**Lesson Plan: Commerce for Senior Secondary 2 - Topic: Commodity Exchange**
---
**Grade Level:** Senior Secondary 2
**Subject:** Commerce
**Duration:** 80 minutes
**Topic:** Commodity Exchange
---
### **Objectives:**
By the end of the lesson, students should be able to:
1. Define and understand the concept of a commodity exchange.
2. Identify the main functions of a commodity exchange.
3. Explain the importance of commodity exchanges in trade and economy.
4. Discuss examples of major commodity exchanges around the world.
5. Understand the types of commodities traded and the process involved.
### **Materials Needed:**
- Textbook on Commerce
- Chart paper and markers
- Projector and computer for multimedia presentation
- Case studies or articles about commodity exchanges
- Handouts with key terms and definitions
### **Lesson Outline:**
1. **Introduction (10 minutes)**
- **Greeting and Attendance:** Greet students and take attendance.
- **Warm-up Activity:** Ask students what they understand by the term “commodity” and how they think commodities are traded globally.
- **Lesson Objective:** Briefly introduce the objectives of today’s lesson.
2. **Lesson Presentation (25 minutes)**
- **Definition & Concept:** Explain what a commodity exchange is.
- A commodity exchange is a market where various commodities and derivatives products are traded.
- Provide key terms: commodities, derivatives, futures contracts, spot market.
- **Functions of Commodity Exchange:** Discuss the functions and roles.
- Price discovery
- Risk management
- Supply and demand matching
- Providing a platform for trade
- **Importance of Commodity Exchanges:** Explain how these exchanges contribute to the global economy.
- Liquidity
- Standardization
- Transparency
- Efficiency in trade processes
3. **Examples of Commodity Exchanges (15 minutes)**
- **Global Examples:**
- Chicago Mercantile Exchange (CME)
- London Metal Exchange (LME)
- Multi Commodity Exchange (MCX) in India
- Tokyo Commodity Exchange (TOCOM)
- Show a short multimedia presentation highlighting these major exchanges.
4. **Types of Commodities & Trading Process (20 minutes)**
- **Types of Commodities:**
- Agricultural commodities (wheat, coffee, cotton)
- Energy commodities (oil, natural gas)
- Metal commodities (gold, silver, copper)
- **Trading Process:**
- Explain futures contracts and how they work.
- Market participants: hedgers, speculators, arbitrageurs.
5. **Group Activity (10 minutes)**
- Divide students into small groups and provide each group with a case study or news article about a recent event involving a commodity exchange.
- Instruct them to discuss and answer questions related to the case study.
6. **Discussion & Presentation (10 minutes)**
- Groups present their findings and discussions to the class.
- Assess each group’s understanding of the concepts discussed.
7. **Conclusion (5 minutes)**
- **Summary:** Recap the key points of the lesson.
- **Questions & Answers:** Allow students to ask any questions for clarification.
- **Closing Remarks:** Reinforce the importance of understanding commodity exchanges in global trade.
8. **Assignment:**
- Provide a written assignment where students will research and write a report on a specific commodity exchanged on one of the major exchanges covered in the lesson. They should include the history, current trends, and future prospects of that commodity.
### **Assessment:**
- Group activity participation and presentation.
- Class participation and questions.
- Evaluation of the written assignment.
---
**Note to Teacher:**
Ensure that the lesson is interactive and encourage students to engage by asking questions and participating in discussions. Utilize multimedia resources to make the content more accessible and interesting. Identify students who may need additional support or clarification on certain concepts and provide extra assistance as needed.