Lesson Plan
Course Title: Global Business
Session Title: Lesson 1.4- Foreign Exchange Market
Performance Objective (LSI Quadrant 1-Why are we doing this?):
The purpose of this lesson is to help students gain a basic understanding of the impact of a
European common currency and the role of the Foreign Exchange Market.
Approximate Time:
One day
Specific Objectives (LSI Quadrant 1-Why are we doing this?):
SWBAT (Student Will Be Able To…)
1.3D-Explain the impact of the common European currency.
1.4A-Explain how a foreign exchange market functions.
Terms:
Impact – Influence, effect.
Common – Widespread, general. Belonging equally to, or shared alike by, two or more or all in
question.
European – Of or pertaining to Europe or its inhabitants.
Currency – Something that is used as a medium of exchange; money.
Foreign Exchange Market – Global market wherein convertible currencies are traded and their
conversion rates are determined. It is the world's largest financial market in which every day, on
average, some one and one-half trillion dollar worth of currencies are bought and sold. Out of this
only about 15 percent is traded for goods or services, the balance 85 percent is traded by the
individual and institutional speculators.
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Preparation
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the
activities may result in the elimination of any or all of the TEKS listed.
1.3 and 1.4. The student analyzes the role of the International Monetary System in the economy
and The student identifies the importance of international financial markets.
1.3D Describe the role of the International Monetary Fund.
1.4A Explain how a foreign exchange market functions.
Interdisciplinary Correlations:
English-English 1
 110.31(b)(1). Reading/Vocabulary Development. Students understand new vocabulary and
use it when reading and writing.
 110.31(b)(11). Reading/Comprehension of informational text/procedural texts. Students
understand how to glean and use information in procedural texts and documents.
Occupational Correlation (O*Net – www.onetonline.org/):
Job Title: Securities and Commodities Traders
O*Net Number: 41-3031.03
Reported Job Titles: This title represents an occupation for which data collection is currently
underway.
Tasks: Agree on buying or selling prices at optimal levels for clients, devise trading, option, or
hedge strategies, monitor markets or positions.
Soft Skills: None reported at this time.
Teacher Preparation:
 The teacher will review the terms in the outline, presentation slides, and any provided
materials to become familiar with the lesson.
 Teacher should locate and evaluate various resources and websites before the lesson.
 Teacher will have assignments and website information ready to distribute to students.
References:
International Business (3E), Dlababy & Scott, Thompson Southwestern
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http://www.xe.com/ucc/
http://europa.eu/legislation_summaries/economic_and_monetary_affairs/introducing_euro_practic
al_aspects/l25007_en.htm
http://www.fleur-de-coin.com/eurocoins/introduction.asp
http://www.youtube.com/watch?v=jo4z26THnpo
Instructional Aids:
 Lesson 1.4 Presentation-Foreign Exchange Market
 Access to YouTube, Europa, and Fleur-de-Coin websites
 Access to businessdictionary.com and dictionary.com
 Textbook
 Access to XE website (to calculate exchange rates)
Materials Needed:
Lesson 1.4 Presentation-Foreign Exchange Market
Lesson 1.4-Formal Assessment
Lesson 1.4-Formal Assessment Key
Equipment/Software Needed:
 Projection unit
 Instructor computer
 Internet access
 Electronic system for taking notes
Learner Preparation:
Purpose of Assignment and Need to Know Terms - Snapshots of slides below:
Introduction
Introduction (LSI Quadrant I-Why are we doing this lesson?):
ASK: What if the world used a single monetary system?
ASK: Would that be bad or good?
ASK: How would it affect our nation? How would it affect you?
ASK: What if the system was the Euro and not the US dollar?
ASK: What if the system was the US dollar and not the Euro?
ASK: Did you know that because most countries have their own form of currency, there is
something called the Foreign Exchange Market that provides information about currency
exchange rates, and that people trade foreign currency all the time and make money by doing so?
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SAY: Not goods and services; they trade money and can make money.
SAY: Today we’re going to look into how the Foreign Exchange Market works and look into the
idea of creating a common currency to be used around the world.
Outline
Outline (LSI Quadrant II-What are we doing in this lesson?):
Instructors can use the presentation program/software, slides, handouts, and notes pages in
conjunction with the following outline.
MI
Outline
I. Introduction (Day 1)
A. Lesson Objectives
B. Need to Know Terms. (See provided
presentation for details.)
Notes to Instructor
There is no provided
discovery activity for this
lesson.
II. Guided Instruction (Day 1)
A. Instruction-Common Currency
B. Class discussion questions
Slides 4-6 in
presentation. Includes
links to online articles
regarding the history of
the Euro, what it looks
like, the thought of
moving to one, common
currency.
III. Guided Instruction (Day1)
A. How the Foreign Exchange Market
works.
