Economics & Business · Year 10

Active learning ideas

Foreign Direct Investment (FDI)

Active learning helps students grasp Foreign Direct Investment because it turns abstract economic flows into concrete decisions with real stakes. When students analyze case studies, debate policies, or simulate investments, they see how global choices create local impacts.

• ACARA Content Descriptions
• AC9HE10K04

• 30–50 min
• Pairs → Whole Class
• 4 activities

Activity 01

• Jigsaw
• 50 min · Small Groups

Jigsaw: Australian Mining FDI

Divide students into expert groups to research one FDI case, like a Chinese firm's investment in Australian iron ore. Each group prepares a summary of motivations, host/home impacts, and policy roles. Groups then jigsaw to teach their case to new mixed groups, who compile a class chart.

Explain the motivations behind foreign direct investment decisions.

Facilitation Tip

For the Case Study Jigsaw, assign each group a specific angle (e.g., environmental impact, job creation) to research before presenting to peers.

What to look for

Pose this question to the class: 'Imagine you are the economic advisor for Country A, which is considering attracting FDI from a large technology company. What are the top three potential benefits and the top three potential drawbacks you would present to the government, and why?'

• Understand
• Analyze
• Evaluate
• Relationship Skills
• Self-Management

Activity 02

• Case Study Analysis
• 45 min · Whole Class

Policy Debate: Attract or Deter FDI

Assign half the class as host government advisors favoring FDI incentives, the other half opposing with regulations. Provide data on benefits/drawbacks. Teams prepare 3-minute arguments, then debate with audience voting and reflection on key questions.

Analyze the economic benefits and drawbacks of FDI for a host country.

Facilitation Tip

In the Policy Debate, provide a clear rubric with criteria for economic, social, and environmental impacts to guide students' arguments.

What to look for

Provide students with a short case study of a recent FDI project (e.g., a foreign tech company building a data center in Ireland). Ask them to identify: 1. The home country and host country. 2. At least two motivations for the investment. 3. One potential benefit and one potential drawback for the host country.

• Analyze
• Evaluate
• Create
• Decision-Making
• Self-Management

Activity 03

• Case Study Analysis
• 30 min · Pairs

FDI Flow Mapping: Pairs Analysis

Pairs select a host country and map recent FDI inflows using ABS or UNCTAD data. They identify motivations from news sources, plot trends on graphs, and discuss policy influences in a shared class document.

Evaluate the role of government policies in attracting or deterring FDI.

Facilitation Tip

During FDI Flow Mapping, have pairs use color-coded arrows to distinguish motivations from impacts on a world map.

What to look for

On an index card, have students write down one specific government policy (e.g., tax breaks, environmental regulations) that could either attract or deter FDI. They should then briefly explain how that policy might influence a company's investment decision.

• Analyze
• Evaluate
• Create
• Decision-Making
• Self-Management

Activity 04

• Case Study Analysis
• 40 min · Small Groups

Investment Pitch: Role-Play Simulation

Students role-play multinational executives pitching FDI to a host government panel. Pitches cover motivations and promised benefits; panels question drawbacks and vote. Debrief evaluates real policy criteria.

Explain the motivations behind foreign direct investment decisions.

Facilitation Tip

In the Investment Pitch simulation, give each student company a unique constraint (e.g., carbon footprint limits) to force creative problem-solving.

What to look for

Pose this question to the class: 'Imagine you are the economic advisor for Country A, which is considering attracting FDI from a large technology company. What are the top three potential benefits and the top three potential drawbacks you would present to the government, and why?'

• Analyze
• Evaluate
• Create
• Decision-Making
• Self-Management

A few notes on teaching this unit

Experienced teachers approach FDI by balancing global perspectives with local consequences, using case studies from familiar contexts like Australian mining to build relevance. Avoid treating FDI as a one-sided benefit; research shows students better retain nuance when they confront counterarguments directly. Use role-play to make abstract economic concepts tangible, as simulations help students see how decisions in boardrooms affect communities.

Successful learning looks like students moving beyond simple definitions to analyze trade-offs, use evidence to support claims, and connect global economic actions to local outcomes. They should be able to identify both benefits and costs for home and host countries.

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Watch Out for These Misconceptions

• During Case Study Jigsaw: Australian Mining FDI, watch for students assuming all jobs created are permanent.

  Use the case study materials to point out temporary construction jobs versus lasting employment, and ask groups to categorize job types in their presentations.

• During Investment Pitch: Role-Play Simulation, watch for students treating portfolio investment as equivalent to FDI.

  During the pitch, require students to demonstrate active management by explaining operational decisions, not just financial returns.

• During FDI Flow Mapping: Pairs Analysis, watch for students assuming home countries always benefit equally from outward FDI.

  Have pairs trace profit flows on their maps and discuss how repatriated earnings might reduce domestic reinvestment.

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Methods used in this brief

• Jigsaw
• Case Study Analysis