price on imports = lower demand on imports = higher demand on domestic goods Instructional Approach(s): The teacher should present the information on the slide. The European Union (EU) was primarily established to set up free trade among countries in Europe.
Products produced in Europe can now move freely, without tariffs, to other EU member nations.This free trade leads to huge cost savings for European consumers and businesses. Instructional Approach(s): The teacher should present the information on the slide. Students do not need to write down the information yet. A summary slide is provided at the end to summarize trade barriers in Europe. TRADE BARRIERS Quotas: supply shortage = higher price on imports = higher demand on domestic goods Instructional Approach(s): The teacher should present the information on the slide. In order to protect its members, the EU sometimes establishes quotas on trade with other nations and within the EU. Examples: The EU placed quotas on clothing imports from China when EU members with strong textile industries complained about cheap import prices. The EU strictly limits the amount of fish a boat can bring to port in order to give EU countries equal fishing advantage. Instructional Approach(s): The teacher should present the information on the slide. Students do not need to write down the information yet. A summary slide is provided at the end to summarize trade barriers in Europe. Turn to an elbow partner todiscuss 1-2 benefits of being a European Union member nation and a possible disadvantage to being a European Union member nation (in terms of trade). Instructional Approach(s): Have students turn to a partner and discuss the question on the slide. Partners can be determined by the students or the teacher can provide more specific directions such as turn to the person directly in front/behind you or to the right/left of you, etc. It may be necessary to have a group of three if you have an uneven number of students. Do not allow more than 30 seconds to 1 minute of discussion time. The teacher should be walking around listening and redirecting discussions as needed. The teacher can briefly discuss student responses. Possible Answers: Benefit: common currency and free market trade without tariffs. Possible disadvantage: have to stick to quotas on certain products or resources so that another EU member nation is not at a disadvantage. Embargoes: NO trade at all!
TRADE BARRIERS Embargoes: NO trade at all! Instructional Approach(s): The teacher should present the information on the slide. The EU will embargo imports from foreign countries if that country doesnt follow specific quota rules. Embargoes are sometimes put in place for safety reasons (for example, an embargo against African fish products due to unsanitary water conditions). The EU may also embargo imports from countries for political reasons (for example, an embargo against a country that violates its citizens human rights). Instructional Approach(s): The teacher should present the information on the slide. Students do not need to write down the information yet. The next slide summarizes trade barriers in Europe for students to record on their graphic organizer. In Short The EU has eliminated tariffs to increase free trade among its member nations. The EU uses quotas to protect its member nations from other countries and each other. Instructional Approach(s): The teacher should present the information on the slide while the students record the information on their graphic organizer. The EU imposes embargoes to protect its member nations and punish other countries for political reasons. Think, Pair, Share:What is the MVP or most valuable point about trade in Europe?
Instructional Approach(s): Have students turn to a partner and discuss the question on the slide. Partners can be determined by the students or the teacher can provide more specific directions such as turn to the person directly in front/behind you or to the right/left of you, etc. It may be necessary to have a group of three if you have an uneven number of students. Do not allow more than 30 seconds to 1 minute of discussion time. The teacher should be walking around listening and redirecting discussions as needed. The teacher can briefly discuss student responses. Possible Answer: Trade in Europe is influenced heavily by the European Union, which increases/eliminates various trade barriers in order to best benefit its member nations and make trade in Europe very successful. Investments in Human Capital
Human Capital: Educationand training Instructional Approach(s): The teacher should review the concept of investing in human capital with the students. Investments in Human Capital
Education and the abilities it develops create a smarter and more productive workforce, which leads to greater economic growth. Instructional Approach(s): The teacher should review the concept of investing in human capital with the students. GDP per capita (person)
Think, Pair, Share Examine the table below. In which country would you most prefer to live? Why? Least prefer? Why? Country Literacy GDP per capita (person) Life Expectancy Unemployment Rate Germany 99% $45,900 81 5% Guatemala 82% $7,500 72 4% Haiti 61% $1,800 64 41% Kenya 78% $3,100 40% Lebanon 94% $18,000 77 N/A Instructional Approach(s): The teacher should give students 1-2 minutes individually to look over the table and write down their responses. Then, have students get with a partner and share their responses. When ready, call on groups or students from the class to share their responses. The teacher should walk around to facilitate the discussions and redirect students as needed. When ready, click to the next slide to discuss the concepts of the slide. Based on current data taken from the CIA World Factbook in 2015
