Applied Economics
General Academic Strand│Accountancy, Business, and Management
Name: Date:
7.3 Socioeconomic Impacts of Business on International Trade
Concept Map: The Good and Bad of International Trade
60 minutes
Learning Competencies
At the end of this activity, you should be able to:
● Identify and explain the various socioeconomic factors affecting business and
industry (ABM_AE12II-e-g-11).
● Analyze and evaluate the viability of a business and its impact on the community
(ABM_AE12II-e-g-12).
● Formulate recommendations and strategies on how to minimize and maximize a
business’s negative impact and positive impact, respectively (ABM_AE12II-e-g-13).
Recall
Businesses mainly impact international markets through their roles as buyers
and sellers. Goods produced domestically and then sold abroad are called
exports, while those produced abroad and bought by domestic firms or
consumers are called imports. Should exports exceed imports, then the
country experiences a trade surplus that positively impacts its GDP. On the
other hand, if there are more imports, it creates a trade deficit, and the
country’s GDP will decrease.
The impact that exports and imports have on GDP applies to the economies of
foreign countries as well. If foreign countries continuously purchase goods
produced by local firms, then it is likely that their GDP will be negatively
affected (as they import goods from us). If, instead, foreign firms sell goods to
Lesson 7.3: Socioeconomic Impacts of Business on International Trade 1
c
Applied Economics
General Academic Strand│Accountancy, Business, and Management
domestic consumers, their GDP will be positively affected.
By participating in international trade, businesses may also impact foreign
governments beyond their GDP. Some governments impose taxes on imported
goods called tariffs to discourage imports and protect their local industries. By
continuing to sell goods to their consumers, businesses may end up
contributing to the government’s revenue through taxes.
Businesses may also affect foreign industries through the competition that they
provide them. This increased competition could potentially encourage them to
improve their products further or also force them out of business. They may
also impact foreign consumers through the provision of their goods and
services, some of which may provide quality of life improvements or possibly
also bring about undesirable consequences.
Instructions
Prepare a concept map that identifies and explains each stakeholder to
international trade.
Product
Complete the following concept map by identifying the different stakeholders that local
businesses may affect through their imports and exports. For each stakeholder, make sure
to explain how they are relevant to local businesses.
Lesson 7.3: Socioeconomic Impacts of Business on International Trade 2
c
Applied Economics
General Academic Strand│Accountancy, Business, and Management
Suggested Rubric for Grading
The rubric below is a suggested one. Your teacher may modify the rubric based on your
needs. Consult your teacher for the final rubric.
Performance Levels
1 2 3 Suggested
Criteria Score
Beginning Proficient Advanced Weight
Proficiency Proficiency
Correct The student does not The student provides The student gives a
provide an answer or mostly correct complete and
Answer ×2
provides wrong answers with some correct answer.
answers. errors.
Understanding The student shows The student shows The student shows
minimal to no sufficient an excellent
of Economic
understanding of understanding of understanding of ×2
Concepts economic concepts, economic concepts, economic concepts.
with some errors. with some errors.
Lesson 7.3: Socioeconomic Impacts of Business on International Trade 3
c
Applied Economics
General Academic Strand│Accountancy, Business, and Management
Grammar and The output rarely The output is mostly The output is
follows a functional organized and extremely
Organization
sentence structure, is contains only minor organized and
×1
disorganized, and grammatical errors. contains no
contains major grammatical errors.
grammatical errors.
Total Possible Score 15
Teacher’s Feedback
______________________________________________________________________________________________
______________________________________________________________________________________________
______________________________________________________________________________________________
Lesson 7.3: Socioeconomic Impacts of Business on International Trade 4
