Tag: economy

How is Denmark So Rich?

B2 – Upper Intermediate 

A country that is small, cold, not oil-rich, with very high taxes, no industrial base, and where citizens work the least number of hours could not possibly be rich.

Oh, but Denmark really is. 

Despite its sky-high taxes, it didn’t stunt the economy’s growth. The country boasts a well-educated and healthy citizens.

Watch the video explaining how Denmark is so rich.

Vocabulary Questions:

  1. What is “the crack in the foundation”? “But before we crown Denmark the “perfect economy, it’s worth noting the cracks in the foundation.” Use the idiom in a sentence. Give a synonym.
  2. What does “fluke” mean? “How is Denmark pulling this off? Is it a fluke or is there a formula behind its success?” Use the word in a sentence and give a synonym.
  3. What does “to punch above one’s weight” mean? “Despite its small size, Denmark punches way above its weight. It is home to Novo Nordisk, Europe’s most valuable company, Maersk, one of the biggest shipping giants in the world, and Vestas, a global leader in wind energy.” Use the idiom in a sentence and give a synonym.

Discussion Questions:

  1. How is Denmark continuously getting richer and richer?
  2. What are some of the “cracks in the Danish economy’s foundation”?
  3. What is your opinion? “Is this equitable dreamland really sustainable in the long run?”
  4. After the WWII, Denmark had to make a major choice: stay a low-productivity agrarian economy or modernize and integrate into the rapidly developing global trade. It chose the latter. Share your insights on this.
  5. Share your thoughts on the Nordic model: combining capitalism and strong welfare state.
  6. What do you think about Denmark’s principle that universal healthcare is a prudent economic strategy? 
  7. What are your thoughts on investing in better cycling infrastructure? 

Economic Warning Signs Despite Record Holiday Shopping

B2 – Upper Intermediate

Despite record-breaking holiday shopping sales, new warning signs are emerging in the economy. Strong consumer spending may suggest confidence on the surface, but underlying issues such as rising debt, persistent inflation, and slowing job growth point to potential financial strain ahead. This contrast highlights growing concerns that robust retail activity may be masking deeper economic challenges.

Watch the video and be able to answer the questions below.


Vocabulary Questions:

  1. Explain “K-shaped economy.” “Experts say they’re seeing consumers going in two directions; what they’re calling a K-shaped economy.” Use the term in a sentence.
  2. What does the expression “take a hit” mean? “People are struggling with the economy so everyone has taken a hit.” Make one sentence using this idiom.
  3. What does the phrase “dig for deals” mean? “This holiday season, while some shoppers splurge, others are digging for deals.” Use the expression in a sentence.


Discussion Questions:

  1. Do you think strong holiday shopping is a reliable sign of economic strength, or can it be misleading? Why?
  2. In your opinion, should governments be concerned about warning signs even when consumer spending remains high?
  3. How can record holiday shopping coexist with economic warning signs such as rising debt or slowing job growth?
  4. What economic indicators should be examined beyond consumer spending to better understand the true health of the economy?

The End of Globalization

B2 – Upper Intermediate 

Globalization has allowed countries to be more connected, with their economies and societies becoming very much dependent on each other.

While globalization is not dead yet, PWC Global Chairman Robert Moritz believes it will go through a very important shift into regionalization.

Will this be the end of globalization as we know it? 

Watch the video where Bloomberg’s New Economy Forum’s delegates give their two cents about the future of every nation’s interconnectivity.

Vocabulary Questions:

  1. What does “to rewire” mean?  “Globalization is not dead, it’s going to be rewired.” Use the word in a sentence. Give a synonym. 
  2. Explain the meaning of “fragmentation” in trade. “That doesn’t mean you will have fragmentation in the sense of totally competitive blocs because they’re also trying very hard to increase their trade exposure and exports to each other in order to grow their economies.” Use the term in a sentence. 
  3. What does “disaggregation” mean in economics? “The possible outcome is that we’re going to have economic growth not stemming from global integration, but from disaggregation.” Use the word in a sentence. 