There is a relationship between literacy and human capital in termsof peoples ability to produce income and have a better life. Country Literacy GDP per capita (person) Life Expectancy Unemployment Rate Germany 99% $45,900 81 5% Guatemala 82% $7,500 72 4% Haiti 61% $1,800 64 41% Kenya 78% $3,100 40% Lebanon 94% $18,000 77 N/A Instructional Approach(s): The teacher should present the information on the slide and discuss some of the examples within the chart that illustrate the concept. Based on current data taken from the CIA World Factbook in 2015 Human Capital, Literacy Rate, and Standard of Living
If you can read, you can learn. If you can learn, you can improve your work skills, and get a better job that pays a better salary. If you have a better salary, you can improve your standard of living. A country that improves the literacy rate among its citizens will improve the standard of living within that country and improve its economy. Educated and skilled workers are an important factor in a countrys economic growth. Instructional Approach(s): The teacher should present the information on the slide Capital: Factories, Machinery, Technology, Roads, Equipment, etc.
Investment in Capital Capital: Factories, Machinery, Technology, Roads, Equipment, etc. Instructional Approach(s): The teacher should review the concept of investing in capital with the students. Investment in capital helps economic growth by providing workers with the best and newest tools which makes them more productive, and increases a countrys GDP. Instructional Approach(s): The teacher should review the concept of investing in capital with the students. Most European countries have good education systems and strong capital investment.
Instructional Approach(s): The teacher should present the information on the slide while the students record the information on their graphic organizer. GDP per capita (person)
What could the countries of Haiti and Kenya do to make their economies stronger and more like the economy of Germany? Country Literacy GDP per capita (person) Life Expectancy Unemployment Rate Germany 99% $45,900 81 5% Guatemala 82% $7,500 72 4% Haiti 61% $1,800 64 41% Kenya 78% $3,100 40% Lebanon 94% $18,000 77 N/A Instructional Approach(s): The teacher should pose the question to the class and either discuss the answer as a class, call on students, ask for volunteers, or allow students to briefly discuss their answer with a partner. Answer: Haiti and Kenya could invest more in capital [human and physical] which would help improve their economy, standard of living, and GDP in their countries. Natural Resources Natural resources are materials or substances that occur in nature and can be used for economic gain. Instructional Approach(s): The teacher should review the concept of natural resources with the students. Natural resources are the fuel for industry and a source of income when exported to other countries.
Instructional Approach(s): The teacher should review the concept of natural resources with the students. From our geography studies, which countries in Europe have many valuable natural resources?
Instructional Approach(s): The teacher should pose the question to the class and ask for student responses or call on students. When ready, click the mouse to reveal countries in Europe with valuable natural resources. Russia Germany United Kingdom Natural Resources in Europe
The UK (United Kingdom) has a successful economy in part because of its valuable reserves of coal, oil, and natural gas. Germany has a successful economy in part because of its valuable rivers, forests, and large deposits of coal and iron ore. Russia has many natural resources, but they are located in remote areas and it is difficult and expensive to collect them. Instructional Approach(s): The teacher should review the concept of entrepreneurship with the students. Entrepreneur: someone who has an idea for a good or service and takes the risks to produce it. They use human, capital, and natural resources to produce their product. The more entrepreneurs a country has, the higher the countrys GDP
Entrepreneurship creates jobs and better materials, products, technologies, etc. The more entrepreneurs a country has, the higher the countrys GDP Instructional Approach(s): The teacher should review the concept of entrepreneurship with the students. Investigating Entrepreneurship in Europe Activity
Instructional Approach(s): The teacher should facilitate the Investigating Entrepreneurship in Europe Activity [linked on the curriculum map]. Students read summary profiles of countries in Europe either in the computer lab or in the classroom to compare their level of entrepreneurship. Discuss the results of the investigation with the class. European countries do not have as much entrepreneurial activity as the United States because of high taxes, lots of regulations, and job security. Instructional Approach(s): The teacher should present the information on the slide while the students record the information on their graphic organizer. The EU is encouraging its members to reduce taxes and regulations on small businesses, and helping set up training programs on how to run a business. Gross Domestic Product (GDP)
Economic growth in a country is measuredby the countrys Gross Domestic Product (GDP) in one year Instructional Approach(s): The teacher should review the concept of Gross Domestic Product (GDP) with the students. Gross Domestic Product (GDP)
GDP = the total of goods and services produced in one year within a country Instructional Approach(s): The teacher should review the concept of Gross Domestic Product (GDP) with the students. GDP per capita is a measure of the total output of a country that takes the GDP and divides it by the number of people in the country. Instructional Approach(s): The teacher should review the concept of Gross Domestic Product (GDP) with the students. Get with a seat partner. Each partner should share a 1-2 sentence explanation of GDP.
