GCSE Citizenship for You Online Case Studies


Activity 4: The incentive game

Aims

To understand the source of a multinational company's power over a developing or small nation.

National Curriculum links

Pupils should be taught:

1(e) about how the economy functions; (j) about the wider issues and challenges of global interdependence and responsibility
2(c) to contribute to group and exploratory class discussions, and take part in formal debates

Resources

Activity

  • Hand out Activity Sheet 4.1 and ask pupils for their reactions to the background information. Pupils can use the Internet to find the GDP of a country and the total assets of a company that they know.
  • Pupils should not see the whole of Activity Sheet 4.2. Photocopy it, cut it in half and give out the sections according to the groups that the pupils join.
  • Set the scene for the game:

Somneedia and West Loania are two developing countries (it does not matter where) anxious to attract foreign investment, in the shape of Jeanpool, a multinational denim clothing company, which wants to make as much profit as possible and is not particularly concerned how or where. The finance ministers of the countries will meet with the Managing Director of Jeanpool and offer him reasons and incentives so that he will choose to site his new factory in their country.
  • Put pupils into groups of three (or six or nine if they are less confident). Within each group one pupil (or two or three pupils) will represent Somneedia, one (or two or three) to represent West Loania, and one (or two or three) to represent Jeanpool. The representative/s of each group will be given the points (from Activity Sheet 4.2) for their country. They need to take it in turns to use the points to convince Will Gain from Jeanpool to put his factory in their country. They must mention each point and take turns.

It might be interesting to do a poll with all the groups at the end to see which country has come out on top across the class.

Differentiation

Pupils might label one piece of paper ‘Good for the company' and one ‘Good for the country'. They should then cut up the points and place them on the appropriate piece of paper.

Extension

  • Play the game again with Will Gain concerned about the ethics and the needs of the community, rather than simply his profit margins.
  • Make two lists:
    • One giving the reasons why a profit-seeking company might choose to operate in a particular country.
    • One giving the reasons why an ethical company might choose to operate in a particular country.

Discussion points

  • Why are countries so keen to attract foreign companies?
  • Why do companies have so much power?
  • What effects do the incentives offered have on the country and its citizens?
  • Why do companies focus on profit (shareholder accountability, etc.)?