THE ROLE OF THE U. S. IN A GLOBAL ECONOMY TEXAS COUNCIL ON ECONOMIC EDUCATION LAURA EWING ALLEN PARKWAY, HOUSTON,TX

TCEE Teaches teachers who teach students who are the future of Texas Provides interesting hands-on lessons that develop critical thinking skills for students in Economics, Social Studies, Math, and Career/Technical Education classes.

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10 week Student Session 10 Week Student Session Fall and Spring Prizes for Regional Winners Teams of 4 to 5 students Teaches math, investments, decision-making

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TEKS FOR U.S. HISTORY POST RECONSTRUCTION (13) Geography. The student understands the causes and effects of migration and immigration on American society. The student is expected to: (A) analyze the causes and effects of changing demographic patterns resulting from migration within the United States, including western expansion, rural to urban, the Great Migration, and the Rust Belt to the Sun Belt; and (B) analyze the causes and effects of changing demographic patterns resulting from legal and illegal immigration to the United States.

TEKS FOR U.S. HISTORY POST RECONSTRUCTION (15) Economics. The student understands domestic and foreign issues related to U.S. economic growth from the 1870s to The student is expected to: (A) describe how the economic impact of the Transcontinental Railroad and the Homestead Act contributed to the close of the frontier in the late 19th century; (C) explain how foreign policies affected economic issues such as the Chinese Exclusion Act of 1882, the Open Door Policy, Dollar Diplomacy, and immigration quotas;

TEKS FOR WORLD HISTORY (15) Geography. The student uses geographic skills and tools to collect, analyze, and interpret data. The student is expected to: (A) create and interpret thematic maps, graphs, and charts to demonstrate the relationship between geography and the historical development of a region or nation; and (B) analyze and compare geographic distributions and patterns in world history shown on maps, graphs, charts, and models. (16) Geography. The student understands the impact of geographic factors on major historic events and processes. The student is expected to: (C) interpret maps, charts, and graphs to explain how geography has influenced people and events in the past.

TEKS FOR WORLD HISTORY (1) History. The student understands traditional historical points of reference in world history. The student is expected to: (F) identify major causes and describe the major effects of the following important turning points in world history from 1914 to the present: the world wars and their impact on political, economic, and social systems; communist revolutions and their impact on the Cold War; independence movements; and globalization.

TEKS FOR GEOGRAPHY (5) Geography. The student understands how political, economic, and social processes shape cultural patterns and characteristics in various places and regions. The student is expected to: (A) analyze how the character of a place is related to its political, economic, social, and cultural elements; and (B) interpret political, economic, social, and demographic indicators (gross domestic product per capita, life expectancy, literacy, and infant mortality) to determine the level of development and standard of living in nations using the terms Human Development Index, less developed, newly industrialized, and more developed. (6) Geography. The student understands the types, patterns, and processes of settlement. The student is expected to: (A) locate and describe human and physical features that influence the size and distribution of settlements; and (B) explain the processes that have caused changes in settlement patterns, including urbanization, transportation, access to and availability of resources, and economic activities.

TEKS FOR WORLD GEOGRAPHY (7) Geography. The student understands the growth, distribution, movement, and characteristics of world population. The student is expected to: (A) construct and analyze population pyramids and use other data, graphics, and maps to describe the population characteristics of different societies and to predict future population trends; (B) explain how political, economic, social, and environmental push and pull factors and physical geography affect the routes and flows of human migration; (C) describe trends in world population growth and distribution; and (D) examine benefits and challenges of globalization, including connectivity, standard of living, pandemics, and loss of local culture.

TEKS FOR WORLD GEOGRAPHY (11) Economics. The student understands how geography influences economic activities. The student is expected to: (A) understand the connections between levels of development and economic activities (primary, secondary, tertiary, and quaternary); (B) identify the factors affecting the location of different types of economic activities, including subsistence and commercial agriculture, manufacturing, and service industries; and (C) assess how changes in climate, resources, and infrastructure (technology, transportation, and communication) affect the location and patterns of economic activities.

