WHAT IN THE WORLD WERE THEY THINKING????

FOCUS: GLOBALIZATION

TEXAS COUNCIL ON ECONOMIC EDUCATION

Laura Ewing/President and CEO 1801 Allen Parkway Houston, TX 77019 713.655.1650 www.economicstexas.org

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WHAT IN THE WORLD WERE THEY THINKING?

How did geography, history, government, economics and history impact the thinking and actions of humans? The session will provide teachers with economic based lessons on how natural resources, politics, and historical events impacted decision making.

IDEAS THAT CHANGED THE WORLDCONCEPTS

Geography•Standard of Living•Interaction with the physical environment

Economics•Technological change•Productivity•Capital goods •Human Capital•Standard of living

WHAT IS PRODUCTIVITY?•What was The Little Red Hen story about?•If it took 8 hours to bake 8 loaves, how many can she bake in 1 hour?•8X = 8 X = 1 loaf of bread•Productivity = the amount of good or service a worker can produce in a period of time.

THE HEN BECOMES MORE PRODUCTIVE

If the number of workers remains the same, what is needed to increase productivity?•Technology and capital goodsWhat are the factors of production?•Land or natural resources•Labor•Capital

VISUAL 8.1What happened to the productivity of these products and why?

As production increases, what happens to prices?

What is the impact on standard of living?

PROBLEM SOLVING1. What problem needed to be solved?2. Who came up with a solution?3. What was the solution?4. How did this solution affect productivity?

1. Change in technology?2. New capital good?3. Improve people’s education or health?

5. How did the solution allow people to overcome challenges presented by the physical environment?

6. How did this solution affect people’s stand of living?

7. How did this solution affect people’s quality of life?

FINNISH TECHNOLOGY AWARD FOUNDATION

…”Promote people’s quality of life, are based on human values and encourage sustainable economic development”

Who would you nominate based on 8.3 criteria? Why?Make a poster to present their candidateJudge each other’s nominations with sticky notes

THE CANDIDATES ARE…•Double Bubbler•Barbed Wire •Penicillin•Telephone•Self-Polishing Steel Plow•Dynamite

ASSESSMENTBrainstorm a list of new inventionsChoose one and write a newspaper story and headline about it

Paragraph 1• Who developed the invention?• What does it do or how is it used?• When was it developed?• Where was it developed?• Why was it developed?

•Paragraph 2• How does the invention increase productivity?• How does it change the environment or allow people to

overcome challenges in the environment?• How does it affect the people’s standard of living?• How does it improve the quality of life?

GLOBALIZATION: ECONOMIC GROWTH Focus: Globalization (page 211)

Economic growth is a sustained increase in a nation’s production of goods and services.

If the production of goods and services increases faster than a nation’s population, GDP per capita increases and, on average, the people of that nation have more to consume, increasing their material standard of living.(3)

(3) Voluntary National Content Standards in Economics. National Council on Economic Education, New York, NY, 1997, pp. 29, 35-36.

WHAT IS GLOBALIZATION?“…refers to the worldwide phenomenon of technological, economic, and cultural change, as brought about by expanding facilities for intercommunication and interdependency between traditionally isolated cultures.”

“The terms refers to the overall integration, and resulting increase in interdependence, among global actors, be they political, economic, or otherwise.”

A.T. KEARNEY/CARNEGIE GLOBALIZATION INDEX (GI)

1.Economic Integration: Trade and Foreign direct investment

2.Personal: telephone, travel, remittance/personal transfers

3.Technological connectivity: Internet users, Internet hosts, secure servers

4.Political Engagement: international organizations, U.N. peacekeeping, treaties, government transfers

IS THE U.S. GLOBAL OR ISOLATED?

Use the charts and graphs on pages 217, 220, 221 and the quote above to determine if the U. S. is a significant player in the global economy.

WHY DO PEOPLE MOVE?Geography ConceptsMigrationImmigrantsPull FactorsPush Factors

EconomicsCostsBenefitsDecision Making

ENGAGE

1.Have you ever moved?

2.What was (were) the distance(s) of your move(s)?

VISUAL 4.1GEOGRAPHIC MOBILITY

What is significant about each figure and why do you think these changes happened?•Figure 1?•Figure 2?•Figure 3?

TERMS•Migration•Immigrants•Emigrants•Benefits•Costs•Push and Pull

COSTS AND BENEFITS?BABYSIT FOR $6.00 FOR UNRULY

KIDS OR BE WITH FRIENDS?

Costs Benefits

PUSH AND PULL FACTORSPUSH PULL

Costs of present location that drive people away

Benefits of new location because it has advantages

“In 2002 the United Nations estimated that around 175 million people, or about 3 % of the world’s population, resided in a country different from their country of birth.”

REASONS FOR MIGRATION1.You will be assigned one card from

Activity 4.1.2.You will answer questions on Activity

4.2.3. Complete the chart based on

reading.Push Factors for Migration

Pull Factors for Migration

WHO IS ALLOWED TO IMMIGRATE INTO THE UNITED STATES?