Discussion Questions:

  1. Share your insights on nations shifting to doing trade more on the regional, bilateral, or just among smaller number of countries.
  2. What might be the impacts when countries shift to regionalization instead of globalization?
  3. Discuss the advantages and disadvantages of globalization, regionalization, and fragmentation.
  4. Do you agree or disagree that what we have now is regionalization and not fragmentation? Discuss.
  5. Do you think that the breakdown of the global economy into distinct economic and trade blocs in North America, Europe, and Asia will not result to fragmentation? Explain.

BRICS: The Rise of a New Global Order

B2 – Upper Intermediate 

According to Wikipedia, the New World Order is a term often used in conspiracy theories which hypothesize a secretly emerging totalitarian world government.

The BRICS, originally a group of countries including Brazil, Russia, India, China and South Africa, has been growing economically and politically. Since its foundation, the intergovernmental organization has gained more members including Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates.

The question in everyone’s mind is: Is the BRICS going to topple the Western-led institutions like The Group of Seven or G7? Until such time that they figure out their shared values and identity, can they really be considered a powerful global force?

Watch the video about the BRICS and the new world order.

Be ready to answer the questions that follow.

Vocabulary Questions:

  1. Explain the meaning of “trading block”. “BRICS is not a trading block or group. It wasn’t meant to be one.” Use the phrase in a sentence.
  2. What does “united front” mean?  “A variety of tensions between different BRICS members have kept the group from forming a united front, but they have managed it with the New Development Bank, which finances projects across the Global South and provides loans with fewer economic and political conditions compared to the World Bank.” Use the phrase in a sentence. 
  3. Explain the meaning of “multipolar world”. “They want a multipolar world in which there are multiple centuries of geopolitical influence.” Use the phrase in a sentence. 

Discussion Questions:

  1. What are your insights on the formation of BRICS?
  2. Do you think they are a worthy rival of the Western-led G7? Do you believe they can actually stand up to Trump’s trade war? Share your thoughts.
  3. What are the pros and cons of trading blocs?
  4. Share your opinion on this, “The trade war has increased the solidarity between BRICS nations.”
  5. Share your insights regarding this, “BRICS has talked about a shared currency. BRICS countries support reduced trade in US dollar as a tool, as a method to reduce overall Western economic dominance in the global economy.”
  6. Russia was removed from G8. Thus, it is now known as G7. What are your thoughts on BRICS keeping Russia within the intergovernmental organization?

Attacks on Iran Could Affect Oil Prices and Energy Bills

B2 – Upper Intermediate

Oil prices have recently gone up after reports of an attack on Iran. The explosions were heard in the city of Isfahan, and some countries believe that Israel was responsible. Although there was no serious damage, the news caused fear that conflict in the Middle East might grow.

When there is tension in this region, it often affects energy prices around the world. This is because many important oil-producing countries are located there. After the news, the price of oil and gas increased quickly in different parts of the world, including Europe.

Read this article to learn why this attack matters, how it affected energy prices, and what could happen next.

https://www.bbc.com/news/articles/cg5vr2rvzg4o

Vocabulary Questions:

  1. What does “price cap” mean? “The energy regulator, Ofgem, has already announced the energy price cap for July until September.” Make a sentence with this phrase. Give a synonym.
  2. What is “household bill“? “Craig Lowrey, principal consultant at Cornwall Insights, says household bills are safe from any volatility for now. But if this conflict continues past September, household bills could rise.” Make a sentence with this. Give a similar expression.
  3. What does “financial buffer” mean? “”Many rely heavily on Middle Eastern oil and gas imports and lack the financial buffers to absorb sudden price spikes.”” Use this in a sentence. Give a similar expression.

Discussion Questions:

  1. Do you think it’s fair that people in peaceful countries pay more when this happens? Explain your thoughts.
  2. How could rising oil prices affect your country or your personal life?
  3. How does war or conflict in one place affect the whole world today?
  4. Do you think oil prices should be controlled by the government? Why or why not?
  5. Do you think news reports make people too afraid during international conflicts? Why or why not?

