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Week Two This week’s lesson was essentially a more in-depth view of last week’s concepts. I began with a brief introduction just like last week. In the introduction we explained that most business decisions are not made in vacuum, but rather depend on the pressures and perspectives from the larger trade system in which all countries operate. Afterwards we divided the class into five groups, and then Howard introduced some key terms. Unfortunately Ashley was sick this week, so she was not able to make it to our TIRP session. Each team was given a separate specialty – agricultural, industrial, consumer, energy, and mineral sectors. We discussed these differences with the class and then explained the concepts of commodities, tariffs, non-tariff barriers, imports, and exports. Interestingly enough, the students had actually just learned about tariffs and imports/exports from their teacher and eagerly shared their knowledge with us. Because the activity was somewhat related to the one we did last week, we reviewed key terms such as surpluses, shortages, supply, and demand. The students remembered these concepts and even mentioned the graph that I had used to illustrate supply and demand last week. After the introduction, Howard and I explained the rules of the game. Each group was required to choose a “trade policy” A, B, or C that corresponded with either encouraging trade through lower tariffs and lower exported product prices, maintaining current levels, or increasing cost of major export products and higher tariff levels. We explained initially that if each team chose policy A, all countries would benefit. If only one country chose C, they would have a much larger advantage over others. However, the more countries would end up choosing C, the less benefit each country would ultimately gain. It was really interesting to see the results of each round. Despite the fact that we told the entire class repeatedly that choosing A would result in benefiting each country, all of the students had different agendas in mind. They publicly announced to the class that everyone ought to choose A, but then each group individually chose C. Unfortunately this ended up harming every group. Even after everyone laughed about it and decided once more as a group to each choose A, some groups still went ahead and chose C, in hopes that other groups would be benevolent and each choose A or B. In our discussion and debriefing, Howard discussed this in relation to the prisoner’s dilemma. He then tied it back to our trade policy and explained the benefits and harms of raising or lowering tariffs and trade barriers. We also discussed concepts such as interdependence, using the group activity to illustrate different countries’ reliance on each other. At the end of the activity, we asked the students to analyze which groups succeeded and what policies they might have used to win the game. By comparing the game to the “real world” we were able to teach a lot of important concepts to the students about trade and international cooperation.
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