Instructional Approach(s): Have students turn to a partner and discuss the question on the slide. Partners can be determined by the students or the teacher can provide more specific directions such as turn to the person directly in front/behind you or to the right/left of you, etc. It may be necessary to have a group of three if you have an uneven number of students. Do not allow more than 30 seconds to 1 minute of discussion time. The teacher should be walking around listening and redirecting discussions as needed. The teacher can briefly discuss student responses. Economic growth is usually measured by calculating the percent increase in GDP from one year to the next. This is known as the GDP Growth Rate. Instructional Approach(s): The teacher should review the concept of Gross Domestic Product (GDP) with the students. GDP per capita and GDP growth rate can be useful when comparing one country to another because it shows the relative performance of the countries. Instructional Approach(s): The teacher should review the concept of Gross Domestic Product (GDP) with the students. GDP Review Videos [select one]
Gross Domestic Produce: The Economic Lowdown [7:51] Instructional Approach(s): The teacher can select one of the videos to review the complex topic of GDP with students. A video is not necessarily, but may be needed to refresh the students knowledge of GDP. What Exactly is GDP? [from economics unit] GDP per capita (person)
Think, Pair, Share Examine the table below. Which country has the strongest economy? Why? Weakest? Why? Country GDP per capita (person) Growth Rate Germany $45,900 1.6% Italy $35,500 -0.4% Russia $24,800 .06% Ukraine $8,700 -6.8% United Kingdom $39,500 2.6% Instructional Approach(s): The teacher should give students 1-2 minutes individually to look over the table and write down their responses. Then, have students get with a partner and share their responses. When ready, call on groups or students from the class to share their responses. The teacher should walk around to facilitate the discussions and redirect students as needed. Answers: Germany and/or the UK have the strongest economies because they both have good GDP per capita and both have growing economies. Ukraine has the weakest economy because they have the lowest GDP by a large scale and their economy is actually getting worse because they have a negative growth rate. Countries such as Germany and the United Kingdom have two of the strongest economies in Europe; therefore, they have high GDPs. Instructional Approach(s): The teacher should present the information on the slide while the students record the information on their graphic organizer. Other European countries such as Russia and the Ukraine are slowly transitioning from a command economy (during the Soviet Union era), so they have lower GDPs. Economic Factors Use the Index of Economic Freedom to compare countries of Europe to the U.S. Instructional Approach(s): The teacher should use the Index of Economic Freedom to compare countries of Europe to the U.S. The teacher may want to just compare the rankings and not the actual score. For example, the U.S. is ranked 12th in the world for economic freedom. The teacher may also want to stress that the Index of Economic Freedom includes more than just entrepreneurship and freedom to do business. The teacher can use details from the site to give more explanation to the factors included for the total ranking if desired. Summarizer Instructional Approach(s): Each student should complete the summarizer. The teacher may opt to have students answer all of the questions or possibly 1-5 or number 6. The teacher should use the summarizer to determine the level of student mastery and if differentiation is needed.