America Killed Its Middle Class

B2 – Upper Intermediate

The middle class in America used to mean steady jobs, affordable homes, and a good life for families. But today, many people are struggling. The cost of housing, health care, and college has increased. Some people now work more than one job just to get by.
This video explains how the middle class was built after World War II and what has happened in the last 50 years to make life harder for many working people.

To learn more about what changed and what can be done, watch the full video.

Vocabulary Questions:

  1. What does “hallmark” mean? “You didn’t need to be rich to live comfortably — a steady job, a home, two kids, a car, and a safe neighborhood. These were the hallmarks of a middle class life that millions of Americans achieved and expected to pass on.” Use it in a sentence. Give a synonym.
  2. What does “to live paycheck to paycheck” mean? “More than half of Americans now live paycheck to paycheck.” Use it in a sentence. Give a similar expression.
  3. Explain the concept: “economic ladder”. “Racial and gender inequality were widespread, but the economic ladder, for many, was real. If you worked hard, you could climb.” Use it in a sentence.

Discussion Questions:

  1. Share your thoughts on the insights talked about in this video.
  2. Why do you think the speaker says, “The game is rigged.”?
  3. What are some things needed to rebuild the middle class?
  4. Do you think working hard is still enough to succeed in today’s economy? Why or why not?
  5. How is it like to be middle class in a country like yours?

America First Could End the Age of Arbitrage

B2 – Upper Intermediate

President Donald Trump’s renewed “America First” agenda in 2025 is disrupting decades of globalization by targeting international tax and regulatory strategies. Proposals include imposing a 25% tariff on Apple if it doesn’t manufacture iPhones domestically and a 50% levy on imported steel and aluminum. These measures aim to dismantle complex international systems of tax, regulatory, and financial arbitrage that U.S. multinationals have long utilized to reduce domestic tax liabilities. For instance, pharmaceutical companies often report minimal profits in the U.S. while declaring substantial gains abroad, and insurers shift liabilities to jurisdictions like Bermuda for lighter regulations.

Read the article to know more about the proposed provision to tax foreign investors in U.S. assets could further affect global capital flows, potentially destabilizing international finance. While these policies seek to reinforce domestic equity, they risk undermining the foundational pillars of the global economic and financial system.

https://www.reuters.com/breakingviews/why-america-first-could-end-age-arbitrage-2025-06-06/?

Vocabulary Questions:

  1. What does “ceding reserve” mean? ” The industrial-scale transfer of life insurance policies by U.S. insurers to offshore jurisdictions – a process known as “ceding reserves” – provides a timely example.” Use it in a sentence.
  2. What does “golden goose” mean? “They can also short tax havens and lightly regulated jurisdictions in the anticipation that the golden geese will be flying home.” Use it in a sentence.
  3. What does “shadow bank” mean? “This is the edifice of international finance underpinned by the U.S. dollar. In a recent lecture, Hyun Song Shin of the Bank for International Settlements explained how, before 2008, liquidity in international markets was supplied by so-called shadow banks issuing private credit instruments.” Use it in a sentence.

Discussion Questions:

  1. Do you think prioritizing domestic production through tariffs is beneficial for a country’s economy in the long run or does it do more harm than good?
  2. How do you feel about taxing foreign investors in U.S. assets? Could that strengthen or weaken the U.S. economy?
  3. If you were running a global company, how would you respond to policies that limit tax and regulatory advantages abroad?
  4. Do you think the rest of the world will follow suit with their own “first” policies, or will they push back against this kind of economic nationalism?
  5. Is it fair for multinational corporations to shift profits and liabilities to lower-tax countries, or should they be taxed more strictly where they operate?

Amazon Will Not Disclose US Tariffs Cost on Its Website

B2 – Upper Intermediate 

There were talks that Amazon would display the costs of the US tariffs on its products on their website.  

However, Amazon has denied this and said that they never considered listing tariffs on their main retail website, but did on their low-cost Amazon Haul Store. They considered the idea, but it was never approved and implemented in the end.

Watch this video about Amazon and US tariffs.

