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.
Balance of Payments

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


 
MAJOR CONCEPTS:
 Analyze financial charts
 
INSTRUCTIONAL OBJECTIVES:
 Students will:
· identify current international trade positions of the United States;
· identify U.S. balance of payments;
· list factors that affect international business competition; and,
· explain the types of competitive market situations.

Key Terms:
balance of payments
direct barter
free-trade zone
industry
monopolistic competition
pure competition
trade deficit
 
MATERIALS:
· Transparencies of Handouts #1, #2, #3, #4, #5, #6, and #7
· Overhead Projector
 
RATIONALE:
 In order to have a foundational understanding of the balance of payments, students need to be able to analyze data that comes in the form of charts and graphs.To further enhance this understanding, students need to be able to research up-to-date data that illustrates the effect that trade has on finance.
 
PROCEDURE:
 1. Develop a glossary of terms from the key terms above.
2. Conduct a discussion on the transparencies, effecting the impact that the balance of trade and balance of payments have on global finance.
 
EVALUATION: Close the lesson by having each student research a specific country and the current effects that the balance of trade has had on financial matters.
 
AUTHOR:
  Gary Schepf, Nimitz High School, Irving, TX.
EDITORS:
Les Dlabay, Lake Forrest College, Wildwood, IL.
Robert Ristau, Eastern Michigan University (ret.), Ypsilanti, MI.

 
 
 
 
 

Click here to download Microsoft Word version of the plan including handouts.