Lesson Notes By Weeks and Term - Senior Secondary 3

Term: 1^st Term

Week: 10

Class: Senior Secondary School 3

Age: 17 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Economics

Topic:-       Domestic and international trade II

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

1. Give reasons for trade protections
2. State the theory of comparative cost
3. Discuss the concept of globalization

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

NOTE

REASONS FOR TRADE PROTECTION

1. To protect infant industries
2. To generate revenue for the government
3. To discourage dumping
4. To protect from the importation of harmful products and substances
5. To correct the balance of payment deficit
6. To put in check the consumption pattern of the country

The Principle of Comparative Cost Advantage

The law or theory or principle of comparative cost advantage propounded by David Ricardo in 19^th Century, states that a country will be better off, if it specializes in the production of commodities in which it has the greatest comparative cost advantage over others and exchange them for commodities in which it has comparative cost disadvantage. This law is based on the premises of the law of opportunity cost.

A country is said to have comparative advantage over others in the production of a commodity in which it has the lowest opportunity cost than others. The real cost of production in terms of the alternative goods forgone is used in comparison with that of other nations.

The principle operates on some basic assumptions that:

1. There are only two trading countries
2. Only two items are produced
3. There is free flow and mobility of factors of production
4. There is no balance of trade between the two countries
5. There is no transport cost
6. Technology and costs are constant
7. Labour is the only factor of production

Based on these assumptions, the principle can be illustrated in three stages as follows:

1. Nigeria will forgo 15 bags of Cocoa to produce 1 bag of rice or forgo 1 bag of rice to produce 15 bags of Cocoa.
2. Thailand will forgo 5 bags of rice to produce 1 bag of cocoa or forgo 1 bag of cocoa to produce 5 bags of rice.

From the above, we can deduce that Nigeria has a comparative advantage in the production of cocoa while Thailand has comparative advantage to produce rice.

Stage II. With Specialization

Stage III. With Trade

From the tables,

1. The total production of the countries increased with specialization i.e Rice from the initial 110 bags to 200 bags and Cocoa from 170 bags to 300 bags.
2. The trading countries now enjoy improved or higher standard of living because they have more commodities than they could produce before trade.
3. The trade enhanced more efficient allocation of productive resources i.e. labour.

GLOBALIZATION

Globalization is the process of increasing interconnectedness and interdependence among people, businesses, and countries around the world. It involves the flow of goods, services, capital, information, and ideas across borders and the breaking down of barriers that prevent this flow.

Globalization can be seen in many aspects of modern life, such as the widespread availability of products from around the world, the ease of communication through technologies like the internet and social media, and the movement of people across borders for work or education.

While globalization has the potential to create new opportunities and improve living standards for people around the world, it can also bring challenges and risks, such as increased competition, inequality, and environmental degradation.

BENEFITS OF GLOBALIZATION

1. Decrease in the global poverty level
2. Availability of goods which improves the standard of living
3. Most countries become democratized as they are now receptive to human rights
4. It brings about a common language and understanding
5. It leads to reduction of inequality among nations due to economic expansion
6. The overall economic performance of countries are improved
7. Internal and external imbalances are drastically reduced

DISADVANTAGES OF GLOBALIZATION

1. Workers in wealthy countries believe their jobs are headed to poor countries while workers in poor countries work for relatively low wages
2. Uneven gathering of wealth
3. Environmental damages as a result of technological advancements

EVALUATION

1. Give four reasons for trade protections
2. State the law of comparative advantages using a typical example
3. Define globalizations
4. State three benefits and disadvantages of globalization

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively