10/25/23, 6:38 PM International Economic issues

Witty International School

Pawan Baug
Cambridge International Center(Regn No :- IN570)
Pawan Baug, Off S. V. Road,
Malad (W), Mumbai - 400 064
Tel. 02241756800.
Email:- [email protected]
www.wittykidsindia.com
(mailto:[email protected])

 International Economic issues

 Subject : ECONOMICS Class / Grade : A Level   From : 1 / 11 / 2023 To : 30 / 11 / 2023
Year : 2023-2024
 Periods : 9

 Periods Duration : 45 Minutes

 Topic Plan
Sr. No Topic SubTopic

1. Balance of payment disequilibrium

2. Economic development

 Topic Plan Details

[ 1 ] Balance of payment disequilibrium

 From : 1 / 11 / 2023 To : 3 / 11 / 2023  Periods : 3  Periods Duration : 45 Minutes

 Previous Knowledge
1. Balance of Payments: Students may have a basic understanding of the balance of
payments and its components, including the current account, capital account, and the
overall balance of payments. They may also be aware of the significance of maintaining a
balanced or sustainable balance of payments position.

2. International Trade: Students may have some knowledge of international trade,

including the concepts of exports, imports, trade deficits, and trade surpluses. They might
understand the impact of trade on a country's economy and the factors that influence
trade flows.

3. Foreign Exchange Rates: Students may be familiar with the concept of exchange rates
and their importance in international trade and finance. They might understand how
changes in exchange rates can affect a country's trade balance and overall economic
stability.

4. Macroeconomic Policies: Students may have a basic understanding of macroeconomic

policies, such as fiscal policy and monetary policy, and their role in influencing the overall
economy. They might be aware of how these policies can impact the balance of payments
through their effects on the domestic economy.

5. International Finance: Students may have some knowledge of international finance,

including the role of foreign investment, international borrowing, and lending in shaping a
country's balance of payments. They might understand the implications of these financial
activities on the overall economic health of a nation.

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 SetInduction
Introduction (5 minutes):

Introduce the concept of balance of payments and its significance in the context of
international trade and finance.
Explain the causes and consequences of balance of payment disequilibrium.

Main Content (35 minutes):

1. Understanding Balance of Payment Disequilibrium (10 minutes):

Define balance of payment disequilibrium and its types, including current account
deficit and surplus, capital account deficit and surplus, and overall balance deficit
and surplus.
Discuss the implications of persistent disequilibrium on the economy.
2. Causes of Disequilibrium (10 minutes):

Explain the various factors that can lead to balance of payment disequilibrium,
such as trade imbalances, capital flight, and fluctuations in exchange rates.
Use case studies to illustrate real-world examples of countries facing balance of
payment issues.
3. Measures to Correct Disequilibrium (15 minutes):

Discuss the policy options that can be adopted to correct balance of payment
disequilibrium, including exchange rate adjustments, trade policy changes, fiscal
and monetary policy measures, and structural reforms.
Explain the short-term and long-term effects of these corrective measures on the
economy.

 Learning Objectives
To help students understand the concept of balance of payment disequilibrium and the
measures that can be adopted to correct it.

 Teaching and Learning Aid

Whiteboard and markers
Handouts with relevant data and case studies
PowerPoint presentation

 KeyTerminology
1. Current Account: The section of a country's balance of payments that records its exports
and imports of goods and services income receipts and current transfers.

2. Capital Account: The section of the balance of payments that records the flows of
investment and financial assets between a country and its foreign trading partners.

3. Exchange Rate Adjustment: A change in the value of a country's currency relative to

other currencies which can help correct trade imbalances by influencing the
competitiveness of exports and imports.

4. Trade Policy Changes: Alterations in trade policies such as tariffs quotas and
subsidies which can impact the flow of goods and services across borders and
potentially correct trade imbalances.

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5. Fiscal Policy Measures: Changes in government spending and taxation designed to

influence the level of economic activity and demand which can help address
macroeconomic imbalances related to the balance of payments.

6. Monetary Policy Measures: Tools used by central banks to control the money supply
interest rates and credit conditions which can impact the flow of capital and influence
the balance of payments.

7. Structural Reforms: Long-term changes in economic policies and institutions aimed at

improving the overall efficiency and competitiveness of an economy thereby addressing
the root causes of balance of payment disequilibrium.

8. Devaluation: A deliberate downward adjustment in the value of a country's currency

relative to other currencies typically undertaken to boost exports and correct trade
imbalances.

9. Export Promotion: Policies and strategies aimed at encouraging the growth of exports
through various means such as incentives market development and trade agreements
to improve the balance of payments position.

10. Import Substitution: Policies that aim to replace foreign goods and services with
domestically produced alternatives often through tariffs and other trade barriers to
reduce reliance on imports and correct trade imbalances.

11. Foreign Direct Investment (FDI): Investment made by a firm or an individual in one
country into business interests located in another country which can have significant
implications for the capital account and balance of payments position.

