Lesson Plan

• Describe how declining communication costs reduce transaction costs in international trade.
• Explain how lower communication costs facilitate market information, supply‑chain coordination and services trade.
• Analyse the impact of reduced communication costs on the growth of multinational enterprises and digital trade.
• Evaluate the extent to which cheap communication can offset trade restrictions.

• Projector and screen
• PowerPoint slides with historical cost table
• Printed handout of the communication‑cost table
• Whiteboard and markers
• Worksheet containing a case‑study analysis
• Short video clip of e‑commerce platforms

Begin with the question, “How can you buy a product from halfway around the world in seconds and chat with the seller instantly?” Students recall prior learning about transport costs and transaction costs. Explain that today’s success criteria are to describe, explain and evaluate how falling communication costs drive globalisation.

1. Do‑now (5') – Quick quiz on components of transaction costs.
2. Mini‑lecture (10') – Present the historical decline in communication costs using the table and highlight the link to trade.
3. Guided analysis (12') – In pairs, complete a diagram that connects lower C_comm to market information, supply‑chain coordination and services trade.
4. Case‑study discussion (10') – Examine e‑Bay/Amazon examples; discuss how cheap communication enables cross‑border sales.
5. Theory application (8') – Use the formula TC = P + C_comm + C_transport + C_info to calculate the effect of a 50 % drop in communication costs.
6. Exit ticket (5') – Write one sentence summarising how communication costs influence globalisation.

Recap the key points: falling communication costs cut transaction costs, boost market information, and expand digital services trade. Collect exit tickets and set a homework task to research a recent digital platform (e.g., TikTok, Shopify) and write a brief paragraph on how cheap communication underpins its global reach.