Lesson Plan

• Describe the components of the current account and how a deficit arises.
• Explain why governments seek to reduce a current‑account deficit.
• Identify and compare the main trade‑restriction tools used to lower imports or boost exports.
• Analyse the short‑term impact of tariffs, quotas, licensing and exchange controls on the trade balance.
• Evaluate the advantages and disadvantages of using trade restrictions to correct a deficit.

• Projector and screen for slides/diagrams
• Whiteboard and markers
• Handout summarising trade‑restriction types and effects
• Calculator worksheets for the tariff example
• Printed current‑account flow diagram
• Sticky notes for group activity

Begin with a quick poll: “What would happen if a country consistently imports more than it exports?” Connect this to prior learning on the balance of payments and set the success criteria – students will be able to explain why governments impose trade restrictions and evaluate their effectiveness.

1. Do‑now (5’) – Students write responses to the poll question on sticky notes and share ideas.
2. Mini‑lecture (10’) – Review current‑account components and deficit definition using a projected diagram.
3. Interactive discussion (8’) – Elicit reasons for reducing a deficit; record on board.
4. Trade‑restriction toolbox (12’) – Present tariffs, quotas, licensing, exchange controls, and export subsidies; students complete handout.
5. Calculation activity (10’) – Pairs use a worksheet to calculate the effect of a 10% tariff on imports and discuss results.
6. Advantages & disadvantages debate (10’) – Groups list pros and cons on sticky notes; class debate potential trade‑offs.
7. Exit ticket (5’) – Write one way a restriction can improve the current account and one possible downside.

Summarise that trade restrictions can narrow a current‑account deficit by lowering imports or raising exports, but they may cause higher consumer prices and possible retaliation. For the exit ticket, students note one benefit and one drawback, and homework is to research a real‑world case where a country used tariffs to address a deficit.