International Economic Issues - AL
International Economic Issues - AL
International Economic Issues - AL
Topic Plan
Sr. No Topic SubTopic
2. Economic development
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.
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.
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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.
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.
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.
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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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.
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:
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.
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:
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.
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.
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.
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.
Plan HomeWork
Assessment:
Homework:
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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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