Lesson plan

Subject

: English for economics

Sub-topic

: Trade

Level

: Vocational High School

Time Allocation : 2 x 45 minutes

Skill

: Reading

A. The aims of teaching

1. To make students familiar with the basic concepts of economics,
2. Introduce to students to the specific field economic in English
3. To meet the needs of students of economics and future economists and
reinforce knowledge of grammatical structures.
B. Learning outcomes
1. The students can understand about vocabularies in English for
economics.
2. The students can know about the specific words in English for
economics.
3. The students can use English for economics in their job.
C. Method
Communicative Approach
D. Materials
Vocabularies of English for restaurant
Collateralized Debt Conditions
Also called CDOs. These are securities backed by a variety of fixed
income assets, usually packages of mortgages.
When the subprime crisis broke out, many mortgage-backed CDOs
became toxic.
credit crunch

refers to a situation where banks reduce the availability of loans or

credits to customers due to the fear of not being repaid.
The credit crunch has laid banks to tighten the conditions required to
get a credit.
economic meltdown
a severe and often sudden deterioration of financial institutions and
assets resulting in huge financial loss.
This economic metldown is the worst economic crisis since the stock
market crash in 1929.
financial bailout
financial assistance to business institution to avoid their collapse
The US government has decided to fund a bailout of the banking
industry.
Banks have been bailed out by the government
mortgage
It is a loan secured by real property.
Banks usually give mortgage loans under certain conditions.
inflation
It refers to a rise in the general level of prices of goods and services in
an economy over a period of time, leading to an erosion in the
purchasing power of money.
Because of the inflation prices went up.
regulate
to regulate the market means to control and supervise it.
Many people think that governments should regulate markets so that
markets would be free of fraud, manipulation, and illegal speculations.

speculate
to buy or sell securities, property, etc., in the hope of deriving
considerable capital gains
Investors become speculators when they purchase a stock with the
sole purpose of selling it to someone else at a higher price.
recession
refers to two or more consecutive quarters of negative economic
growth
The current recession has created an increase in unemployment.
securities
They are certificates of ownership of stock, bonds, or other financial
assets.
Two examples of securities in the stock market are stocks and bonds.
securitization
This refers to the process of transforming assets into securities,
assigning them a value and being traded.
The securitization of subprime mortgages led to the credit crunch.
subprime mortgage
a housing loan given to people with poor credit histories.
They are really poor. Because of their low credit rating, they can only
qualify for a subprime mortgage.
toxic assets
these refer to a kind of high-risk debts that are unlikely to be paid back
to lenders.
The banks that owned toxic assets were unable to resist their collapse.
Troubled Assets Relief Program

Also referred to as TARP. It is a plan devised by the US government to

buy toxic assets to strengthen the financial sector.
TARP has been criticized by many people because of the massive cost
and the behavior of the banks.
The advantages of trade
International trade brings a number of valuable benefits to a country,
including:
1. The exploitation of a country's comparative advantage, which
means that trade encourages a country to specialise in producing only
those goods and services which it can produce more effectively
and efficiently, and at the lowest opportunity cost.
2. Producing a narrow range of goods and services for the domestic and
export market means that a country can produce in at higher volumes,
which provides further cost benefits in terms of economies of scale.
3. Trade increases competition and lowers world prices, which provides
benefits to consumers by raising the purchasing power of their own
income, and leads a rise in consumer surplus.
4. Trade also breaks down domestic monopolies, which face competition
from more efficient foreign firms.
5. The quality of goods and services is likely to increases as competition
encourages innovation, design and the application of new
technologies. Trade will also encourage the transfer of
technology between countries.
6. Trade is also likely to increase employment, given that employment is
closely related to production. Trade means that more will be employed
in the export sector and, through the multiplier process, more jobs will
be created across the whole economy.
The disadvantages of trade
Despite the benefits, trade can also bring some disadvantages, including.
1. Trade can lead to over-specialisation, with workers at risk of losing their
jobs should world demand fall or when goods for domestic
consumption can be produced more cheaply abroad. Jobs lost through

such changes cause severe structural unemployment. The

recent credit crunch has exposed the inherent dangers in overspecialisation for the UK, with its reliance on its financial services
sector.
2. Certain industries do not get a chance to grow because they face
competition from more established foreign firms, such as new infant
industries which may find it difficult to establish themselves.
3. Local producers, who may supply a unique product tailored to meet the
needs of the domestic market, may suffer because cheaper imports
may destroy their market. Over time, the diversity of output in an
economy may diminish as local producers leave the market.
E. Activities in Learning
Steps :
a. Introduction
-

Greeting

Praying

Checking the students attendance list

Introducing the topic

Achievement of the goals: informing the goals of the lesson.

b. Core activities
1. Exploration
-

Reviewing the material in the last meeting.

Explaining trading economic

Giving the examples of trading economic

2. Elaboration

The teacher asks the students to make a group that consist 4

students.

The teacher asks the students to read the text about trading
economic.

The teacher helps the students if they have trouble in reading the
text

3. Confirmation
-

The students show their summary in front of class.

The students and the teachers summarize what has been learned.

Giving confirmation about the results of exploration and elaboration

of learners through a variety of sources.

c. Closing
-

Holding a reflection on today's learning activities.

Giving homework.

Delivering material for the next meeting.

Praying.

F. Sources
http://isis.vse.cz/katalog/syllabus.pl?predmet=87397
http://www.economist.com/economics-a-to-z#node-21529326
http://www.myenglishpages.com/site_php_files/vocabulary-lessoneconomics.php#.VEzxU2d_ugU