ECONOMY, COMMERCE AND FAIR TRADE

UNIT „ECONOMY, COMMERCE AND FAIR TRADE"

This lesson addresses economy, commerce and fair trade education education.

Global Trade

Learning outcome:

+ Analysis

Critical thinking

Open-mindedness

Creativity

Learning skills:

Reading & Writing

Look at the picture below and answer following questions:

●             What can you see?

●             What is inside the containers?

●             How did these containers end up here?

●             Why do we transport goods?

The author of the picture: Pat Whelen, taken from unsplash.com, https://unsplash.com/photos/RHC5ar0MFkE      

Learning outcome:

+ Analysis

Critical thinking

Open-mindedness

Creativity

Learning skills:

 Writing

2.1 You are an editorial board in the Economic Magazine. There is  a big demand from your readers on the information concerning choosing the suppliers. Write a short list of tips to be developed into the long article by the journalist.

2.2  Present your list to the class.

Learning outcome:

+ Analysis

Critical thinking

Open-mindedness

Creativity

Learning skills:

Reading & Writing

3.1. What do you think the “supply chain” means?

Read the article. 

Source: https://www.business.org/finance/inventory-management/how-to-choose-the-right-supplier-for-your-business/

3.2   Put following activities in the correct order:

Browse your options
Monitor supplier performance
Call for bids
Set your criteria
Evaluate bid submissions

3.3  TRUE / FALSE: Read the sentences. Guess if 1-9 below are true (T) or false (F).

Your business will struggle to deliver well-priced goods and services unless you find a reliable supplier.
All of the identified criteria are must-haves.
Checking reviews from others may be a reliable source of information on the supplier.
While calling for bids you should ask about potential suppliers’ raw materials planning and sourcing.
ISO compliance documentation or product sample can give you the certainty of Vendor‘s legitimacy
You shouldn’t negotiate contract terms once you choose a bid.
You should focus on writing the contract on your own because you are an expert in your own case.
You can terminate your contract if the supplier regularly ships orders late or sends incomplete orders.
You can find a good supplier once you clearly define your needs up front, ask questions, and keep an open mind while evaluating bids.

3.4   Match following expressions with correct definitions:

Evaluate bid submissions
Monitor supplier performance
Set your criteria
Call for bids
Browse your options

Learning outcome:

+ Analysis

Critical thinking

Open-mindedness

Creativity

Learning skills:

Watching & Writing

Vocabulary

4.1          TRUE or FALSE. Guess if 1-6 below are T (true) or F (false)

NAFTA is a free trade agreement among the US, Canada and Mexico.
NAFTA has its pros and cons.
Avocados aren’t popular in Americans’ diet.
Avocados are grown in Canada and exported to US.
Cheaper Mexican labour means that jobs go to Mexico.
Entire shoe manufacturing town can be devastated by NAFTA.

Watch the video, if necessary use subtitles, or change the playback speed

https://www.youtube.com/watch?v=DwKR08t5BGA

4.2 Match the word with its meaning:

1. Income
2. Demand
3. Seasonally
4. Arrangement
5. Consumption
6. Banned
7. Tax
8. Threat
9. Manufacturing jobs

4.3 TRUE or FALSE: Read the headline. Guess if 1-8 below are true (T) or false (F).

1. Over the course of 20 years the consumption of avocados tripled. 
2. Free trade agreements eliminate taxes on goods imported from other countries. 
3. Historically free deals were among low-income countries. 
4. After NAFTA Americans started to eat also a lot of cucumbers and mangoes. 
5. Balance in composition of labour between the US and Mexico went off. 
6. Each country is equally good at making every product. 
7. NAFTA meant a little bit of benefit to a lot of people. 
8. Most Americans noticed the changes after NAFTA. 

