Active learning ideas
International trade is the lifeblood of the Irish economy. This topic explores why countries trade, focusing on the theories of Absolute and Comparative Advantage. Students learn how specialization and trade allow countries to consume beyond their production possibility frontiers, increasing global efficiency.
Activity 01
Students are divided into 'countries' with different resources (paper, scissors, pens). They must produce specific 'goods' and trade with others to meet their needs, demonstrating how trade increases total output.
Why do countries engage in international trade?
Activity 02
Students brainstorm products Ireland is famous for exporting. They then work in pairs to identify the specific factors (e.g., climate, educated workforce) that give Ireland a comparative advantage in those areas.
How does comparative advantage lead to global efficiency?
Activity 03
A debate on whether Ireland should protect local industries from cheap imports. Students must use economic terms like 'tariffs,' 'quotas,' and 'infant industries' to support their arguments.
What are the risks of over-reliance on multinational corporations?
A few notes on teaching this unit
Watch Out for These Misconceptions
A country should only trade if it is the best at producing something (Absolute Advantage).
Comparative advantage shows that trade is beneficial even if one country is better at everything, as long as opportunity costs differ. A simple numerical example with two students 'producing' homework and chores helps clarify this.
Trade always benefits everyone within a country equally.
While trade grows the overall economy, specific industries may decline due to foreign competition. A role play representing 'winners' (exporters) and 'losers' (declining industries) helps students see the social complexities of trade.
Methods used in this brief
Exchange Rates and Competitiveness
Analysing how currency fluctuations impact import and export prices, and overall national competitiveness.
8 methodologies
Globalisation and Multinational Companies (MNCs)
Assessing the impact of globalisation and foreign direct investment (FDI) on the Irish economy and employment.
8 methodologies