Global Business Exchange Rates and Economic Factors
Lesson Plan
Performance Objective The student will identify the economic factors that influence exchange rates and explain how these factors work. Terms  Exchange Rate – The amount of currency of one country that can be traded for one unit of the currency of another country.  Inflation – An increase in the average prices of goods and services in a country.  Interest Rate – The cost of use for someone else’s money.  Risk – An uncertainty of an event or outcome.  Imports – Products bought from businesses in other countries.  Exports – Products sold in other countries. Time When taught as written, this lesson should take approximately two to three class periods to teach. 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. Global Business  130.118 (c) Knowledge and Skills (4) The student identifies the importance of international financial markets globally. The student is expected to: (b) identify the economic factors that influence exchange rates and explain how these factors work. 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. Copyright © Texas Education Agency, 2014. All rights reserved.
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Occupational Correlation (O*Net – www.onetonline.org/) Job Title: Economists O*Net Number: 19‐3011.00 Reported Job Titles: Economic Analyst, Economic Consultant, Project Economist, Economic Analysis Director Tasks 
Study economic and statistical data in area of specialization, such as finance, labor, or agriculture. 
Conduct research on economic issues and disseminate research findings through technical reports or scientific articles in journals. 
Compile, analyze, and report data to explain economic phenomena and forecast market trends, applying mathematical models and statistical techniques. Soft Skills: Critical Thinking, Active Listening, Mathematics, Judgment and Decision Making, Speaking, Complex Problem Solving, Writing Accommodations for Learning Differences It is important that lessons accommodate the needs of every learner. These lessons may be modified to accommodate your students with learning differences by referring to the files found on the Special Populations page of this website. Preparation  Review and familiarize yourself with the terminology, any and all website links, and any resource materials required.  Have materials and websites ready prior to the start of the lesson. References 
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International Business (3E), Dlababy & Scott, Thompson Southwestern http://rubistar.4teachers.org/ Instructional Aids 
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Lesson 2.2 Exchange Rates and Economic Factors Presentation Instructor Computer/Projection Unit Student access to computers Copyright © Texas Education Agency, 2014. All rights reserved.
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Outline
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Introduction (Day One) A. Objectives B. Vocabulary C. Gold Standard Discussion II. Discovery Activity (Day One) A. Built in discovery opportunities for elements of the three economic factors that impact currency values III. Instruction (Day One‐Two) A. Economic Factors Notes B. Discuss Examples Existentialist Interpersonal IV. Formal Assessment (Day Two‐Four) A. Foreign Currency Project B. Present projects using posters C. Identify economic factors that influence exchange rates and explain how the diagram represents these factors for Multiple Intelligences Guide specific countries D. Extension Activities for early finishers Intrapersonal Kinesthetic/ Bodily Introduction
Logical/ Mathematical Musical/Rhythmic Students can create a vocabulary presentation or put the words, definitions, and images/examples in an electronic notebook if computer access is available. Discussion notes are in presentation. Students can work on their own or with a partner to research inflation, interest rates, and political factors. Students will take notes in the format of teacher’s preference. Guide students through discovery and notes in understanding how the economic factors influence a currency’s value and exchange rate. Students can work alone or in partners to research a specific country’s currency and the economic factors that influence the current value and exchange rate. Students will create a poster including images for currency, balance of payments, economic conditions, and political stability for the country. Students will explain the poster to a group of students or the Verbal/Linguistic Visual/Spatial Naturalist class to show understanding of the material. Copyright © Texas Education Agency, 2014. All rights reserved.