Vocabulary Questions:

  1. Define “on-shoring”. “It’s another reason why we are on-shoring critical supply chains here at home to shore up our own critical supply chain and boost our own manufacturing here.” Use this word in a sentence.
  2. What does “duty” mean here, “This month, Trump signed an executive order that closes a trade loophole that has allowed low-value packages from China and Hong Kong to enter the United States free of duties.”? Use this word in a sentence.
  3. What does “to trade near flat” mean? “The comments by the White House sent Amazon shares down more than 2% in pre-market trading, but they rebounded and were trading near flat by midday.”? Use this phrase in a sentence.

Discussion Questions:

  1. How is Amazon affected by the growing political and trade tensions between the US and China?
  2. Amazon decided not to display the costs of tariffs on products on its website. What is your opinion on this?
  3. Do you agree or disagree that “Amazon should be more transparent about tariff costs.” What do you think are the advantages and disadvantages of doing this?
  4. The White House accused Amazon of a hostile political act. Share your insights on this.
  5. What are your thoughts on low-value packages from China and Hong Kong entering the United States not duty free anymore? What impact could this have on China and Hong Kong and on the US?

The Great Depression


B2 – Upper Intermediate

Global economic conditions have been profoundly impacted by US tariffs. One significant outcome that many people worry about is a major depression, which is the worst economic collapse in modern history. People would go from lavishly celebrating to losing everything, including their life savings.

Watch the video below to learn more about the great depression.

Vocabulary Questions:

  1. Define “snowball effect”. “As the public learned about these incredible returns from the stock market, everyone began putting money in it and talking about it more. This created a snowball effect.” Use this term in a sentence.
  2. What does “to fill the air” mean? ” “Extreme greed and unrealistic fantasy filled the air.” Use this phrase in a sentence and give a synonym.
  3. In business, what does it mean “to close the doors“? So if a local bank closed its doors, people lost their money.” Use this idiom to make your own sentence and give a synonym.

Discussion Questions:

  1. Do you think another Great Depression will begin in this century? If so, why?
  2. How would a Great Depression affect your life right now?
  3. What lessons have we learned from the Great Depression?

Tariffs on China Bring Irreversible Damage to American Businesses

B2 – Upper Intermediate

The trade relationship between the United States and China has become a topic of considerable debate, especially with the tariff war that escalated around 2018. This conflict has raised questions about whether America is specifically targeting China or if it is pursuing broader economic strategies. 

The U. S. is motivated by a desire to protect its economic interests, promote fair trade practices, and limit China’s technological advancements. This trade conflict illustrates a broader geopolitical struggle that transcends mere economics, impacting global alliances and the future of international trade. Ultimately, the path forward will require careful negotiation and mutual understanding to avoid further escalation and foster a healthier trade relationship. 

Please read the article and let’s talk about it later.

https://www.cnbc.com/2025/04/12/trump-tariffs-on-china-mean-irreversible-damage-for-most-businesses.html

Vocabulary Questions:

  1. What does  “to hit like a ton of bricks” mean? “Canceled freight orders and abandoned freight from China are quickly becoming the norm in the trade war between the U.S. and China, according to supply chain executives, as businesses across U.S. industries put a full stop on container exports, with the tariffs hitting like a ton of bricks.” Use it in a sentence.
  2. What does “low margin good ” mean? “As it became clear over the last week that China would remain the main target of the Trump administration’s tariffs policy — after the 90-day reprieve was granted to all other countries expected to be hit with new tariffs — the message that came through is that lower-margin goods cannot sustainably be produced in China.” Use it in a sentence.
  3. What does “liner service” mean? “Murphy warned that on the container liner side of the freight business, the drop in bookings coupled with the possibility of shipbuilding fees on “Chinese” vessels also going into effect next week, will result in a “massive restructuring of all liner services to North America.” Use it in a sentence.

Discussion Questions:

  1. What can you say about the article?
  2. “And it will take months to sort out the mess, with congestion and freight rate spikes for months to come.” When do you think this will end?
  3. “The biggest concern here is a complete uncertainty of the actual end-game of the Trump administration.” What do you think are the administration’s motives?
  4. “Many shippers are deploying a ‘wait and see’ approach.” How long do you think they can wait?