WTO+simulation

=Transnational Capital Auction Simulation=

1. (3 points) A description of the specific Principle(s) of Learning you are incorporating, selected from the Principles of Learning described by James Paul Gee. The active, critical learning principle. The simulation is set up so that students are encouraged to actively engage in learning. “Psychological moratorium” Principle- The simulation is set up so that students can take risks, learn about globalization in a low risk environment. Identity principle- The students are taking on the identity of a developing nation, they have choices on how their nation will behave, what route their nation will take in the simulation. Through the simulation, and through their actions as that developing nation in the simulation, they will hopefully learn more about themselves, and globalization. Probing principle- The simulation has five rounds, in between each round the students can alter strategies, and try out new things to see what is the best route for winning, if that is what they want to do.

2. (5 points) The rules of the activity, and any materials necessary. In the simulation students will play developing nations competing for investment from a transnational corporation, played by me. The simulation will last five rounds, in those rounds students will set their minimum wage, environmental regulations, child labor laws, corporate tax levels, as well as worker organizing laws. For each of these laws they will be awarded a certain number of Friendly to Capital Credits, the nation with the most Friendly to Capital Credits is the most appealing to the transnational corporation, but not the most appealing to it’s citizens, so it does not get the most game points. In essence in this game you want to be second place, you want to appeal to transnational corporations, but at the same time you do not want to be the worst nation to live in. After each round I would tally up the totals for each team, interact and comment as if I were the corporation.

The materials necessary to play this game are: **TRANSNATIONAL CAPITAL AUCTION CREDIT SHEET **


 * MINIMUM WAGE/HR. **

$5.00………….. zero “Friendly-to-Capital” credits $2.50………….. 46 credits $0.55… ….76 credits

$4.75…………..10 credits $2.25………….. 49 credits $0.45…….79 credits

$4.50…………..15 credits $2.00………….. 52 credits $0.35…….82 credits

$4.25…………..20 credits $1.75………….. 55 credits $0.30…….85 credits

$4.00…………..25 credits $1.50……………58 credits $0.25…….88 credits

$3.75…………..30 credits $1.25……………61 credits $0.20…….91 credits

$3.50…………..33 credits $1.00……………64 credits $0.15…….94 credits

$3.25…………..37 credits $0.85…………….67 credits $0.10…….97 credits

$3.00…………. 39 credits $0.75…………….70 credits $0.05…….100 credits

$2.75…………..43 credits $0.65…………….73 credits


 * CHILD LABOR **

Child labor below 16 is illegal / enforced ……….. 0 credits

Child labor below 16 is illegal/ weakly enforced…15 credits

Child labor below 16 is illegal / not enforced…….30 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Child labor below 14 is illegal / enforced…………50 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Child labor below 14 is illegal/ weakly enforced…70 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Child labor below 14 is illegal/ not enforced……..85 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">No Child labor laws…………………………………100 credits


 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">WORKER ORGANIZING **

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Unions fully legal / allowed to organize…………………………….0 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Unions fully legal / some restrictions on right to strike…………..15 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Only government approved unions legal/ some restrictions........30 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Only government organized unions allowed………………………45 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Unions banned / no right to strike…………………………………..60 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Unions banned/no right to strike/ military stationed in factories…85 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Suspected Union organizers jailed/military used against strikes..100 credits


 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">TAXATION RATE ON CORPORATE PROFITS **

<span style="font-family: Arial,sans-serif; font-size: 10pt;">75% ……..0 credits 35%............40 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">70%..........5 credits 30%............50 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">65%.........10 credits 25%............60 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">60%.........15 credits 20%...........70 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">55%........20 credits 15%...........75 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">50%........25 credits 10%...........80 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">45%........30 credits 5%.............90 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">40%........35 credits No taxes….100 credits


 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">ENVIRONMENTAL LAWS **

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Strict environmental laws / enforced………………… 0 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Strict environmental laws / weakly enforced………..15 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Strict environmental laws / not often enforced………30 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Some environmental laws / enforced……………….50 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Some environmental laws / weakly enforced……..70 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Some environmental laws / not often enforced……85 credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Almost no environmental laws……………………..100 credits


 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">BIDS TO CAPITAL **


 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">COUNTRY # ROUND #  **

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Minimum wage credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Child labor credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Worker organizing credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Taxation rate credits

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Environmental laws credits


 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">TOTAL CREDITS THIS ROUND **

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Name: Per:

**<span style="font-family: Arial,sans-serif; font-size: 10pt;">TRANSNATIONAL CAPITAL AUCTION: INSTRUCTIONS **


 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">YOUR ROLE: **

<span style="font-family: Arial,sans-serif; font-size: 10pt;"> You are leaders of a poor country. Each of your countries was either colonized by European countries or dominated by them economically & militarily. You need to attract foreign investment (capital) from transnational corporations for many different reasons. Of course, not all of your people are poor. Many, including a number of //you**,**// are quite wealthy. But your wealth depends largely on making deals with corporations that come back to your country. You get various kickbacks, bribes, jobs for members of your families, etc. Some of this is legal, some not. But in order to stay in power you also need to provide jobs for your people, & the owners of capital companies like Nike, Disney, Coca-Cola, Levi Strauss, etc. are the ones who provide thousands of jobs in their factories. The more jobs you can bring into your country, the more legitimacy you have in the eyes of your people. //And,// your government collects taxes from these companies, which help keep your government working, & also help you pay back your loans to the International Monetary Fund (IMF) & other foreign-owned banks. The bottom line is this: You badly need these companies to invest capital in your country.

