Lesson Plan

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Lesson Plan
Grade: IGCSE Date: 17/01/2026
Subject: Economics
Lesson Topic: Effects of changes in foreign exchange rates on prices and demand for exports and imports
Learning Objective/s:
  • Describe how appreciation and depreciation of the home currency affect export and import prices.
  • Explain the impact of exchange‑rate movements on the quantity demanded for exports and imports.
  • Analyse how price elasticity influences the overall effect on the trade balance.
  • Apply the exchange‑rate formula to calculate changes in export and import prices.
  • Construct and interpret demand‑shift diagrams for exports and imports under different exchange‑rate scenarios.
Materials Needed:
  • Projector or interactive whiteboard
  • Slide deck with exchange‑rate tables and diagrams
  • Handout summarising formulas and the summary table
  • Calculator worksheets for price calculations
  • Sticky notes for quick exit tickets
 Introduction:
Begin with a quick poll: “If the pound became cheaper against the dollar, would British goods be more or less attractive abroad?” Link to prior learning on currency definitions and price elasticity, and outline that today students will predict price changes and demand shifts using real‑world examples. Success criteria: students can explain price effects, illustrate demand shifts, and calculate using the exchange‑rate formula.
Lesson Structure:
  1. Do‑now (5’) – students answer the poll question on sticky notes and share responses.
  2. Mini‑lecture (10’) – review FX rate, appreciation/depreciation, and present the export/import price formulas using the projector.
  3. Guided practice (12’) – in pairs, work through table scenarios to calculate new export and import prices with calculators.
  4. Diagram activity (10’) – draw export‑demand and import‑demand shifts on handouts, annotating the reasons for each shift.
  5. Trade‑balance case study (8’) – small groups discuss how elasticity affects the overall trade balance and present brief conclusions.
  6. Check for understanding (5’) – quick quiz via Kahoot or a show‑of‑hands question set.
  7. Exit ticket (5’) – write one sentence summarising how a depreciation affects export demand and import demand.
Conclusion:
Recap the key links between exchange‑rate movements, price changes and demand shifts, emphasizing the role of elasticity. Collect exit tickets as a retrieval check and assign homework: calculate the effect of a 10 % depreciation on export and import prices using provided data.