Production Requirements

Annual Requirements

Food

Per year

Energy Generation

Per every 1,000 units of GDP that you exceed (i.e.: $1,000 = ; €1,001 = )

Construction Requirements

Productivity Improvements(Improves cost efficiency and makes more resources accessible)

Infrastructure Technology

Light Industry

Each

High Capacity Factory

Each

Office Tower Construction

Per 10 stories

Any International Action, Summit, or Negotiation

Per deal

Order of Play

Order of Play
  1. Pay Interest, fees, debt re-payment, and pay annual food and oil

2. Collect Government Subsidies and Rental Income
3. Free for all for everything else (i.e. real time simulation)
4. Adjust your government’s monetary and fiscal policy
International Arrangements
Subsidiary / Franchisee / Licensee
FACTORY: You own it
FEES: None / FACTORY: You own it
FEES: Pay per resource made / FACTORY: They own it
FEES: Pay per agreement per year
Price of Resources
Base Price (€£$¥ 10 to start) + Taxes (see below) + Other Fees (Country Specific)
Taxes on Resources
One €, £, ¥, or $ for every 4.9% of corporate taxes
0 – 4.9%
€£$¥ 1 / 5 – 9.9%
€£$¥ 2 / 10 – 14.5%
€£$¥ 3

Rules of Play

Roles to Fill

For the Government:

  1. PM & Minister of Finance (borrowing, tax levels, spending levels, trade deals with countries)
  2. Governor of the Central Bank (interest rates, reserve ratio, printing money)

For the Corporation:

  1. CEO – Chief Executive Officer (negotiating, deals with companies, interaction with other corporations)
  2. CFO – Chief Financial Officer (all calculating, ordering production)

Each group must appoint a secretary each day. The secretary will record important events and info for the reflection. In addition, EU members’ Presidents must decide as a group on their Monetary policies.

Capital and Natural Resources

  • Resource Availability: each resource patch has a potential production of 6 resources per year.
  • To increase availability: increase investment infrastructure and technology
  • Production Capacity: Depends on how many factories you have on a resource. Large factories produce 3 units per year; small ones produce 1. Capacity cannot exceed availability.
  • To increase capacity: Build more factories
  • Productivity: In addition to improving access to resources,each investmentin infrastructure or technological research also improves efficiency and thus lowers the cost of resources.

Trading

  • NOTE: bartering resource for resource is forbidden. You will receive MARK penalties.
  • Pay for your resources in YOUR currency (money represents labour and production costs etc).
  • Pay for others’ resources in THEIR currency.
  • You only get to order once per turn. Exact order and change or back of the line.
  • Exchanging currency with the World Bank/IMF must be done in denominations of 10.
  • No trade agreements exist at the start of the game except for the EU.
  • Once nations have an agreement or “Most Favoured Nation Status,” they can’t be stopped from licensing, franchising, or investing in your country, nor can you be stopped from doing the same.

Foreign Expansion

  • All real property (buildings, land, factories AND resources) can be owned, purchased, sold, franchised, or licensed.
  • Franchised or licensed property can’t be used to produce for anyone except the franchisee, or licensee without his or her consent.
  • You can’t unilaterally end any type of agreement.
  • Agreements must be in writing and filed with the banker.


Office Tower Construction

  • Prices of construction may change without notice.
  • Rental rates are fixed unless stated otherwise. Rent of $1 (Canadian) per story is paid each year.
  • Once you build a tower, you own that block of land in Toronto. No one else may build there without an agreement.
  • A tower laid, is a tower played. It can NEVER be moved again. However, you can pay to have it demolished. Prices vary.
  • You must be able to place a finger between buildings.

Debt and Borrowing

  • You may borrow amongst yourselves, or from your central bank. Governments AND Corporations may borrow.
  • Loans must be repaid in the currency in which they were made.
  • Interest on borrowed funds, plus 5% of outstanding debt must be repaid at the beginning of each year or assets will be seized. The interest rate is YOUR nation’s overnight lending rate.

Monetary and Fiscal Policy

  • You have all four tools available: tax rates, spending levels, money supply, and interest rates. Changing them will have a variety of effects. They will impact inflation, economic growth, your currency rate, debt payments, and the subsidies your construction company receives.
  • Note that it’s the retail Prime Rate that determines if your citizens will borrow (set by banks); you can only influence it indirectly by changing the overnight target rate.
  • You begin with an M1 money supply of $£€300 (¥30,000). Only 90% of this is in circulation as required capital reserves start at 10% for each country.
  • Once inflation hits 10% a year, there’s a high probability you will not be able to produce the resources you need as a result of labour unrest due to eroding salaries.
  • The EU President for the day has the final decision on monetary policy for the EU.
  • Though European nations have control over their own fiscal policies, they should align it with the existing EU monetary policy so they don’t counteract each other
  • You must monitor your supply of currency very carefully; if you run out, it will be difficult to conduct business with the world. For the relationship MV=PQ, V is assumed to equal 3⅓, and P is 10 to start with (¥1,000 for Japan).
  • Make sure you monitor the leakages and injections caused by fiscal policy carefully. Their relative size to GDP is critical.