4.4 SYNONYM MATCH: Match the following synonyms from the article.

1. Balance
2. Broadly
3. Core
4. Excited
5. Appealing
6. Huge
7. Deal
8. Devastated
9. Arrangement
10. Affect

4.1 Put these words into the spaces in the paragraph below.

Consumption, seasonally, imports, exploded, flat, available, access

NAFTA changed how Americans eat, one of the most successful Mexican (1) to the US is avocados. Avocado (2) in United States has (3) , going from one pound per person to 7 pounds over the course of twenty years. US production has been (4) , but Mexican production has been through the roof. Before NAFTA Americans didn’t eat a lot of avocados. They only had (5) to them from California and Florida and only (6) . Most of avocados in the world are grown in Mexico and for 80 years Mexican avocados were banned from the US. Americans didn’t even know they liked them, the NAFTA made them (7) all year round and it turns out Americans love avocados!

Learning outcome:

+ Analysis

Critical thinking

Open-mindedness

Creativity

Learning skills:

Reading & Writing

The materials are taken from: https://breakingnewsenglish.com/2011/201117-free-trade-deal.html

Read the article

Fifteen Asian and Pacific countries have signed the world’s biggest free trade deal. It is called the Regional Comprehensive Economic Partnership (RCEP). The countries include 10 Southeast Asian economies along with China, Japan, South Korea, Australia and New Zealand. These countries account for around 30 per cent of the global economy. The idea for the RCEP started in 2012. The governments have been talking to each other since then. China was key in pushing the deal forward to help economies during the coronavirus pandemic. An economics expert said: “COVID-19 has reminded the region of why trade matters and governments are more eager than ever to have positive economic growth.”

Leaders of the 15 governments believe the free trade deal will help their countries and the Asia-Pacific region. The Chinese Premier said: “The fact the RCEP has been signed after eight years of negotiations brings a ray of light and hope amid the clouds.” He added: “It clearly shows that multilateralism is the right way, and represents the right direction of the global economy and humanity’s progress.” South Korea said: “We believe that the RCEP, being the world’s largest free trade arrangement, represents an important step forward toward an ideal framework of global trade and investment.” It said the deal included, “a diverse mix of developed, developing and least developed economies.”

5.1  Match the word with its meaning

1. Paragraph 1

1. Include
2. Account
3. Global
4. Pandemic
5. Expert
6. Eager
7. Reminded

2. Paragraph 2

8. Region
9. Negotiations
10. Hope
11. Represents
12. Direction
13. Humanity
14. Framework

5.2 TRUE or FALSE: Read the headline. Guess if 1-8 below are true (T) or false (F).

1. Nearly a dozen countries signed a free trade deal.
2. Ten Southeast Asian countries signed the new free trade deal.    
3. The countries in the deal make up nearly a third of the global economy.  
4. China was reluctant to sign the deal.    
5. Countries talked about the deal for eight years.    
6. China’s Premier said the deal brings a laser beam of light.     
7. The Premier said the deal shows multilateralism is the wrong way.    
8. South Korea said all countries’ economies in the deal were developed.    

5.3 SYNONYM MATCH: Match the following synonyms from the article.

1. Comprehensive
2. Along with
3. Global
4. Key
5. Growth
6. Help
7. Right
8. Direction
9. Arrangement
10. Diverse

5.4          Put these words into the spaces in the paragraph below.

along, pushing , signed, eager, talking, include, expert, account

Fifteen Asian and Pacific countries have (1) the world’s biggest free trade deal. It is called the Regional Comprehensive Economic Partnership (RCEP). The countries (2) 10 Southeast Asian economies (3) with China, Japan, South Korea, Australia and New Zealand. These countries (4) for around 30 per cent of the global economy. The idea for the RCEP started in 2012. The governments have been (5) to each other since then. China was key in (6) the deal forward to help economies during the coronavirus pandemic. An economics (7) said: “COVID-19 has reminded the region of why trade matters and governments are more (8) than ever to have positive economic growth.”

fact, important, right, help, diverse, being, ray, progress

Leaders of the 15 governments believe the free trade deal will (9) their countries and the Asia-Pacific region. The Chinese Premier said: “The (10) the RCEP has been signed after eight years of negotiations brings a (11) of light and hope amid the clouds.” He added: “It clearly shows that multilateralism is the right way, and represents the (12) direction of the global economy and humanity’s (13) .” South Korea said: “We believe that the RCEP, (14) the world’s largest free trade arrangement, represents an (15) step forward toward an ideal framework of global trade and investment.” It said the deal included, “a (16) mix of developed, developing and least developed economies.”

