Instructor Manual
International Economics
18th Edition
Chapter 1: The International Economy and Globalization
Table of Contents
Purpose and Perspective of the Chapter ....................................................................................... 2
Cengage Supplements ..................................................................................................................... 2
Chapter Objectives ........................................................................................................................... 2
Complete List of Chapter Activities and Assessments ................................................................. 3
Key Terms .......................................................................................................................................... 3
What's New in This Chapter............................................................................................................. 3
Chapter Outline ................................................................................................................................. 4
Additional Discussion Questions .................................................................................................... 6
Additional Activities and Assignments ........................................................................................... 8
Additional Resources ........................................................................................................................ 8
Internet Resources........................................................................................................................................ 8
Primary Sources ............................................................................................................................................ 8
Appendix ............................................................................................................................................ 9
Generic Rubrics ............................................................................................................................................. 9
Standard Writing Rubric ............................................................................................................................... 9
Standard Discussion Rubric ........................................................................................................................ 10
,Purpose and Perspective of the Chapter
The purpose of this chapter is to introduce students to the international economy and
globalization. First, we emphasize the high degree of economic interdependence that
characterizes today’s economies. Next, we discuss the United States as an open economy;
globalization as a process of greater interdependence among countries and their citizens;
and the nature of international competitiveness—for firms, industries, and nations. Finally,
we look at the potential effects that international trade has on workers, and conclude with
a summary of the advantages and disadvantages of globalization.
Cengage Supplements
The following product-level supplements provide additional information that may help you
in preparing your course. They are available in the Instructor Resource Center.
• PowerPoint Slides. This edition includes updated PowerPoint slides. These slides can
be easily downloaded from the instructor’s companion website.
• Test Bank. The Test Bank provides items for instructors’ reference and use. It
contains a variety of question formats in varying levels of difficulty. Cognero®
software makes test preparation, scoring, and grading easy. Featuring automatic
grading, Cognero® allows you to create, deliver, and customize tests and study
guides (both print and online) in minutes.
Chapter Objectives
The following objectives are addressed in this chapter:
01.01 Define economic interdependence.
01.02 Discuss how the world’s economies have become increasingly interdependent.
01.03 Discuss the importance of international trade for the U.S. economy.
01.04 Analyze international competitiveness and the fallacies of international trade.
01.05 Identify the advantages and disadvantages of globalization.
,Complete List of Chapter Activities and Assessments
The following table organizes activities and assessments by objective, so that you can see
how this content relates to objectives and make decisions about which content you would
like to emphasize in your class based on your objectives. For additional guidance, refer to
the Teaching Online Guide.
Chapter Activity/Assessment Source (i.e., PPT Duration
Objective Slide, Workbook)
1.1 Case Study Activity PPT Slide 6 15 min
1.1 Discussion Activity PPT Slide 9 15 min
1.3 Case Study Activity PPT Slide 25 15 min
1.1-1.5 Self-Assessment Activity PPT Slide 38 30 min
1.1-1.5 Chapter 1 Study Textbook 1 hour
Questions
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Key Terms
Automation: The creation of technology, such as robotics, used to produce and deliver
various goods and services.
Economic interdependence: All aspects of a nation’s economy are linked to the
economies of its trading partners.
Globalization: The process of greater interdependence among countries and their citizens.
Openness: The ratio of a nation’s exports and imports as a percentage of its gross
domestic product (GDP).
[return to top]
What's New in This Chapter
The following elements are improvements in this chapter from the previous edition:
• This chapter highlights the following current theme that is at the forefront of
international economics: Globalization of Economic Activity
o COVID-19 and the global economy
o Red Wing Shoe Company faces challenges when producing in the United States
o Trump’s “America First” policy and globalization
o Stanley Black and Decker move back to the United States
o Is international trade an opportunity or a threat to workers?
o Diesel engines and gas turbines as engines of growth
o Waves of globalization
[return to top]
, Chapter Outline
The following outline organizes activities (including any existing discussion questions in
PowerPoints or other supplements) and assessments by chapter (and therefore by topic),
so that you can see how the content relates to the topics covered in the text.
