Lesson Plan

• Describe how export demand influences foreign exchange rates.
• Explain how import demand influences foreign exchange rates.
• Analyse the combined effect of simultaneous changes in export and import demand on currency value.
• Apply these concepts to real‑world situations such as tourism booms or commodity price shifts.

• Projector and screen
• Whiteboard and markers
• Printed handout with supply‑and‑demand diagram
• Worksheet containing the practice question
• Calculator (optional)

Start with a headline about a recent surge in oil exports and ask students what they think happens to the country's currency. Recall prior knowledge of basic supply‑and‑demand and the definition of an exchange rate. State that by the end of the lesson they will be able to explain and predict exchange‑rate movements caused by trade‑related demand changes.

1. Do‑Now (5'): Quick written response to “If a country’s exports suddenly increase, what happens to its currency?” – collect responses.
2. Mini‑lecture with diagram (10'): Use projector to show supply‑and‑demand curves, explain how export demand shifts the demand curve rightward and how import demand shifts the supply curve.
3. Guided analysis of trade‑demand table (10'): In pairs, students interpret each scenario and predict the FX movement, teacher circulates for misconceptions.
4. Real‑world case study (8'): Discuss the oil‑boom example from the notes, link to appreciation/depreciation outcomes.
5. Practice question (5'): Individually answer the tourism scenario, then share answers.
6. Check for Understanding (5'): Exit ticket – one sentence summarising the net effect when export growth exceeds import growth.

Summarise that export demand raises currency demand (appreciation) while import demand raises supply (depreciation), and the net movement depends on their relative sizes. Collect exit tickets as a retrieval check and assign homework: research a recent news article on trade changes and write a short paragraph predicting the exchange‑rate impact.