Lesson Plan

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Lesson Plan
Grade: Date: 25/02/2026
Subject: Business Studies
Lesson Topic: how changes in exchange rates can affect businesses which import and export products and services, e.g. price, costs, competitiveness
Learning Objective/s:
  • Describe how currency appreciation and depreciation affect import costs and export prices.
  • Explain the impact of exchange‑rate movements on a business’s profitability and competitiveness.
  • Analyse simple exchange‑rate calculations to determine cost changes for imported inputs.
  • Evaluate at least two risk‑management tools for mitigating exchange‑rate risk.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed worksheet with exchange‑rate tables and calculations
  • Calculator or spreadsheet software
  • Case‑study handout (ABC Ltd. example)
  • Sticky notes for exit tickets
 Introduction:

Begin with a recent headline about the pound’s fluctuation against the dollar to capture interest. Ask students what they already know about buying goods from abroad and how currency values might influence price. Explain that by the end of the lesson they will be able to predict and calculate the effects of exchange‑rate changes on both importers and exporters.
Lesson Structure:
  1. Do‑now (5'): Students convert €5,000 to pounds using the given rate (£1 = €1.15) and note the result.
  2. Mini‑lecture (10'): Define exchange rate, appreciation, depreciation, spot and forward rates; illustrate impacts on import costs and export prices.
  3. Guided practice (15'): In pairs, work through the ABC Ltd. cost table, calculate costs at each rate, and discuss profit implications.
  4. Risk‑management strategies (10'): Present forward contracts, currency options, natural hedging, and diversification; students match each tool to a scenario.
  5. Class discussion & check for understanding (5'): Quick quiz using clickers or show of hands on key concepts.
  6. Exit ticket (5'): Write one sentence describing how a depreciation would affect a UK exporter and an importer.
Conclusion:

Recap the main ways exchange‑rate movements influence costs, prices, and competitiveness, and remind students of the risk‑management tools discussed. Collect exit tickets to gauge understanding, and assign homework: each student finds a recent real‑world example of a business affected by exchange‑rate changes and writes a brief analysis.