5.1 Comprehension quiz

1. How many countries signed the free trade deal? ­­­­­­­­­­­­­­­ 
2. How many Southeast Asian nations signed the deal?  ­­­ 
3. How much of the global economy do the countries represent?  
4. When did talks about the deal first start?   
5. What positive thing did an economics expert say the region wants?  
6. What did China’s premier say the negotiations brought?  
7. What did China’s premier say multilateralism was?  
8. What is going in the right direction, besides the global economy?   
9. What is the deal an ideal framework of, besides global trade?  
10. What kind of mix of economies did South Korea say the deal was?

Fair Trade

Learning outcome:

+ Analysis

Critical thinking

Open-mindedness

Creativity

Learning skills:

Reading & Writing

1.1 TRUE or FALSE. Guess if 1-5 below are T (true) or F (false)  

1. Free trade agreement had a negative effect on both countries US and Mexico.
2. Small communities were taken into consideration while Mexican and American governments established the rules of free trade. 
3. A lot of economic and environmental problems we are dealing with right now resulted from free trade agreements. 
4. Fair trade is the movement of big organizations. 
5. Fair trade may be the answer to free trade. 

Watch the video, if necessary use subtitles, or change the playback speed

https://www.youtube.com/watch?v=VNPkiJrk_Bw

1.2  TRUE or FALSE. Guess if 1-7 below are T (true) or F (false)

1. Fair trade means that people are democratically organized and have control over their lives. 
2. A lot of times fair trade is a lie. 
3. In fair trade farmers do not own their organization. 
4. While being in fair trade farmers cannot plan a year ahead. 
5. Fairtrade premium is the fund that is spend for community needs
6. Fairtrade community may finance schools in their local environment. 
7. Every fair trade product comes from fair trade company. 

1.3 Make meaningful expressions by joining words

1. Fair
2. Long-term 
3. Raise 
4. Corporate 
5. Decent
6. Terms 
7. Make

1.4.   Match the word with its meaning:

1. Leverage
2. Shift
3. Subsidised
4. Go broken
5. Export market
6. Community 
7. Expand 
8. Crop
9. Aim

1.5 Put these words into the spaces in the paragraph below.

heart, collapse, slave, transform, equality, similar, terms of trade

I feel that if morality is not brought into the (1) of global trade there will be human (2) . From the 90ties to the present when factories moved out of US it goes somewhere else and (3) the people. We have to think of a way to (4) the industry, we have to use business principles for good to prove to the world that you can do business in a just way, you can do business and create more (5) for people. Free trade and fair trade might sound (6) but they are very different. Fair trade is a movement of people, farmers, consumers, businesses that aims at changing the (7) so that they become more dignified, more just, more equitable.

1.6. Watch the video one more time and compare Free trade and Fair trade. Fill in the table below by writing sentences / expressions in each row referring to four criteria.    

https://www.youtube.com/watch?v=VNPkiJrk_Bw

 

Free trade

Fair trade

1. Target groups

 

 

2. Values

 

 

3. Benefits

 

 

4. Decisions

 

 

Learning outcome:

+ Analysis

Critical thinking

Open-mindedness

Creativity

Learning skills:

Reading & Writing

Prepare a short speech based on the filled tables and video material provided above. Follow the requirements:  

●        Your speech should be a maximum of 5 minutes in duration.

●        Your speech should include the short description of two terms (free trade and fair trade) by referring to the four criteria given in the table.

●        Use vocabulary from the video and online exercises.

Learning outcome:

+ Analysis

Critical thinking

Open-mindedness

Creativity

Learning skills:

Reading & Writing

     Role play

You work in pairs, each of you has different role to play. Read about your role and do not reveal it to the partner before the activity starts.

