Standard Indicator
7.4.1
Voluntary Trade
Purpose
Students will give examples of trade between countries in Africa, Asia,
and the Southwest Pacific and explain how voluntary trade benefits
countries and results in higher standards of living.
Materials
For the teacher: transparency of Black Line Master (BLM) Trade
Benefits, overhead projector, piece of paper, chalk, chalkboard
For each student: copy of BLM Free Trade, pencil, paper
Activity
A. Pre-Activity Discussion
1. Remind students that trade barriers impede trade
between nations.
2. Ask students to name different types of trade barriers.
3. Say to students: “What are some common effects of trade
barriers?”
4. As students share their knowledge, guide them to consider
the negative side effects of trade barriers.
(continued)
Standard 4 / Curriculum Framework / Activity 1
Indiana Social Studies Grade 7 Standards Resource, February 2003
ACTIVITY
Designate one half of
the class as “pro-free
trade” and the other
“pro-government trade
control.” Tell students
that they will hear a
scenario and then have
a debate. Say to
students: “U.S. shoe
factory workers are
losing their jobs due to
foreign imports. The
shoe industry is calling
for government quotas,
while economists stress
that free trade is
crucial.” Hold a class
debate.
incorporating
TECHNOLOGY
Have students form
groups of three or four.
Direct students to visit
score.rims.k12.ca.us/
activity/balance_
trace_int and complete
the directions for the
group project “Seeking
a Balance in
International Trade.”
Standards Links
7.4.2, 7.4.3,
7.4.4, 7.4.6
page 159
Standard 4
B. Understanding Free Trade Benefits
1. Explain to students that they will be examining the benefits
of free trade, or trade without barriers.
2. Place the transparency of the BLM Trade Benefits on the
overhead projector.
3. Use a piece of paper to cover Table B and turn on the
overhead projector.
4. Tell the students to pretend that Country X and Country Y
are the only two countries in existence and that each country
only produces pants and sweaters.
5. Explain that each country uses half of their working hours
on each product.
6. Ask the students what they notice about the amount each
country produces.
7. Have students share their observations.
8. Instruct students to predict what would happen if each country
only made the product that they produced more of. Guide students
to share and explain their predictions.
9. Uncover Table B on the BLM and ask the students if
specialization changed the overall amount of goods produced.
extending
THE
Activity (continued)
10. Ask students to compare the amount of each good available
to each country based on Table A and Table B, assuming the
countries trade after specialization.
11. Guide students to understand that because specialization
increased production, free trade raised the standard of living
in each country.
C. Free Trade
1. As you pass out the BLMs Free Trade, explain to students that
they will be working independently to locate examples of trade
and to explain some effects of trade.
2. Direct students to read their BLMs silently.
3. Give students an opportunity to ask questions about the
BLM directions.
4. Write the due date on the chalkboard and instruct students
to copy it onto their BLMs.
D. Closing Discussion
1. Have students bring their BLM responses to class on the
due date.
2. Ask students to share the trade examples that they discovered.
3. Record the examples on the chalkboard.
4. After every student has shared an example, guide the class
to discuss their responses to part B of the BLM.
Questions for Review
Basic Concepts and Processes
As students share their BLM responses ask them:
Standard 4
Name an example of trade that exists between a country
in Africa and a country in Asia.
Name an example of trade between two countries in the
Southwest Pacific.
Explain why countries often trade with other countries
in their region.
Name a product in which Japan specializes.
Describe how the amount of productive resources allocated
to produce this product would change if Japan could not trade
with other countries.
What is one benefit of free trade?
page 160
Standard 4 / Curriculum Framework / Activity 1
Indiana Social Studies Grade 7 Standards Resource, February 2003
Trade Benefits
TABLE A
Pants
Sweaters
Country X
100
70
Country Y
80
100
Total
180
170
Pants
Sweaters
Country X
200
0
Country Y
0
200
200
200
TABLE B
Total
Standard 4 / Curriculum Framework / Activity 1
Indiana Social Studies Grade 7 Standards Resource, February 2003
Black Line Master 1
page 161
Trade Benefits
Teacher Directions
Explain to students that they will be examining the benefits of free trade, or trade without
barriers. Place the transparency of the BLM Trade Benefits on the overhead projector. Use a
piece of paper to cover Table B and turn on the overhead projector. Tell students to pretend that
Country X and Country Y are the only two countries in existence and that each country only
produces pants and sweaters. Explain that each country uses half of their working hours on each
product. Ask students what they notice about the amount each country produces. Have students
share their observations.
Instruct the students to predict what would happen if each country only made the product that
they produce more of. Guide students to share and explain their predictions. Uncover Table B
on the BLM and ask students if specialization changed the overall amount of goods produced.
Ask students to compare the amount of each good available to each country based on Table A
and Table B, assuming the countries trade after specialization. Guide students to understand
that because specialization increased production, free trade raised the standard of living in
each country.
Answer Key
Not applicable.
Black Line Master 1
page 162
Standard 4 / Curriculum Framework / Activity 1
Indiana Social Studies Grade 7 Standards Resource, February 2003
Name:
Free Trade
Directions: Read the directions below carefully. Record your responses on a separate
sheet of paper.
A) Trade Examples
(1) List at least five examples of trade between countries
in Africa, Asia, and the Southwest Pacific.
Check the Web sites listed below for trade information.
www.dfat.gov.au/trade/ftas.html
www.cia.gov/cia/publications/factbook
www.arabdatanet.com
www.citd.org/trade_info/sections.cfm?sid=14
(Go to the American Express Country Export Issues Reports.)
B) Trade Analysis
(1) If Australia’s trading partners stopped importing wool,
what might be the effect on Australia’s economy?
(2) Why does Australia specialize in the production of wool?
(3) List some of the productive resources used to produce wool.
Consider the geography and the climate of the region.
(4) Explain how specializing in wool raises the standard of living
in Australia.
*For help, visit www.dfat.gov.au/trade/why_trade_matters.html.
Standard 4 / Curriculum Framework / Activity 1
Indiana Social Studies Grade 7 Standards Resource, February 2003
Black Line Master 2
page 163
Free Trade
Teacher Directions
As you pass out the BLM Free Trade, explain to students that they will be working individually to
locate examples of trade and to explain some effects of trade. Direct students to read their BLMs
silently. Provide students with an opportunity to ask questions about the BLM directions. Write
the due date on the chalkboard and instruct students to copy it onto their BLMs. Have students
bring their BLM responses to class on the due date.
Answer Key
Any reasonable response similar to the following:
A) Students’ trade examples will vary.
B) Students’ answers will vary; however, sample answers are listed below.
(1) Australia would lose a lot of income if its trading partners stopped importing wool.
Unemployment would rise because workers would lose their jobs.
(2) The fertile land in Australia’s southeast region provides an ideal location for raising
livestock. Using numerous productive resources in the wool industry is efficient
for Australia.
(3) Fertile land, cattle, shearing tools, human labor.
(4) Due to specialization, Australia is able to produce more, which raises its standard of living.
Black Line Master 2
page 164
Standard 4 / Curriculum Framework / Activity 1
Indiana Social Studies Grade 7 Standards Resource, February 2003