### Lesson Plan: Terms of Trading
#### Level: Senior Secondary 2 (SS 2)
#### Subject: Commerce
#### Duration: 60 minutes
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**Lesson Topic:** Terms of Trading
**Objectives:**
1. Define the key terms and concepts associated with trading.
2. Explain the importance of terms of trade in commerce.
3. Differentiate between various types of terms of trade.
4. Evaluate the impact of different terms of trade on business transactions.
**Materials:**
- Whiteboard and markers
- Projector and laptop for PowerPoint presentation
- Handouts with key terms and definitions
- Case study example
- Worksheets for group activity
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**Lesson Procedure:**
**1. Introduction (10 minutes)**
- **Greeting and Attendance (2 minutes)**
- Greet the students and take attendance.
- **Warm-Up/Review (3 minutes)**
- Start with a brief review of the previous lesson.
- **Objective Introduction (5 minutes)**
- State the objectives of today’s lesson.
- Explain why understanding terms of trading is crucial for anyone studying commerce.
**2. Lecture and Explanation (15 minutes)**
- **Definition and Explanation (10 minutes)**
- Use a PowerPoint presentation to define terms of trade.
- Introduce key terms such as invoice, credit terms, delivery terms, and payment terms.
- **Importance of Terms of Trade (5 minutes)**
- Discuss the importance of having clear terms of trade in business transactions.
- Highlight the role of terms of trade in minimizing disputes and ensuring smooth business operations.
**3. Types of Terms of Trade (15 minutes)**
- **Main Types (10 minutes)**
- Introduce and explain different types such as Free On Board (FOB), Cost, Insurance, and Freight (CIF), Ex Works (EXW), and Delivered Duty Paid (DDP).
- Provide real-world examples of how these terms are used in international and domestic trade.
- **Impact on Businesses (5 minutes)**
- Discuss how each term affects the responsibility, risk, and cost allocation between the buyer and seller.
**4. Case Study and Group Activity (15 minutes)**
- **Case Study Discussion (5 minutes)**
- Hand out or project a brief case study involving a business transaction with specific terms of trade.
- Read through the case study with the students.
- **Group Activity (10 minutes)**
- Divide students into small groups.
- Assign each group the task of analyzing the case study and identifying the terms of trade used.
- Each group should discuss the implications of these terms for the buyer and seller.
- Groups present their findings to the class.
**5. Conclusion and Assessment (5 minutes)**
- **Summary (3 minutes)**
- Recap the key points discussed in the lesson.
- **Assessment (2 minutes)**
- Distribute a quick quiz or have a short Q&A session to assess understanding.
- **Homework Assignment**
- Assign students to write a short essay on how terms of trade can influence international trade decisions.
**6. Closing (5 minutes)**
- Thank the students for their participation.
- Answer any remaining questions.
- Provide a brief overview of what will be covered in the next lesson.
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**Evaluation:**
- Monitor student engagement during the lecture and group activities.
- Review responses from the quick quiz or Q&A session.
- Collect and assess the homework essays for understanding and application of the lesson.
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**Notes for Teachers:**
- Ensure that all students are participating and understanding the material.
- Be prepared to provide further explanations or examples if students seem confused.
- Encourage students to think critically about how theoretical terms apply to real-world trading situations.
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This lesson plan aims to provide students with a comprehensive understanding of the terms of trading, an essential component of commerce.