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Introduction
The main purposes of this lesson are to help students understand the following concepts: Understand and explain the way the value of currency is determined.  Ask  Have you ever heard of the “Gold Standard” for money?  Say  From 1930 to 1971, the value of the U.S. dollar was backed up by actual gold. This is no longer the case. What do you think backs up American money if it is no longer gold? Application
Discovery Activity  Discovery opportunities for elements of the three economic factors that influence currency values, which are built into each slide of notes for balance of payments, economic conditions, and political stability. Guided Practice  Guided questions and discussion  Notes and examples Independent Practice Complete poster project showing visuals for the factors influencing the value of a country’s currency. Summary
Review and Lesson Evaluation 
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Review key elements of the foreign exchange market and how they relate to the function of the market. Students will explain what they have learned in projects and presentations. Review the lesson’s objectives at the end and have students reflect on what they have learned. Evaluation Review
Informal Assessment Any and all of the following can be used as informal assessments:  Check vocabulary presentation  Discovery activities in notes Copyright © Texas Education Agency, 2014. All rights reserved.
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Discussion Formal Assessment Use rubric provided to assess foreign currency project. Enrichment
Extension  Research an electronic money system like bitcoin and explain the advantages and disadvantages.  Analyze several countries’ currency, and identify the types of events that are commonly portrayed on a country’s coins and currency.  Create a currency and explain the way value will be determined. Copyright © Texas Education Agency, 2014. All rights reserved.
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Assignment for Lesson 2.2 Exchange Rates and Economic Factors Foreign Currency Project Formal Assessment Objective: Research a country’s currency and identify and explain how the three economic factors influence the currency value and exchange rate. Directions: Create a poster representing the three main economic factors that influence exchange rates. The poster will be used as an instructional tool to teach others.  Create a poster to serve as a visual aid for you when presenting this information to the class. Your poster should include a visual (table, graph, chart, drawing, picture, etc.) for each of the following depicting the country’s:  Currency and Exchange Rate  Balance of payments  Economic Conditions  Political Stability  Be prepared to explain the country mates about the visual (table, graph, chart, drawing, picture, coins and currency. You will use your poster as a visual aid during the presentation.  Make sure you cite all websites and images used to create your presentation. Copyright © Texas Education Agency, 2014. All rights reserved.
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Lesson 2.2 Foreign Currency Poster Project Rubric Student Name: ________________________________________ CATEGORY Amount of Information 20 Pts All topics are addressed with at least four visual representations on the poster of currency and three economic influences. Quality of Information Visuals clearly relate to the main topic and shows in‐depth understanding of the information. 15 Pts All topics are addressed with at least three visual representations on the poster of currency and three economic influences. Visuals clearly relate to the main topic and shows adequate understanding of the information. Creativity/Neatness Diagrams and illustrations are neat, accurate, and show the student's understanding of the topic. Diagrams and illustrations are somewhat neat, and accurate, and show the student understands the topic. Sources All sources (information and graphics) are accurately documented in the desired format. Presentation Students present information in a clear and concise way and shows full understanding of the material and use of poster as a visual aid. All sources (information and graphics) are accurately documented, but a few are not in the desired format. Students present information in a somewhat clear and concise way and show adequate understanding of the material and objectives. Students use poster as visual aid. Total Points Earned _______/100 Pts. 10 Pts All topics are addressed with at least two visual representations on the poster of currency and three economic influences. Visuals are vague and do not clearly relate to the topic. Minimal understanding of the information is demonstrated. Diagrams and illustrations are not neat and show limited understanding of the information. 0‐5 Pts All topics are addressed with at least one visual representation on the poster of currency and three economic influences. Visuals have little or nothing to do with the related topic. Understanding of material is not demonstrated. All sources (information and graphics) are accurately documented, but many are not in the desired format. Students present information in a clear or concise way and show adequate understanding of the material and objectives. Student does not use poster while presenting. Diagrams and illustrations are not accurate OR do not add to the reader's understanding of the topic. Images are missing from the presentations. Some sources are not accurately documented. Students do not present information. Students are not able to show understanding of the material and objectives. Students do not have a poster as a visual aid. Copyright © Texas Education Agency, 2014. All rights reserved.
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Copyright © Texas Education Agency, 2014. All rights reserved.
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