<span style="font-family: Arial,sans-serif; font-size: 10pt;"> But here’s the problem: You must compete with other poor countries that also need capital. Corporations are not stupid, & so they let you know that if you want their investment, you must compete with other countries by:


 * § <span style="font-family: Arial,sans-serif; font-size: 10pt;">Keeping workers’ wages low
 * § <span style="font-family: Arial,sans-serif; font-size: 10pt;">Having few laws to regulate conditions of work (overtime, breaks, health & safety conditions, age of workers), or not enforcing the laws that //are// on the books
 * § <span style="font-family: Arial,sans-serif; font-size: 10pt;">Having weak environmental laws
 * § <span style="font-family: Arial,sans-serif; font-size: 10pt;">Making sure that workers can’t organize unions; having low taxes on corporate profits, etc.

<span style="font-family: Arial,sans-serif; font-size: 10pt;"> Basically, companies hold an auction for their investments. The countries who offer the companies the most “freedom” are the ones who get the investment.


 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">THE GAME: **


 * <span style="font-family: Arial,sans-serif; font-size: 10pt;"> The goal of the game is to win the game by ending up with the most game points after 3 auction rounds. **

<span style="font-family: Arial,sans-serif; font-size: 10pt;">Each country team’s goal is to “win” by attracting capital. The team that bids the 3rd highest number of “Friendly-to-capital” credits in a round is awarded 100 game points; the team with the 2nd highest number of Capital credits is awarded 50 game points; & the team with the 3rd highest Capital credits is awarded 25 game points. The other teams get no points for the round. The auction is “silent” – which means you don’t know until the end of each round who has bid what.

<span style="font-family: Arial,sans-serif; font-size: 10pt;"> Again, Capital will go where the people are “friendliest” to it. However, the “friendlier” you are to Capital, the angrier it may make your own people. For example, Capital wants workers to work for very little & not to worry about environmental laws. But that could start demonstrations or even rebellions, which would not be good for Capital or for you as leaders of your country. That’s why the team bidding the highest number of Capital credits does not get the highest number of game points. Last rule: Your team may be the highest (Capital credit) bidder //twice// & not be penalized. But for each time you are the highest bidder more than twice, you lose 10 game points – 10 the 1st time, 20 the 2nd, etc. This is a “rebellion penalty.” Good luck!

A tally sheet, or board where I keep score.


 * || <span style="font-family: Arial,sans-serif; font-size: 10pt;">Round || <span style="font-family: Arial,sans-serif; font-size: 10pt;">#1 || <span style="font-family: Arial,sans-serif; font-size: 10pt;">Round || <span style="font-family: Arial,sans-serif; font-size: 10pt;">#2 || <span style="font-family: Arial,sans-serif; font-size: 10pt;">Round || <span style="font-family: Arial,sans-serif; font-size: 10pt;">#3 || <span style="font-family: Arial,sans-serif; font-size: 10pt;">Round || <span style="font-family: Arial,sans-serif; font-size: 10pt;">#4 || <span style="font-family: Arial,sans-serif; font-size: 10pt;">Round || <span style="font-family: Arial,sans-serif; font-size: 10pt;">#5 ||
 * || <span style="font-family: Arial,sans-serif; font-size: 10pt;">Friendly to Capital Credits || <span style="font-family: Arial,sans-serif; font-size: 10pt;">Game Points || <span style="font-family: Arial,sans-serif; font-size: 10pt;">FTCC || <span style="font-family: Arial,sans-serif; font-size: 10pt;">GP || <span style="font-family: Arial,sans-serif; font-size: 10pt;">FTCC || <span style="font-family: Arial,sans-serif; font-size: 10pt;">GP || <span style="font-family: Arial,sans-serif; font-size: 10pt;">FTCC || <span style="font-family: Arial,sans-serif; font-size: 10pt;">GP || <span style="font-family: Arial,sans-serif; font-size: 10pt;">FTCC || <span style="font-family: Arial,sans-serif; font-size: 10pt;">GP ||
 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Country 1 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Country 2 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Country 3 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Country 4 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Country 5 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Country 6 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||
 * <span style="font-family: Arial,sans-serif; font-size: 10pt;">Country 7 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||   ||

3. The activity should, in some way, address the following four elements: o (3 points) Objects - What are the basic tools and objects the player operates/interacts with? Players interact with their teammates, the auction credit sheet, the bids to capital sheet, and with other teams at the end of the round via the tally. o (3 points) Operations - How does the player operate/interact with those tools or objects? They will look at the credit sheet to determine what level of regulation they want in each area, they will then determine the credits they earn for that, and then enter it on the bids to capital sheet. o (3 points) Objectives - What are the strategies involved in operating/interacting with the basic tools and objects? The strategy is to try to set your regulations at a level that are appealing to transnational corporations, but are still not so atrocious that your people rebel. o (3 points) Outcomes - What is the player attempting to accomplish by strategically operating the basic tools and objects? The outcome that they will hope to achieve is first place(and by first place I mean second on the total number of friendly to capital credits, which achieves the most game points.