**Lesson Plan: Foreign Trade - Visible and Invisible, Terms of Trade Comparison Concept**
**Grade Level:** Senior Secondary 1
**Subject:** Commerce
**Duration:** 50 minutes
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### **Lesson Objectives:**
1. **Define foreign trade and distinguish between visible and invisible trade.**
2. **Identify examples of visible and invisible trade.**
3. **Understand the concept of terms of trade and its importance.**
4. **Evaluate factors affecting terms of trade.**
### **Materials Needed:**
- Whiteboard and Markers
- Projector or Smartboard
- Handouts with key concepts
- Case study examples
- Worksheets for practice
- Access to the Internet for research (if applicable)
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### **Lesson Outline:**
**Introduction (5 minutes):**
- **Greeting & Attendance:**
- Begin with a warm welcome and take attendance.
- **Hook:**
- Ask students if anyone has bought something online from another country or used a service from another country (like an online course or consultancy).
**Direct Instruction (15 minutes):**
- **Concept of Foreign Trade:**
- Define **foreign trade** as the exchange of goods and services across international borders.
- **Types of Foreign Trade:**
- Explain **Visible Trade**:
- Trade of tangible goods that can be physically seen and touched.
- Examples: Exporting cars, importing electronics.
- Explain **Invisible Trade**:
- Trade of intangible goods and services that cannot be physically touched.
- Examples: Banking services, tourism, and intellectual property.
- **Terms of Trade:**
- Define **terms of trade** as the ratio at which a country's export prices are relative to its import prices.
- Importance in understanding a country's economic health.
- Example: If a country exports 100 TVs for $1,000 (total $100,000) and imports 200 tons of steel for $2,000 (total $400,000), the terms of trade would be the ratio of these two values.
**Guided Practice (15 minutes):**
- **Group Activity:**
- Divide the class into small groups.
- Provide each group with handouts containing different scenarios of visible and invisible trade.
- Ask them to categorize the scenarios and discuss the possible impacts on the economy.
- **Case Study Analysis:**
- Present a case study of a country's trade (real or hypothetical).
- Analyze the terms of trade and discuss what the values imply for that country's economic situation.
**Independent Practice (10 minutes):**
- **Worksheet Activity:**
- Distribute worksheets where students must identify whether given examples are visible or invisible trade and calculate terms of trade from given data.
- **Research Task:**
- Assign a short research task where students find current news articles related to a country improving or struggling with its terms of trade.
**Closure (5 minutes):**
- **Summary:**
- Recap key points discussed in class.
- **Questions and Answer Session:**
- Allow students to ask any lingering questions.
- **Homework Assignment:**
- Assign students to write a brief essay on how an improvement or decline in terms of trade can impact the overall economy of a country.
- **Feedback:**
- Collect feedback on the lesson to understand which areas students found challenging or interesting.
**Assessment:**
- **Formative Assessment:**
- Participation in group activities and class discussions.
- Accuracy in worksheet and scenario analysis.
- **Summative Assessment:**
- Homework essay evaluating understanding of terms of trade impact.
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### **Extensions:**
- **Advanced Research:**
- Students interested in further understanding can research WTO regulations and their impact on international trade.
- **Technology Integration:**
- Use online simulation games related to international trade to provide a practical understanding of the topic.
By the end of this lesson, students should have a foundational understanding of foreign trade, the difference between visible and invisible trade, and the significance of terms of trade in determining a country's economic health.