I. Chapter Opener: Economic Interdependence (1.1, PPT Slides 4-5)
a. Case Study Activity, PPT Slide 6, 15 minutes total: Economic
Interdependence: Red Wing Shoe Company Faces Challenges When Producing in
the United States
• What advice would you have given Red Wing before it reversed its
movement toward globalization?
II. 1-1 Globalization of Economic Activity (1.1, PPT Slides 7-8)
a. Discussion Activity, PPT Slide 9, 10 minutes total: Diesel Engines and Gas
Turbines as Movers of Globalization
• What do you think? How did diesel engines and gas turbines
promote international trade among nations?
III. 1-2 Waves of Globalization (1.2, PPT Slides 10-13)
a. 1-2a First Wave of Globalization: 1870–1914
b. 1-2b Second Wave of Globalization: 1945–1980
c. 1-2c Third Wave of Globalization
d. 1-2d Is Globalization in Decline?
IV. 1-3 The United States as an Open Economy (1.3, PPT Slides 14-25)
a. 1-3a Trade Patterns
b. 1-3b Labor and Capital
c. Globalization and Competition: Globalization Forces Kodak to Reinvent Itself;
Bicycle Imports Force Schwinn to Downshift; Stanley Black & Decker Moves Back
to the United States
d. Case Study Activity, PPT Slide 25, 15 minutes total: COVID-19 and
Globalization
• Do you agree or disagree? Why?
V. 1-4 Common Fallacies of International Trade (1.4, PPT Slide 26-28)
VI. 1-5 Is International Trade an Opportunity or a Threat to Workers?
(1.5, PPT Slides 29-32)
VII. 1-6 Has Globalization Gone Too Far? (1.5, PPT Slides 33-37)
VIII. 1-7 The Plan of This Text
International Economics
18th Edition
Chapter 1: The International Economy and Globalization
Table of Contents
Purpose and Perspective of the Chapter ....................................................................................... 2
Cengage Supplements ..................................................................................................................... 2
Chapter Objectives ........................................................................................................................... 2
Complete List of Chapter Activities and Assessments ................................................................. 3
Key Terms .......................................................................................................................................... 3
What's New in This Chapter............................................................................................................. 3
Chapter Outline ................................................................................................................................. 4
Additional Discussion Questions .................................................................................................... 6
Additional Activities and Assignments ........................................................................................... 8
Additional Resources ........................................................................................................................ 8
Internet Resources........................................................................................................................................ 8
Primary Sources ............................................................................................................................................ 8
Appendix ............................................................................................................................................ 9
Generic Rubrics ............................................................................................................................................. 9
Standard Writing Rubric ............................................................................................................................... 9
Standard Discussion Rubric ........................................................................................................................ 10
,Purpose and Perspective of the Chapter
The purpose of this chapter is to introduce students to the international economy and
globalization. First, we emphasize the high degree of economic interdependence that
characterizes today’s economies. Next, we discuss the United States as an open economy;
globalization as a process of greater interdependence among countries and their citizens;
and the nature of international competitiveness—for firms, industries, and nations. Finally,
we look at the potential effects that international trade has on workers, and conclude with
a summary of the advantages and disadvantages of globalization.
Cengage Supplements
The following product-level supplements provide additional information that may help you
in preparing your course. They are available in the Instructor Resource Center.
• PowerPoint Slides. This edition includes updated PowerPoint slides. These slides can
be easily downloaded from the instructor’s companion website.
• Test Bank. The Test Bank provides items for instructors’ reference and use. It
contains a variety of question formats in varying levels of difficulty. Cognero®
software makes test preparation, scoring, and grading easy. Featuring automatic
grading, Cognero® allows you to create, deliver, and customize tests and study
guides (both print and online) in minutes.