 

Student A:

You are a farmer from Ethiopia. You grow coffee and you struggle with low prices and cannot afford decent living. You have heard about fairtrade and you know some farmers are successful in fair trade production. You would like to set up a cooperative in your neighbourhood. Not all farmers know the concept, convince them to join you and form a business together.

 

You may use following arguments:

 

1.       Coffee is one of the most valuable and widely traded agricultural products.

2.       It is mainly produced by smallholder farmers.

3.       The more lucrative export of green coffee – beans that have been processed ready for export and roasting – is only an option for farmers who are able to form co-operatives, purchase processing equipment and organise export, or hire a contractor to carry out these services.

4.       With Fairtrade, certified coffee producer organisations are guaranteed to receive at least the Fairtrade Minimum Price for their coffee.

5.       The Fairtrade Minimum Price for the coffee covers their costs of production and acts as a safety net when market prices fall below a sustainable level.

6.       There is an additional Fairtrade Premium to invest in business or community improvements, like schools, health-care etc.

7.       In 2018, certified coffee farmers earned an estimated €76.6 million in Fairtrade Premiums that were invested in farmer services and community projects.

8.       Fairtrade is an ethical brand with 25 years of experience in delivering real change to producer livelihoods.

9.       Fairtrade works with over 400 businesses, from retailers and global brands to small businesses.

10.   Consumers are eager to buy fairtrade products – they want to prove they are „good people“.

 

Some of the arguments taken from https://www.fairtrade.org.uk/farmers-and-workers/coffee/oromia-coffee-farmers-co-operative-union-ethiopia/

 

 

Student B:

You are a farmer from Ethiopia. You grow coffee and you do manage to keep an average standard of living. You came across the recent studies concerning the fair trade system and you cannot imagine yourself in such a structure. You do not want to join the fair trade movement.

 

You may use following arguments:

 

1.       Long-term studies compared conventional cofee growers and fairtrade coffee growers for 10 years – the results were not inspiring

2.       Coffee market is inherently unstable and characterised by wide fluctuations in price.There are many factors that influence the coffee market for example weather conditions, disease.

3.       Coffee has always been produced by smallholder farmers, not big corporations.

4.       It is extremely difficult for growers to predict their income for the coming season and budget for their household and farming needs. 

5.       You are not free to decide how to spend money – Coffee farmers must use at least 25 per cent of the Fairtrade Premium to enhance productivity and quality, for example by investing in processing facilities.

6.       It’s costly to join the network – 600 dollars in order to subscribe (application fee)

7.       Annual fee ranges 1300 to 4000 dollars

8.       You have to regularly undergo certification process, once you will not pass it you are out of the system

9.       There is no guaranteed buyer. There is no promise that there is a willing buyer on the market, some cooperatives search for years

10.   „Unfair coffee“ may be grown by fairtrade grower

11.   Most fairtrade coffee comes from relatively rich nations – for example Costarica or Ethiopia.  Those poorer sell for instance only 4% of the total fairtrade coffee (Tanzania)

12.   There is insufficient demand, it ends up in an convencional coffee market

13.   May promote inequality, already established growers are promoted, who do not live geographically far away from the buyer.

 

Some of the arguments were taken from:

https://www.youtube.com/watch?v=4HcUUD_PXrk  

https://www.youtube.com/watch?v=FoHOA8w4Asc

Learning outcome:

+ Analysis

Critical thinking

Open-mindedness

Creativity

Learning skills:

Reading & Writing

Take the quiz and check your knowlege of free trade and fair trade.

https://play.howstuffworks.com/quiz/fair-trade-quiz

Learning outcome:

+ Analysis

Critical thinking

Open-mindedness

Creativity

Learning skills:

Reading & Writing

Discuss the results. Answer the following questions:

·        What was your score?

·        Where did you fail?

·        Did you learn something new from the quizz? If yes, say what.

·        Did any information surprised you? If yes, which one.