TEKS FOR GOVERNMENT (6) Economics. The student understands the relationship between U.S. government policies and the economy. The student is expected to: (A) examine how the U.S. government uses economic resources in foreign policy; and

TEKS FOR ECONOMICS/ FREE ENTERPRISE (4) Economics. The student understands the issues of free trade and the effects of trade barriers. The student is expected to: (A) compare the effects of free trade and trade barriers on economic activities; (B) evaluate the benefits and costs of participation in international free-trade agreements; and

TEKS FOR ECONOMICS FREE ENTERPRISE (10) Economics. The student understands key economic measurements. The student is expected to: (A) interpret economic data, including unemployment rate, gross domestic product, gross domestic product per capita as a measure of national wealth, and rate of inflation; and

PLACES AND PRODUCTION SOURCE: GEOGRAPHY FOCUS ON ECONOMICS

WHAT DO THESE MEAN? GDP GNP

DEFINITIONS GDP: THE TOTAL MARKET VALUE OF ALL FINAL GOODS AND SERVICES PRODUCED IN AN ECONOMY IN A GIVEN YEAR. GNP: THE TOTAL MARKET VALUE OF ALL FINAL GOODS AND SERVICES PRODUCED BY AN ECONOMY IN A GIVEN YEAR

WHY FINAL VALUE? VALUE OF SUGAR, FLOUR, EGGS VALUE OF FINISHED PRODUCT: COOKIES WHY?

WHICH COUNTRY IS RICHER? COUNTRY A GDP $100,000,000 COUNTRY B GDP $200,000,000

WHICH COUNTRY IS RICHER? GDP COUNTRY A $100,000,000 COUNTRY B $200,000,000 POPULATION COUNTRY A = 1,000,000 PEOPLE COUNTRY B = 3,000,000 PEOPLE

PER CAPITA GDP THE TOTAL MARKET VALUE PER PERSON OF ALL FINAL GOODS AND SERVICES PRODUCED IN AN ECONOMY IN A GIVEN YEAR. What is U.S? What is Texas GSP?

WHAT IS U.S. GDP VS. TX GSP? U.S $46,459 $47,015 $45,793 $47,153 Source: U.S. $47,482 #1 DC $174,500 # 2 Delaware $ 69,667 #24 Texas $ 45,940 #50 Idaho $ 34,250

ACTIVITY 1: GDP PLEASE READ THE ARTICLE WHAT IS THE DEFINITION OF GDP HERE? WHAT ROLE DOES MEASURE OF VALUE PLAY? WHAT IS DOUBLE COUNTING? WHAT ARE FLOW OF PRODUCT APPROACH AND EARNINGS AND COST APPROACH?

GDP GDP = C + I + G + (X-M) C = CONSUMERS I = INVESTMENTS G = GOVERNMENT EXPORTS = EXPORTS – IMPORTS U. S. POPULATION IN 1993 = $24,683 WHAT DOES GDP NOT TELL US?

WHAT IS A CHOROPLETH MAP? ACTIVITY 2 WHAT ARE THE CHARACTERISTICS?

SOUTH AMERICAN MAP THE GDP PER CAPITA OF CANADA IS BETWEEN $_____ AND $_____. FOUR COUNTRIES WITH GDP PER CAPITA BETWEEN $15,000 AND $19,999 ARE: THE NATIONS OF SOUTH AMERICA HAVE GDP PER CAPITA BETWEEN $___ AND $___.

HOW WOULD YOU SET UP A CHOROPLETH MAP OF SOUTH AMERICA? PAGES 58 AND 59 ENRICHMENT: CHOOSE A COUNTRY WITH A LOW GDP AND ONE WITH A HIGH GDP. SET UP A CHOROPLETH MAP TO SHOW THE DIFFERENCE. ALSO, VISUALLY DEPICT THE CAUSES OF THESE DIFFERENCES.

Push and Pull Factors PUSHPULL 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.”

THE ECONOMICS OF IMMIGRATION EXAMINE AN ECONOMIC MYSTERY AS TO WHY SWEDISH FARMERS MIGHT HAVE COME TO THE U.S. IN 1880 STUDY VISUALS TO DETERMINE YOUR ANSWER USE SUPPLY AND DEMAND ANALYSIS TO EXPLAIN WHY THE KING TRIED TO CONVINCE THEM TO RETURN

Why Did Immigrants Come To The U.S. Late 1800’s? 1865 to 1920 = 28 million + to U.S. Sought higher standard of living Join family and friends Needed jobs due to surplus labor abroad Escape religious persecution Read advertisements of promises for better life Why do you think Swedish immigrants would have abandoned their lands in the late 19 th and early 20 th centuries to come to the U.S.?

DISCUSS VISUAL 22.I Read the advertisement distributed to farmers in Sweden in the 1880’s by representatives of Union Pacific Railroad. RR companies wanted to sell land, establish farmers in west who would sell and buy products distributed by the railroads. RR built ahead of demand. Use visual 22.1 and Activity 22.1 to read and answer the questions in context of the information given. Three rules of economic decision-making include that people: – Decide based on the most advantageous combination of costs and benefits – Respond to incentives in predictable ways – Must deal with the rule of the economic system and their influence on choices and incentives

VISUAL TWO REVIEW THE STATISTICS ESTIMATE HOW MANY IMMIGRANTS ARRIVED IN THE U.S. BETWEEN WHAT HAPPENED IN THE 1870’S AND 1880’S AND THAT HAD AN IMPACT ON IMMIGRATION?

REMINDERS THE MARKETS ALLOCATE SCARCE RESOURCES. WHAT ARE THE SCARCE RESOURCES HERE? WHAT ROLE DO IMMIGRANTS PLAY? WHAT ROLE DO EMPLOYERS PLAY?

VISUAL 22.2: MIGRATION TO THE UNITED STATES WHAT MIGHT HAVE BEEN PUSH FACTORS? WHAT MIGHT HAVE BEEN PULL FACTORS? WHAT WERE THE EXPECTED BENEFITS AND COSTS FOR THE SWEDISH FARMERS? IF YOU HAD LIVED THEN, WOULD YOU HAVE MIGRATED TO THE U.S? EXPLAIN.

WHAT CAUSED A RETURN TO SWEDEN? WHY WOULD SUCCESSFUL SWEDISH FARMERS DECIDE TO RETURN TO SWEDEN? VIEW VISUAL 3 P5 P4 P3 P2 P1 Q1 Q2 Q3 Q4 Q5 DEMAND SUPPLY 1 SUPPLY 2

CLOSURE IN WHAT WAYS CAN IMMIGRATION BE VIEWED AS ACTION TAKING PLACE WITHIN AN INTERNATIONAL MARKET OF BUYERS AND SELLERS? WHY DID IMMIGRANTS COME TO THE UNITED STATES?

FOCUS: GLOBALIZATION

 1801 Allen Parkway  Houston, TX  

 Human capital  Skilled workers  Unskilled workers  Emigration  Immigration  Brain drain

 Why do people migrate?  What are the concerns about immigration?  What are the concerns about emigration?

 1. How and why do people react to incentives?  2. What role do incentives play?  3. What determines the income people earn?

 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

 1. Do you know anyone who was born in a different country?  2. Was anyone in your family born in a different country?

 Melting pot  Salad bowl  US 31 million born elsewhere  11 % of US population  Define: Emigration & Immigration  Why do people come to the US?

 What are three facts that you can learn from the chart?  Summarize the point of the chart  Continue looking at the other charts

 Why do people need to be related to a citizen or resident?  Why else is it difficult to immigrate?

 Doctor  Teacher  Construction worker  Agricultural worker  Computer programmer

 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.”

 What is a visa?  What are three facts you can learn from the chart?  How would you summarize the point of the chart?

 Permanent residence status  Temporary Worker Visas

 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?

 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.

 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

 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?

 What are the advantages and disadvantages of allowing more unskilled immigrants into the United States?  What are the advantages and disadvantages of skilled workers?

 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?

 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?

 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

 Attract so many workers, both skilled and unskilled?  Offer higher wages than many other countries?

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

 What do you know about the pros and cons of Globalization?  Please read your part to yourself. Make a poster that shows your arguments. Draw a picture and list words/phrases that describe your viewpoint. You will hold this up during your presentation.  You will participate in a production in which you will portray your character’s viewpoint and personality. Hold you poster up for all to see.

 Use the chart to jot down notes about the positions that others played.  Discuss the viewpoints in small groups and continue to complete your chart.  Your group will make large protest posters.  What is the point of the lesson?

 What do you look for when you buy clothes and shoes?  Look at your clothes label and determine where your clothes are made.  Using your handout, find and record three different ways to view sweatshops.  Which position best represents you? Why?

 Thank you for attending today!  Please complete your evaluation.  Please pick up your pin drive as you leave. Laura Ewing Texas Council on Economic Education 1801 Allen Parkway, Houston

PRESENTER LAURA EWING TEXAS COUNCIL ON ECONOMIC EDUCATION 1801 ALLEN PARKWAY HOUSTON