FILLING UP: LESSONS ON GAS PRICES, CONSUMER GOODS, AND THE GLOBAL SUPPLY CHAIN

During the pandemic and following the recent conflict in Ukraine, consumers have been increasingly attuned to the impact of the global supply chain on people’s everyday lives. By discussing the global supply chain in your class, students have an opportunity to learn about how many of our local purchases have global origins. The resources below can help educators explain economic and mathematical concepts foundational to the global supply chain. They also can help students understand the impact of geography and historical events on global trade.

UNC World View also invites you to learn more about the global supply chain by attending the upcoming Richardson Lecture on April 13: Global Supply Chain: Learning Lessons. The 2022 Richardson Lecture will feature a panel discussing the far-ranging impact of the global supply chain as understood by  businesspeople, community leaders, and educators who help North Carolina students understand the changes affecting their families, their state, and the world. Panelists include:

• Jay Swaminathan, UNC-Kenan Flagler distinguished professor and expert on the global supply chain
• Derick Close, CEO and owner of Springs Creative Products Group, Carolina Manufacturing, and Springsteen Logistics and a UNC-Chapel Hill alumnus
• Stephanie Morgan, a math teacher at Pisgah High School in Haywood County, frequent World View participant, and UNC-Chapel Hill alumna

We look forward to this important discussion and encourage you to dive into this topic with your students using the following resources:

Lessons and Activities on the Global Supply Chain

Background on the Recent Challenges:

• Economic Education Group of the Federal Reserve Bank of St. Louis
  • (9-12 + CC) ACTIVITY: The Science of Supply and Demand (2021)
    • Includes a brief reading and worksheet on the concepts of supply and demand in the context of events including the COVID-19 pandemic, Hurricane Sandy, and the Ethanol Fuel Boom
  • (9-12 + CC) ACTIVITY: Consumer Spending and the COVID-19 Pandemic (2021)
    • Includes a brief reading and worksheet on concepts including, cost of living, durable and nondurable goods, and the consumer price index
  • WSJ VIDEO: What America’s supply-Chain Backlog Looks Like Up Close (2021) (5 min.)
    • Minimalist video following a cargo ship with written captions (not read aloud) that “illustrates the scope of the problem and the complexities of this process”
  • NYT LESSON: Trade Troubles: Learning About the Global Supply Chain and Why It’s Broken (2021)
    • Includes activities reading an article or listening to/reading the transcription of a podcast

Industry Examples (Chips, Clothing, Gas, Trucking):

• Clothing
  • WSJ VIDEO: How Companies Are Overhauling Supply Chains to Ease Bottlenecks (2022) (~5 min.)
    • An overview of challenges in managing the global supply chain with examples from companies, including Timberland and United Colors of Benetton
    • Includes a brief discussion of “reshoring” manufacturing to the U.S.
  • NBC News: VIDEO: Supply Chain Crisis Explained through the Journey of a Single Sweater (2021) (~2:30min.)
    • Traces the production of a sweater, delivery to consumers in the U.S., and resulting price increases
• Chips
  • PBS NOVA: VIDEO: Why Is There a Global Chip Shortage? (2021) (~5 min.)
    • Explains what chips are and how the global chip shortage came about
  • WSJ VIDEO: How the Chip Shortage is Forcing Auto Makers to Adapt (2021) (~5 min.)
    • Overview of the chip shortage and its impact on automakers
  • Bloomberg: Micron CEO Says Working Around Supply of Gases from Ukraine (2022)
• Gas
  • NBC News: VIDEO Why Do Gas Prices Change? (2014) (~1 min.)
    • Overview of the factors impacting gas prices
  • CNBC: Why Gas Prices in the U.S. Vary (2021) (~11 min.)
  • Economic Education Group of the Federal Reserve Bank of St. Louis
    • Higher Gasoline Prices: Temporary or Time to Buy a Hybrid?
      • Includes activities and a short reading for students on gas prices between 2002 and 2011 to introduce economic terminology and to help students test their learning
    • Why Do Gasoline Prices React to Thinks that Have Not Happened? (2007)
      • Provides a more easily digestible overview of why gas prices increase in response to future events

• Food
  • Gallop: Ukraine War Threatens World’s Food Supply
  • Syracuse University News: Russia-Ukraine Conflict Could Lead to Price Hikes and Global Supply Disruptions
•  Trucking
  • WSJ VIDEO: Help Wanted: Truck Drivers to Unclog the Supply Chain (~5 min.)
    • Reviews the increased demand for truck drivers as businesses look to combat the supply chain backups

General Background:

• ACTIVITIES from the Economic Education Group of the Federal Reserve Bank of St. Louis
  • (6-12 +CC) A Dollar’s Worth: Inflation is Real (2021)
    • Middle School Student Edition
    • High School/ College Student Edition
    • Introduces students to the work of the Bureau of Labor Statistics and concepts including income, interest, deflation, and interest rates
  • (6-12 + CC) VIDEO: Money and Inflation
    • An introductory video explaining inflation
  • (6-8) A ¥en to Trade: Trade Connections
    • Hands-on lesson that invites students to wear clothes or bring in goods made in another country as a means of studying international trade
  • (6-12 + CC): The Anchoring Effect (2021)
    • Middle School Student Edition
    • High School/College Student Edition
    • Introduces students to some of the psychology behind consumer behavior and price increases
  • (9-12) FRED (Federal Reserve Economic Data) Activities for AP Macro
    • A series of 15+ activities for the AP Macro classroom
  • (9-12+) ACTIVITY: National Geographic: A Supply Chain
    • Includes a video and lesson studying the supply chain using a real-world example