Understanding free trade and protection

Year level: Lower secondary Learning outcome Students learn about the factors involved in making a living from a small enterprise. Decide, in small groups, upon a small business you might develop - based on agriculture (eg growing rice or coffee), manufacturing (eg making small essential items such as soap or craft items) or a service (eg cleaning or repairing computers). Research and develop a list of the resources needed (land, time, labour, capital and knowledge) and estimate the costs involved. Consider the price you might ask for your goods or services that would give you enough to compensate you for the effort and investment needed. Discuss: What problems (political, economic, social, environmental, technological, global factors) might you face in making a living from your enterprise? What could be the consequences for you if supply exceeds demands? What could be the consequences for you if the demand exceeds the supply? What strategies do producers use to encourage consumers to purchase their goods or services, either when there are shortages or when there is an over-supply? What support might be helpful to start and continue the enterprise when there are problems beyond your control? How might these answers differ if you were in a developing country? Source: Go Global: Global perspectives in the secondary classroom, 2000, Curriculum Corporation: Carlton South, Chapter 5. Assessment task Prepare a case for or against the need for governments to support new businesses.