Miscellaneous

  • Failure at year’s end to pay 1 oil per $1000 of GDP and 2 food per country, will result in a decrease of about 5% of your GDP due to blackouts and starvation.
  • It’s your responsibility to ensure the banker enters information accurately
  • The game God (that’s Boulton) may introduce ‘authentic events’ into the game at a whim. Don’t argue with the game God.

Order Sheet

Year 1Year 2Year 3Year 4Year 5

Oil______

Minerals______

Brick______

Lumber______

Textiles______

Food______

Year 6Year 7Year 8Year 9Year 10

Oil______

Minerals______

Brick______

Lumber______

Textiles______

Food______

Resource Cost = Base Labour Price + Taxes

Leading Indicators

ALL groups MUST keep a yearly data log for later reflection

Year / Nominal
GDP / Real GDP Growth* / CPI / Tax Rate / Spending Levels / Budget Balance
(net leakage) / Overnight Rate / Prime Rate / Reserve Ratio / Bank Reserves / Exchange rate in $USD or in € if U.S.A. / Total Gov.
Debt / (%Δ MV) –
(%Δ PQ)
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

Use this data to produce economic graphs of leading indicators for your analysis.

Indicator Display Boards

This is the first screen. Here you enter choices for Fiscal and Monetary Policy. It also summarizes data for your economy, highlights victory conditions, states who’s currently winning.

These are the second and third screens. This is mostly for information. However, your borrowing and lending occurs here as well.

This is the third area used.

Economic Game Simulation

CIA 4U1

Instructions:

Using the “Observations During Gameplay” page, and your group’s daily reflections, type up a summary of the connections you made from this simulation. Do your most insightfulTHREE.

Category / Level / How to Improve
0 / 1 / 2 / 3 / 4 / Mark
Summative / Total Marks: /25
(i)Identified meaningful, specific, and significant events from the simulation, and
(ii)Related them insightfully to MAJOR course concepts; used course knowledge to explain game events.
(iii)Explained how the game events that you have described, EXACTLY resemble eventsthat have occurred in real life (in terms of economic factors, causes, and effects)
Data log completed each day
Proper graphs of your leading indicators must be included, and integrated seamlessly into the body of your text. Graphs and data must enhance your explanations, must be analysed and connected to course learnings, and must be used to explain your mistakes and successes.
Technical Specifications (1 mark removed for each error or omission). / /3
/3
/3
/1
/10
/5 / (Use the “What did I learn” template for four, and one should come from your own insight – make sure it relates to economics somehow. Check with me if you are uncertain.)
Clearly separate all five into parts (i), (ii), and (iii)
You MUST use actual, SPECIFIC events from the real world here in (iii). Cite references using APA.
Each individual must include (i) an electronic version of the group data log.
This must be your own work. Group related stats on the same graph. Don’t throw everything on one chart.
Can you see why economists track ‘leading indicators’ and use graphs? Do your decisions and their effects become clearer when looking at your graphs?
  • First page of file includes your email address (as a live link) and a copy of this rubric
  • Events in part (iii) are sourced APA style plus a live link
  • Each topic, and parts (i), (ii), and (iii) within each topic are clearly identified
  • Minimum 12 pt font and 1.5 spacing
  • Only one Google Docs file was shared.
  • File is named using the convention:
CIA_year_summative_sirname
Group Assignment – Policies & Trade / Total Marks: /40
Used existing knowledge of course concepts to achieve success. This is a GROUP mark. / /20A
/20T / Highest Real GDP (1st place 20, last place as low as 9)
OR
Greatest Wealth Accumulation in $USD (20 down to 9)
NOTE: No one on a team earns more than 75% if their country doesn’t have real GDP growth by the end of the game

Developed by J. Boulton for senior level business courses BBB 4M, BAT 4M, and CIA 4U

Observations During Gameplay

How do these
affect these / Why do we trade?
What makes it possible? Necessary? / Specialization / Economic interdependence and convergence / Impact of exchange rates on trade, and wealth accumulation / World Organizations – pros and/or cons / Scarcity, labour, supply and demand, and economic incentives / Importance of infrastructure, technology, productivity / Impact of the money supply and interest rates / Impact of inflation / Impact of fiscal policy
Why do we trade?
What makes it possible? Necessary?
Specialization
Economic interdependence and convergence
Impact of exchange rates on trade, and wealth accumulation
World Organizations – pros and/or cons
Scarcity, labour, supply and demand, and economic incentives
Importance of infrastructure, technology, productivity
Impact of the money supply and interest rates
Impact of inflation
Impact of fiscal policy

Connect the concepts on the left, with how they relate or interact with the ones above. (The shaded areas are duplicates, no need to fill them in.) Don’t just list anything. Pick the most insightful events; the ones that “brought it all together” for you.

The Actors

Canada / France / Germany / Italy / Japan / UK / USA
For the
Government
Head & Finance
Central
Bank
For the
Corporation
CEO
CFO

Duties:

For the Government:

  1. PM & Minister of Finance (borrowing, tax levels, spending levels, trade deals with countries)
  2. Governor of the Central Bank (interest rates, reserve ratio, printing money)

For the Corporation:

  1. CEO – Chief Executive Officer (ordering production, negotiating with companies, interaction with other corporations)
  2. CFO – Chief Financial Officer (all calculations, tracking and analysing leading indicators, providing data for reflections)

Developed by J. Boulton for senior level business courses BBB 4M, BAT 4M, and CIA 4U