Lesson correlates with National Business Education Association National Standards for Business Education, 1995, Reston, Virginia.
· · Standard V.  Finance ... Achievement Standard:  Explain the role, importance, and concepts of international finance and risk management.
 A.  Currency and Exchange
· Level 3 (Secondary) - Performance Expectations:  Describe how economic conditions, balance of payment situations, and political issues affect currency values.
Currency and Political Organization

 
TIME REQUIRED:
60 minutes
 
RECOMMENDED GRADE:
Grades 9-12


 
MAJOR CONCEPTS:
 Political effect on currency
INSTRUCTIONAL OBJECTIVES:
 Students will:
· describe the political effects of foreign trade;
· list factors that affect international business competition; and,explain the types of competitive market situations.

Key Terms:
Association of Southeast Asian Nations (ASEAN)
Carribean Community (CARICOM)
Central American Common Market (CACM)
direct barter
economic community
Economic Community of West African States (ECOWAS)
European Community (EC)
free-trade Agreement on Tariffs and Trade (GATT)
International Chamber of Commerce (ICC)
International Monetary Fund (IMF)
Latin American Free Trade Association (LAFTA)
Latin American Inegration Association (LAIA)
North American Free Trade Agreement (NAFTA)
trade deficit
United Nations
World Bank
 
MATERIALS:
· NONE
 
RATIONALE:
 In order to understand the global impact on finance caused by legislation, students need to have an understanding of the organizations and legislation that exists.Once these have been identified, a study of the impact that they have on the currency market needs to be evaluated to determine the future actions necessary for the global financial market.
PROCEDURE:
 1. Develop a glossary of terms for the key terms above.
2. Discuss the effects that politics have on the economy, emphasizing the changes in the value of currency.  Include in the discussion the economic conditions of inflation, interest rates, and unemployment.
3. Discuss the emotional effects of global trade associations and agreements.
 
EVALUATION: Close the lesson by preparing a written report, summarizing the effects that trade agreements and/or associations have had on the global market.  Include any recent events that have caused a major impact in the global market.
 
AUTHOR:
  Gary Schepf, Nimitz High School, Irving, TX.
EDITORS:
Les Dlabay, Lake Forrest College, Wildwood, IL.
Robert Ristau, Eastern Michigan University (ret.), Ypsilanti, MI.

 
 
 
 
 

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