L.15 - Global Trade

Trade of readymade garments, Export markets can avail, by study of colours, shapes, sizes and prices that prevail.

UDYAM SHASTRA- Chapter 07, Verse 23

Key Objectives:

Reading this module and doing the students activities will enable the students to:

• • Define import and export

  • Learn that different countries use different currencies.

  • Understand the aspects of global trade.

Enterprise Concepts

Import: Imports are goods and services that originate in other countries and are bought by people in our country.

Export: Exports are goods and services produced in our country that are purchased by people from other countries.

Trade: Trade is the exchange of goods and services between people.

Domestic trade: Trade within the country is called domestic trade.

Global trade: Trade with other countries is called global trade.

Enterprise Skills:

The student 'Activities' in each lesson are designed to clarify the ENTERPRISE CONCEPTS of the lesson and develop some ENTERPRISE SKILLS (E.SKILLS). The E.SKILLS included in a lesson may not be exhaustive, but are indicative.

E.SKILLS stated in a lesson elsewhere may also get addressed through the activities of a particular lesson.

Some useful E.SKILLS are dealt with below:

Relate new information to prior knowledge: An entrepreneur is an avid learner. Everyday he reads, sees and hears new things . In order to learn from these, he should correlate them to his prior knowledge and experience. This will help him to expand his plans to new perspectives..

Perseverance: The refusal to quit willingness to keep goals in sight and work towards them, despite any obstacles is Perseverance.

Activities:

Activity 1 - FOREIGN MADE, GAME.

Instruction To Students

• • The students should operate in their groups and make a list of items, which they are using like pens, calculator etc. that are imported from other countries.

  • The students should list items that they use at home or office that are imported. These could include TV, remote control, camera etc.

  • The students should identify or name, to their best knowledge the country from which, each of these items have been imported. They should also write in the remarks column why they feel this item was imported from that country.

• Is this product a specialty of this country?

• Is it that the price of the imported product is very low compared to local products?

• Is it that the quality of the product is very high?

• Is it that the people of that country have some special skill to make the product?

• Is it that some natural resources are only found in that country?

• Is it because that country has necessary level of technology to manufacture the product?

• Is it that there is no competition for that product in our country?

• Is it that country has got much better distribution system in our country than what local enterprises can provide?

• After completing the activity, each group should present and share its main discussion points with the rest of the class.

ACTIVITY 2: MAKE A GLOBAL TRADE PLAN

Instruction To Students

• The student should refer to the map of the world.

• The student should identify on the map the countries whose names appear in their activity 1 work sheet. The students should then answer the questions in the worksheet.

• After completing the activity, each group should present and share its main discussion points with the rest of the class.

WORK SHEET:

01. Which countries from your list appears in the following continents?

Asia :____________________________________________________________________________

North America : __________________________________________________________________

South America : __________________________________________________________________

Africa : __________________________________________________________________________

Europe : _________________________________________________________________________

Australia , New Zealand : __________________________________________________________

02. Further imagine that you are living in one of the countries and planning to sell your product or service to some other country.

Answer the following questions for your business. Use the Global Trade Plan

Flow-Chart to help you.

2.1 What is the name of your country?

2.2 Which other country lies in the continent of your country?

2.3 Which country do you want to do Global trade with?

2.4 What product or service would you like to sell to other country?

2.5 What aspects will you consider while doing your global trade?

______________________________________________________________________________________

WORLD MAP:

ACTIVITY 3: WHAT FOREIGN EXCHANGE DO I PAY?

Instruction To Students

• • • See the pictures of currency notes and identify the Country, Currency and Amount. Also observe and note the coins of other countries.

    • Read the case study given below.

    • After completing the activity, each group should present and share its main discussion points with the rest of the class.

Enterprise and Community Diagram

Country---------- Currency--------- Amount ----------

Country---------- Currency--------- Amount ----------

Country---------- Currency--------- Amount ----------

Country---------- Currency--------- Amount ----------

CASE STUDY:

Shantanu started his business of agricultural repair services after completing his vocational course. Slowly his business grew and of late he has entered into export-import of agricultural implements. Recently Shantanu went on a world tour to study the products and services that may be useful to him in his business. He purchased one sample of each from different countries as shown in table below. Help Shantanu to calculate ‘Foreign Exchange he must pay ‘ for his imports.

Instruction To Students

• • • • The students should use the exchange rates given to find out how much ‘foreign exchange’ Shantanu had to pay for each item of import.

      • After completing the activity, each group should present and share its main discussion points with the rest of the class.

LESSON INDEX