Slides 7 and 8 in
presentation. Includes a
link to a video posted on
YouTube.
IV. Review (Day 1)
Use presentation
template to highlight key
pieces of information.
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V. Formal Assessment (Day 1)
Verbal
Linguistic
Logical
Mathematical
Visual
Spatial
Musical
Rhythmic
Use provided
assessment documents.
Bodily
Kinesthetic
Intrapersonal
Interpersonal
Naturalist
Application
Introduction-(LSI Quadrant III-How are we going to do this?):
Purpose of Assignment and Need to Know - Snapshots copied and pasted below:
Guided Instruction (LSI Quadrant III-How are we going to do this?):
Instruction and Discussion Questions - Slide snapshots copied and pasted below:
Informal Assessment (LSI Quadrant III-How are we going to do this?):
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Existentialist
Check one or all of the following:
• Need to Know terms
• Class participation in discussion questions
• Notes taken during class instruction
• Your Currency Discussion/Activity
Summary
Review (LSI Quadrants I-Why are we doing this lesson? and IV-Extending the lesson):
Purpose of Assignment, Review, and Extensions - Slide snapshots copied and pasted below:
Evaluation
Informal Assessment (LSI Quadrant III):
Check one or all of the following:
• Need to Know Terms
• Discovery Activity
• Notes taken during class lecture/discussion
• Currency Activity
Extension
Extension/Enrichment (LSI Quadrant IV-Extending the lesson):
Extensions-slide copied and pasted below:
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Formal Assessment (LSI Quadrant III-How are we doing this?)
Lesson 1.4 Formal Assessment (provided)
Grading Rubric-Source: http://www.rcampus.com/rubricshowc.cfm?code=F4A59A&sp=yes&
Short Answer Test Assessment Rubric
Needs
No Answer
Improvement
0 pts
4 pts
Content
10 pts
No Answer
Did not answer
question.
Organization
10 pts (Answers
are clearly thought
out and
articulated.)
Writing
Conventions
10 pts (Spelling,
punctuation,
grammar, and
complete
sentences.)
No Answer
Did not answer
question.
No Answer
Did not answer
question.
Needs
Improvement
Answers are
partial or
incomplete. Key
points are not
clear. Question
not adequately
answered.
Needs
Improvement
Organization and
structure detract
from the answer.
Needs
Improvement
Displays over five
errors in spelling,
punctuation,
grammar, and
sentence
structure.
Adequate
6 pts
Adequate
Answers are
not
comprehensive
or completely
stated. Key
points are
addressed, but
not well
supported.
Quality
8 pts
Quality
Answers are
accurate and
complete. Key
points are
stated and
supported.
Exemplary
10 pts
Exemplary
Answers are
comprehensive,
accurate, and
complete. Key
ideas are
clearly stated,
explained, and
well supported.
Adequate
Quality
Exemplary
Inadequate
organization or
development.
Structure of
the answer is
not easy to
follow.
Organization is
mostly clear
and easy to
follow.
Well organized,
coherently
developed, and
easy to follow.
Adequate
Quality
Exemplary
Displays three
to five errors in
spelling,
punctuation,
grammar, and
sentence
structure.
Displays one to
three errors in
spelling,
punctuation,
grammar, and
sentence
structure.
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Displays no
errors in
spelling,
punctuation,
grammar, and
sentence
structure.
Lesson 4 - Foreign Exchange Market
Formal Assessment
Objective: To determine your level of understanding of a common European currency
and how the Foreign Exchange Market works.
Please answer the following questions (be specific and detailed).
1. What kind of impact would a common European currency have on us as a nation?
2. What kind of impact would a common European currency have on you as an individual?
3. What is the function of the Foreign Exchange Market?
4. What is the one key piece of information a person must know to conduct business in the Foreign
Exchange Market?
Each of the first three questions will be worth 30 points and the fourth question will be worth 10
points.
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Lesson 4 - Foreign Exchange Market
Formal Assessment
Objective: To determine your level of understanding of a common European currency
and how the Foreign Exchange Market works.
Please answer the following questions (be specific and detailed).
5. What kind of impact would a common European currency have on us as a nation? Answers will
vary and should include key pieces of information gained from articles/discussions.
6. What kind of impact would a common European currency have on you as an individual?
Answers will vary and should include key pieces of information gained from articles/discussions.
7. What is the function of the Foreign Exchange Market? The function of the Foreign Exchange
Market is a system in which traders exchange money on a client’s behalf (or individuals can do
so online on their own behalf) from one currency to another with the intention of making a
profit. Answers can also include specifics learned from the video/discussions.
8. What is the one key piece of information a person must know to conduct business in the Foreign
Exchange Market? Need to know is the current exchange rate of each currency.
Each of the first three questions will be worth 30 points and the fourth question will be worth 10
points.
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