TERM – 1ST TERM
WEEK NINE
Class: Senior Secondary School 3
Age: 17 years
Duration: 40 minutes of 5 periods each
Date:
Subject: Geography
Topic: WORLD TRADE
SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to
- Explain trade and state the reasons for world trade.
- Account for the high volume of trade between Nigeria and developed countries with reference to world major shipping routes
- Discuss the factors limiting world trade
- Analyse the impacts of world trade on the development of Nigerian economy
INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers,
demonstration, videos from source
INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures
INSTRUCTIONAL PROCEDURES
PERIOD 1-2
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PRESENTATION
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TEACHER’S ACTIVITY
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STUDENT’S
ACTIVITY
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STEP 1
INTRODUCTION
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The teacher explains the meaning of Trade to the students and state the reasons for world trade
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Students in small groups, examine trade and highlight the reasons for world trade.
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STEP 2
EXPLANATION
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Teacher explains why there is high volume of trade between Nigeria and developed countries especially as regards major shipping routes
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Students in pairs, account for the high volume of trade between Nigeria and developed countries with reference to world major shipping routes
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STEP 3
DEMONSTRATIO
N
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Teacher discusses the factors limiting world trade and the impacts of world trade on the development of Nigerian economy
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Students as a class, brainstorm on the factors limiting world trade and dissect the impacts of world trade on the development of Nigerian economy
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STEP 4
NOTE TAKING
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The teacher writes a summarized note on the board
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The students
copy the note in
their books
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NOTE
WORLD TRADE
Trade refers to the exchange of goods and services between individuals, businesses, or nations. It is a fundamental economic activity that enables entities to obtain products they do not produce efficiently by relying on the comparative advantages of trading partners.
Reasons for World Trade
- Nations engage in trade to benefit from comparative advantage. This occurs when a country can produce a good or service at a lower opportunity cost than another country. By specializing in the production of goods in which they have a comparative advantage, countries can trade and both achieve greater overall efficiency.
- Countries may lack certain resources or have limited access to specific raw materials. Through trade, they can obtain these resources from other nations that have an abundance, allowing for more diversified and efficient production.
- Trade provides access to larger markets. Domestic markets may have limited demand, but by participating in international trade, businesses can reach a broader customer base, leading to increased sales and profits.
- Increased trade can lead to job creation. As businesses expand due to access to global markets, they may hire more workers to meet the demand for their products or services.
- International trade involves transactions in different currencies, contributing to foreign exchange markets.
- Trade can foster positive diplomatic relations between countries.
Reasons for the high volume of trade between Nigeria and developed countries (world major shipping)
The high volume of trade between Nigeria and developed countries can be attributed to several factors, particularly with reference to major shipping routes and global economic dynamics. The following are factors influencing this trade:
- Natural Resources and Commodities: Nigeria is rich in natural resources, including oil, natural gas, minerals, and agricultural products. Developed countries, which may lack these resources or have limited reserves, depend on trade with resource-rich countries like Nigeria to meet their energy needs and resource demands.
- Oil and Gas Exports: Nigeria is a major exporter of oil and natural gas. The global demand for energy, particularly in developed countries with industrialized economies, drives a significant portion of trade between Nigeria and these nations. Major shipping routes are essential for transporting oil and gas cargoes from Nigeria to global markets.
- Strategic Geographical Location: Nigeria's geographical location on the Gulf of Guinea positions it as a strategic hub for trade in West Africa. Major shipping routes pass through this region, connecting Nigeria to developed markets in Europe, North America, and Asia. This location enhances the accessibility and attractiveness of Nigeria for international trade.
- Infrastructure and Port Facilities: The development of infrastructure and modern port facilities in Nigeria facilitates efficient cargo handling and transportation. Well-established shipping routes connect Nigerian ports to major global trade hubs, facilitating the smooth flow of goods.
- Diverse Export Products: In addition to energy resources, Nigeria exports a range of products, including agricultural goods and solid minerals. The diversity of export products makes Nigeria an attractive trade partner for developed countries seeking various commodities.
Factors Limiting World Trade
The following are factors that put hindrance/limitations to world trade:
- Trade Barriers: Tariffs, quotas, and other protectionist measures imposed by countries limit the flow of goods and services across borders. These trade barriers hinder free trade and can lead to trade disputes.
- Non-Tariff Barriers: Non-tariff barriers, such as technical standards, licensing requirements, and sanitary regulations, can impede trade by creating obstacles for foreign businesses to access markets.
- Political Instability: Political instability and conflicts in certain regions can disrupt trade routes, deter investments, and create an uncertain business environment, limiting international trade.
- Exchange Rate Fluctuations: Currency exchange rate fluctuations can impact the competitiveness of exports and imports. Rapid and unpredictable currency movements make it challenging for businesses to plan and engage in international trade.
- Inadequate Infrastructure: Poor transportation, communication, and logistics infrastructure can hinder the efficient movement of goods and increase transaction costs, limiting the growth of international trade.
- Intellectual Property Concerns: Disputes over intellectual property rights, including patents, trademarks, and copyrights, can create barriers to trade, particularly in industries where innovation and technology play a crucial role..
Impacts of World Trade on the Development of the Nigerian Economy
- International trade has contributed to the economic growth of Nigeria by providing access to global markets for its exports, particularly oil and gas.
- Participation in world trade has facilitated the diversification of Nigeria's export base, reducing dependency on a few commodities and encouraging the development of other sectors.
- Nigeria earns significant foreign exchange through its exports, particularly oil. This revenue is crucial for financing imports, servicing debts, and supporting the stability of the national currency.
- World trade allows for the transfer of technology and knowledge, contributing to innovation and the development of more advanced industries in Nigeria.
- Increased trade can lead to job creation, particularly in sectors that experience growth due to increased export demand or industries that become more competitive globally.
- Participation in world trade enhances Nigeria's access to capital, foreign direct investment, and technology, which are critical for economic development.
- World trade provides Nigerian businesses with access to larger global markets, enabling them to reach a broader customer base and expand their operations.
EVALUATION: 1. Define Trade
- Mention 5 reasons for carrying out trade.
- Identify 5 factors limiting world trade
- Menty 5 impacts of World Trade to the Development of the Nigerian Economy
CLASSWORK: As in evaluation
CONCLUSION: The teacher commends the students positively
