Look at the following

infographics

Think pair share:What does the date show you on UK

exports?

TOPIC 1

PRODUCT OR MARKET CONDITIONS THAT MAY PROMPT A BUSINESS TO TRADE INTERNATIONALLY

WHY HAVE IMPORTS GROWN?

Learning Objectives by the end of this lesson students at ….

• Will be able to evaluate the impact of internationally trade on the business

Evaluation ~ GCE Grade A*

• Will be able to propose reasons for trading internationally

Synthesis~ GCE Grade A

• Will be able to analyse the reasons for trading internationally

Analysis ~ GCE Grade B

• Will be able to demonstrate understanding by using examples/cases

Application ~ GCE Grade C

• Will be able to explain the considerations of trading internationally

Comprehension ~ GCE Grade D

• Will be able to recall reasons a business will trade internationally

Knowledge ~ GCE Grade E

10

1

Success Criteria

The Supply Chain

The supply chain is the sequence of processes which starts with acquiring the most basic inputs and ends with delivery of the product to the customer

Production can be in-house but it can also be contracted out

Outsourcing = purchasing inputs from independent suppliers either in the same country or overseas. It can be components, complete products or services (IT)

Production

Different production locations can be used for each stage in the supply chain

Cost of production will depend on where production takes place

Sometimes a business will build their own factory abroad, by establishing a joint venture

Joint Venture = businesses in a collaborative relationship with a local producer

On your whiteboard write down:• What are the benefits of imports?

What are the benefits of imports?

Extension Task:

Are there any drawbacks of imports?

2 mins

Benefits of imports

When items are unavailable in the domestic economy Raw materials e.g. copper Agricultural products e.g. pineapples Manufactures with local skills not in the UK e.g. silk

Manufactures and services available in the domestic market but cheaper elsewhere. (e.g. Japanese electronics) Gives consumers more choice More competition, lower prices Raises standard of living (consumers have more

purchasing power)

Benefits of imports

When items are unavailable in the domestic economy Raw materials e.g. copper Agricultural products e.g. pineapples Manufactures with local skills not in the UK e.g. silk

Manufactures and services available in the domestic market but cheaper elsewhere. (e.g. Japanese electronics) Gives consumers more choice More competition, lower prices Raises standard of living (consumers have more

purchasing power)

Progress Arrow

On your whiteboard write down:• Reasons you think it may be easier to

trade internationally than in the past

Why do you think it is easier to trade now?

Extension Task:

Are there any issues that may make it more difficult to trade internationally?

2 mins

Communications

Advances in technology has made it easier to organise and co-ordinate business operations around the world

Cost of telecommunications has dropped in recent years, which would encourage trade

Able to participate in conference calls or use mobile phones

Computers and broadband have enabled information to be communicated quickly

Transport

Advances in transport and air travel means people move more freely around the world

Shipping containers have cut costs of shipping goods and reduced transit times (no need for labour intensive loading/unloading)

Air freight prices have fallen enough for some perishable products to be exported

Computerised data handling makes it easier and cheaper to track goods in transit

Against The Clock

You have 5 minutes in groups (before the sand

runs out!) to write on your whiteboards:

• The different reasons a business will seek an international market

Now Feedback to class

Task

Research Task

Mobile phones The mobile phone industry is growing

rapidly in developing countries (where there is no landline infrastructure) — the take-up of mobile phones in India is the fastest anywhere in the world.

You need to investigate why companies such as Vodafone and Nokia have chosen to target developing countries as a new source of revenue. The Oxfam website is useful, as is the Vodafone website.

Progress Arrow

Homework

Complete the research task

Plenary: Articulate!

Lesson Keywords

Supply Chain Outsourcing Globalisation

On your cards

Topic 1: Why have imports grown?

Write down: 2 or more things you found easy to

understand/ remember from the lesson

What did you find difficult to understand

Exit pass

Learning Objectives by the end of this lesson students at ….

• Will be able to evaluate the impact of internationally trade on the business

Evaluation ~ GCE Grade A*

• Will be able to propose reasons for trading internationally

Synthesis~ GCE Grade A

• Will be able to analyse the reasons for trading internationally

Analysis ~ GCE Grade B

• Will be able to demonstrate understanding by using examples/cases

Application ~ GCE Grade C

• Will be able to explain the considerations of trading internationally

Comprehension ~ GCE Grade D

• Will be able to recall reasons a business will trade internationally

Knowledge ~ GCE Grade E

10

1

Success Criteria