- - AGRICULTURE CORE CURRICULUM - - (CLF1000) Advanced Core Cluster: Agricultural Business Management (CLF1450) Unit Title: Marketing ____________________________________________________________________________ (CLF1455) Topic: Trading in International Time Year(s) Markets 2 hours 3/4 ____________________________________________________________________________ Topic Objectives: Upon completion of this lesson the student will be able to: Learning Outcome #: (M-8) - Define the terms "developing" and "developed" country, and explain how the level of development affects agriculture and agricultural trade. (M-9) - Describe the culture and lifestyle of people in another country and explain the impact these have on the agriculture in that country. Special Materials and Equipment: World map or globe, access to the library, recipes, and ingredients listed, and cooking utensils for preparing meals. References:..Cramer, J. L., & Jensen C.W. (1988). AGRICULTURAL ECONOMICS AND AGRIBUSINESS (4th ed.). New York, NY: J. Wiley & Sons. Resources: CULTUGRAMS. Cultural brieffings for 102 countries. Include statistics, customs, manners, maps, and addresses of embassies and tourist offices. Available from: Brigham Young University, Kennedy Center for International Studies, Publication Services, 280 HRCB, Provo, Utah 84602 (801)378-6528. Evaluation: Quiz by instructor TOPIC PRESENTATION: TRADING IN INTERNATIONAL MARKETS. A. Comparison of Developing Countries and Developed Countries 1. Developing countries have the following characteristics: a. Low income per capita b. High birth rate c. High child mortality rate d. In general, poor housing conditions e. Health care systems f. High percentage of citizens income spent on food 1) In 1979, people in the U.S. spent about 16 percent of their income on food; while people in Niger spent more than 70 percent of their income on food. 2) Inhabitants of developing countries eat more cereals and less meat than those in developed countries. 2. About 75 percent of the world's population lives in developing countries. 3. Developing countries import agricultural commodities and manufactured goods from developed countries and in turn export raw materials to countries. a. The U.S.imports minerals, metals, and raw materials from developing countries. All of the raw rubber for the automobile industry, 97 percent of the bauxite for the aircraft industry, and cobalt for the steel and nuclear industries are imported from developing countries. b. The U.S. also imports substantial amounts of columbium, tin, aluminum, petroleum products, and other nonrenewable resources. Without access to these esential materials, U.S. industries would probably collapse. c. The U.S. imports many agricultural commodities from developing nations (for example, coffee, sugar, tea, cocoa, and bananas). d. Summer fruits are now imported from South America during the winter months. 2. Developed countries have the following characteristics: a. High income per capita b. Low birth rate c. Low child mortality rate d Higher standard of living e. Lower percentage of an per capita income spent on food f. A strong economy B. Agriculture in Developing Countries and Developed Countries 1. The economy of developing nations is typified by a high percentage of the labor force engaged in subsistence agriculture. a. Energy inputs into agriculture, in addition to energy from the sun, are human or animal labor. Agricultural production is low per producer, in many cases, just enough to feed a single family. b. Conversely, agriculture in developed countries has a small percentage of the labor force involved in agricultural production. High energy inputs, in addition to solar energy, come from petroleum products in the form of fertilizers and fuel burned in operating machinery. Production rates are very high and often developed nations export excess agricultural produce. C. Culture 1. A countrys culture is the integrated pattern of human behavior that includes characteristic features such as: a. Religion - major religious beliefs b. Language - dominant languages in the country c. Diet - staple foods d. Age/history of the country e. Social organization - how the individual fits into, and is viewed by, the society f. Family - the role the family plays in society g. Transportation - how people travel h. Education - general level of education of the people i. Clothing - including norms for dress and amount of income spent on clothing j. Housing - characteristic forms of housing and general availability of housing __________________________________________________________ ACTIVITY: 1. Divide students into groups and have each group select a country to research. Within each group, assign the different aspects of culture to different individuals, having each person research that particular aspect. Ask the groups to design a presentation for the class about their country. 2. Invite a guest speaker who has lived in another country with the class. __________________________________________________________ 2. Impact of Culture on Agricultural Trade. a. Cultural differences have a major impact on conducting agricultural trade between the U.S. and other countries. b. There are many different cultural characteristics that can be used as examples, ranging from religious beliefs and communication to diet and attitudes based on historic events. Following is an example of how cultural barriers in Japan have influenced the government to continue a protectionist policy toward rice. Aspects of Rice Culture and Traditions in Japan Though obscure, a very strong uneasiness about rice market opening is related to the deeply-rooted rice-based culture and traditions in Japan. Most of the thanksgiving festivals in Japan and other cultural activities are even now connected with the peoples' desire for a good harvest of rice. In spite of visible modernization, the values of their cultural heritage which are based on rice, paddy fields, and rural communities, is still alive and vital in contemporary Japan. A discussion of the issue of rice import liberalization reveals the following points: Japanese who oppose rice import liberalization emphasize the significant values played, directly and indirectly, by rice and paddy fields, such as the importance to the regional economy, external benefits, food security, and other environmental and cultural reasons. Those who favor opening the rice market tend to emphasize narrowly defined economic benefits, for reasons of solving trade friction problems and increasing consumer benefits. As time has passed, more and more people have been inclined to support the former position. Today, the discussion appears to relate more to socioeconomic and political elements than narrowly defined economic benefits. __________________________________________________________ ACTIVITY: 1. Have the class (either in groups, as individuals, or as a whole), examine the culture of a country. Ask them to analyze the climate for trade with that country. Questions to be considered: a. What are the staples of the national diet? b. Would this be an easy country to export agricultural products to? Why or why not? c. What agricultural products would this country be most likely to purchase? 2. Conduct a role-play using agricultural trade as the reason for a meeting between a United States agribusiness company and a Japanese company. Students should use the knowledge gained in activity #1 to determine not only the commodities that may interest them as a country, but the attitude and approach that they would use in conducting the trade. Students should be encouraged to dress according to accepted standards in the country being role-played and to model the customs and manners that are involved in doing business. During the role-play, class members should be directed to identify the cultural factors that influence the possible trade between the two companies. Following completion of the role-play, list the cultural factors that were identified and discuss how these cultural barriers could be overcome. 3. Locate popular recipes from five countries that are likely to be excellent markets for U.S. agricultural products. Have each student bring one ingredient for the recipes and have the class prepare and sample the various meals. 4. Using the recipes four the five countries that are likely to be excellent markets for U.S. agricultural products, take the students to a large grocery store and identify the various products that are available and where the products may have been produced. __________________________________________________________ 12/11/91 EEZ/ez #%&C