Chapter Objectives
The following objectives are addressed in this chapter:
01.01 Define economic interdependence.
01.02 Discuss how the world’s economies have become increasingly interdependent.
01.03 Discuss the importance of international trade for the U.S. economy.
01.04 Analyze international competitiveness and the fallacies of international trade.
01.05 Identify the advantages and disadvantages of globalization.
,Complete List of Chapter Activities and Assessments
The following table organizes activities and assessments by objective, so that you can see
how this content relates to objectives and make decisions about which content you would
like to emphasize in your class based on your objectives. For additional guidance, refer to
the Teaching Online Guide.
Chapter Activity/Assessment Source (i.e., PPT Duration
Objective Slide, Workbook)
1.1 Case Study Activity PPT Slide 6 15 min
1.1 Discussion Activity PPT Slide 9 15 min
1.3 Case Study Activity PPT Slide 25 15 min
1.1-1.5 Self-Assessment Activity PPT Slide 38 30 min
1.1-1.5 Chapter 1 Study Textbook 1 hour
Questions
[return to top]
Key Terms
Automation: The creation of technology, such as robotics, used to produce and deliver
various goods and services.
Economic interdependence: All aspects of a nation’s economy are linked to the
economies of its trading partners.
Globalization: The process of greater interdependence among countries and their citizens.
Openness: The ratio of a nation’s exports and imports as a percentage of its gross
domestic product (GDP).
[return to top]
What's New in This Chapter
The following elements are improvements in this chapter from the previous edition:
• This chapter highlights the following current theme that is at the forefront of
international economics: Globalization of Economic Activity
o COVID-19 and the global economy
o Red Wing Shoe Company faces challenges when producing in the United States
o Trump’s “America First” policy and globalization
o Stanley Black and Decker move back to the United States
o Is international trade an opportunity or a threat to workers?
o Diesel engines and gas turbines as engines of growth
o Waves of globalization
[return to top]
, Chapter Outline
The following outline organizes activities (including any existing discussion questions in
PowerPoints or other supplements) and assessments by chapter (and therefore by topic),
so that you can see how the content relates to the topics covered in the text.
I. Chapter Opener: Economic Interdependence (1.1, PPT Slides 4-5)
a. Case Study Activity, PPT Slide 6, 15 minutes total: Economic
Interdependence: Red Wing Shoe Company Faces Challenges When Producing in
the United States
• What advice would you have given Red Wing before it reversed its
movement toward globalization?
II. 1-1 Globalization of Economic Activity (1.1, PPT Slides 7-8)
a. Discussion Activity, PPT Slide 9, 10 minutes total: Diesel Engines and Gas
Turbines as Movers of Globalization
• What do you think? How did diesel engines and gas turbines
promote international trade among nations?
III. 1-2 Waves of Globalization (1.2, PPT Slides 10-13)
a. 1-2a First Wave of Globalization: 1870–1914
b. 1-2b Second Wave of Globalization: 1945–1980
c. 1-2c Third Wave of Globalization
d. 1-2d Is Globalization in Decline?
IV. 1-3 The United States as an Open Economy (1.3, PPT Slides 14-25)
a. 1-3a Trade Patterns
b. 1-3b Labor and Capital
c. Globalization and Competition: Globalization Forces Kodak to Reinvent Itself;
Bicycle Imports Force Schwinn to Downshift; Stanley Black & Decker Moves Back
to the United States
d. Case Study Activity, PPT Slide 25, 15 minutes total: COVID-19 and
Globalization
• Do you agree or disagree? Why?
V. 1-4 Common Fallacies of International Trade (1.4, PPT Slide 26-28)
VI. 1-5 Is International Trade an Opportunity or a Threat to Workers?
(1.5, PPT Slides 29-32)
VII. 1-6 Has Globalization Gone Too Far? (1.5, PPT Slides 33-37)
VIII. 1-7 The Plan of This Text