“Immigration data were collected from U. S. Department of Homeland Security’s Office of Immigration Statistics based on the major legal-status categories available to migrants who apply to enter the United States.”• Sponsorship by a relative • Request for asylum• Refuge to avoid persecution

QUESTIONS1. What was the largest number of people to migrate to the U. S. in fiscal year 2002?2. Under what legal category did the majority of these people apply to enter the U. S.?3.Other country’s per capita GDP in

2003 was $9,000. 4.Per Capital GDP in U. S. in 2003

$37,800.5.What does this suggest?6.Complete Activity 4.4 and add 4 more

countries.

CHECK FOR UNDERSTANDING

Complete Activity 4.5. What are the costs and benefits?What would you decide?

VOCABULARY AND CONCEPTS Human capital Skilled workers Unskilled workers Emigration Immigration Brain drain

FOCUS: LET’S BEGIN Why do people migrate? What are the concerns about

immigration? What are the concerns about

emigration?

CONTENT STANDARDS 1. How and why do people react to

incentives? 2. What role do incentives play? 3. What determines the income people

earn?

OBJECTIVES

1. Explore economic incentives that lead to migration, both economic and non-economic

2. Describe the difference between skilled and unskilled workers and the effects of immigration on both.

3. What are the economic effects of immigration 4. Define/discuss cause and effect of brain drain 5. Illustrate impact of immigration on wages

using supply and demand diagram

GEOGRAPHY TEKS

6a. Locate and describe human and physical features that influence the size and distribution of settlements

6b. Explain the processes that have caused changes in settlement patterns including urbanization, transportation, access to and availability of resources and economic activities.

STUDENT FOCUS 1. Do you know anyone who was born

in a different country? 2. Was anyone in your family born in a

different country?

UNITED STATES: NATION OF IMMIGRANTS

Melting pot Salad bowl US 31 million born elsewhere 11 % of US population Define: Emigration &

Immigration Why do people come to the US?

VISUAL 1: U.S. IMMIGRANTS BY CLASS OF ADMISSION, 2004

What are three facts that you can learn from the chart?

Summarize the point of the chart Continue looking at the other charts

WHY IS IMMIGRATION TO US DIFFICULT?

Why do people need to be related to a citizen or resident?

Why else is it difficult to immigrate?

WHO SHOULD BE ALLOWED TO IMMIGRATE TO THE UNITED STATES? Doctor Teacher Construction worker Agricultural worker Computer programmer

WORKERS What is the difference between skilled

and unskilled workers? “Most countries have adopted

immigration policies that are at least partly based on workers’ occupation or skill level.”

VISUAL 2: VISAS What is a visa? What are three facts you can learn from

the chart? How would you summarize the point of

the chart?

WHAT ARE THE DIFFERENCES BETWEEN -

Permanent residence status Temporary Worker Visas

ECONOMIC REASONS FOR IMMIGRATION INTO THE UNITED STATES ARE –

WHAT IS HUMAN CAPITAL? What impact do immigration and

emigration have on human capital in a market?

Why is human capital important in a global economy?

What role do wages play with immigration?

ROLE PLAY: 20 MINUTES You will be assigned a particular role from

Activity One. (pages 190 to 195) Follow the instructions on page 188:

Play the role but you can improvise Interview 5 people to find out how each has

been affected by migration. Would they agree or disagree with laws to limit immigration?

As you interview, complete the chart on page 189

Summarize the most important statements Decide whether or not each would favor laws

to make migration easier.

DISCUSSION Based on what you have learned, discuss

who gains and who loses from immigration? Use these terms as you discuss your

answers – Host country home, source, native country Remittances (cards 9 and 14) – transfer Returnees - reverse immigration

WHO IS HELPED? WHO IS HURT? Why is immigration restricted in the

US? Discuss Visual 3 Why does the United States allow

immigration with the “negative” impact displayed on

Visual 3?

UNSKILLED WORKERS What are the advantages and

disadvantages of allowing more unskilled immigrants into the United States?

What are the advantages and disadvantages of skilled workers?

COMPARE AND CONTRAST

1. Do you believe that the benefits of immigration by skilled workers are greater than the benefits of immigration by unskilled workers?

How do you contrast the benefits of the immigration of skilled workers with the costs of emigration by skilled workers?

How do you use the term brain drain in your examples?

BRAIN DRAIN

Read Visual 4 and describe the main points

Study Visual 5 and summarize the information

What do you notice about the information in Visual 6?

What is the message in Visual 7?

COMPARE AND CONTRAST

The supply and demand of labor in the host country before and after immigration with

The supply and demand of labor in source country before and after emigration

?WHY DOES THE UNITED STATES

Attract so many workers, both skilled and unskilled?

Offer higher wages than many other countries?

DEBATE

Using topics A, B, and C on page 177, debate the pros and cons of each issue one at a time.

GLOBALIZATION: WHAT IS OF INTEREST TO YOU?

•Which lessons are of particular interest to you?•Choose one and review it•Summarize the activity for others

TEXAS COUNCIL ON ECONOMIC EDUCATION

Laura Ewing/President and CEO 1801 Allen Parkway Houston, TX 77019 713.655.1650 www.economicstexas.org

AND THE POINT IS?