 Plan HomeWork
Assessment:

Evaluate student understanding through a short quiz or a written assignment that

requires them to analyze a hypothetical scenario of balance of payment disequilibrium
and propose suitable corrective measures.

Homework:

Assign students to research recent examples of countries that have successfully corrected
their balance of payment disequilibrium and the strategies they employed.

 Plan ClassWork
Divide the class into groups and assign each group a specific case of balance of payment
disequilibrium.
Instruct each group to propose a comprehensive plan to correct the identified
disequilibrium and present it to the class.

[ 2 ] Economic development
 From : 4 / 11 / 2023 To : 8 / 11 / 2023  Periods : 4  Periods Duration : 45 Minutes

 Previous Knowledge
1. Basic Economic Concepts: Students may be familiar with fundamental economic
principles such as supply and demand, market structures, and factors of production.

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2. Gross Domestic Product (GDP): Students may have a basic understanding of GDP as a
measure of a country's economic performance and the value of all goods and services
produced within its borders over a specific period.

3. Income and Poverty: Students may be aware of the concepts of income, wealth
distribution, and poverty, and their implications for societal well-being and economic
growth.

4. Human Development: They may have some knowledge of human development, including
factors such as education, healthcare, and standard of living, and how these contribute to
overall societal progress.

5. Infrastructure: Students might understand the importance of infrastructure in supporting

economic activities and promoting regional development, including the role of
transportation, communication, and energy networks.

6. Political Stability and Economic Growth: Students may have a basic understanding of
the relationship between political stability and economic growth, recognizing the
significance of a stable political environment in fostering investment and business
development.

 SetInduction
Introduction:

Begin by introducing the concept of economic development and its significance in the
context of global prosperity and welfare.
Encourage students to share their thoughts on what they believe constitutes economic
development.

Main Content:

1. Defining Economic Development:

Define economic development, emphasizing its broader implications beyond mere

economic growth.
Discuss the various dimensions of development, including social, political, and
environmental aspects.
2. Indicators of Economic Development:

Introduce key indicators of economic development such as GDP per capita, human
development index (HDI), poverty rates, and income distribution.
Discuss how these indicators help measure the overall progress and well-being of a
society.
3. Factors Contributing to Economic Development:

Identify and explain the factors that contribute to economic development, such as
investment in human capital, technological advancements, infrastructure
development, political stability, and sound economic policies.
Use case studies and real-world examples to illustrate the impact of these factors
on the economic development of specific countries.

 Learning Objectives
To familiarize students with the concept of economic development, its indicators, and the
factors that contribute to the growth of an economy.

 Teaching and Learning Aid

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Whiteboard and markers

Handouts with relevant data and case studies
PowerPoint presentation

 KeyTerminology
1. Gross Domestic Product (GDP): The total monetary value of all finished goods and
services produced within a country's borders in a specific time period often used as a
measure of a nation's economic output.

2. Human Development Index (HDI): A composite statistic that includes factors such as life
expectancy education and per capita income providing a broader measure of a
country's overall development and standard of living.

3. Per Capita Income: The average income earned per person in a specific area often used
as an indicator of the economic well-being of the population.

4. Poverty Rate: The percentage of the population living below the poverty line which is a
crucial indicator of the overall economic development and well-being of a society.

5. Infrastructure Development: The construction and improvement of fundamental

facilities and systems such as transportation communication and energy networks
which are essential for supporting economic activities and growth.

6. Human Capital: The skills knowledge and health of individuals that contribute to their
productivity and potential for economic growth emphasizing the importance of
education and healthcare in development.

7. Technological Advancements: Innovations and improvements in technology that

contribute to increased productivity efficiency and the creation of new industries
playing a significant role in fostering economic development.

8. Political Stability: The condition in which a country experiences consistent governance

and the absence of political disturbances which is crucial for attracting investments and
promoting long-term economic growth.

9. Income Distribution: The way in which a nation's total income is distributed among its
population often indicating the level of equality or inequality within the society and
impacting social and economic development.

10. Sustainable Development: Development that meets the needs of the present without
compromising the ability of future generations to meet their own needs emphasizing the
importance of balancing economic growth with environmental protection and social
equity.

11. Industrialization: The process by which an economy is transformed from primarily

agricultural to one based on the manufacturing of goods often leading to increased
productivity job creation and economic development.

 Plan HomeWork
Assessment:

Evaluate student understanding through a short quiz or a written assignment that

requires them to analyze the factors influencing the economic development of a specific
country.

Homework:

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10/25/23, 6:38 PM International Economic issues

Assign students to research and present case studies of countries that have undergone
significant economic development and the strategies that led to their success.

 Plan ClassWork
Divide the class into groups and assign each group a particular factor contributing to
economic development.
Instruct each group to prepare a presentation highlighting the significance of their
assigned factor in promoting economic development.

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