Global Trade: Exchange Rates, Comparative Advantage and Tariffs

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Social Studies · Economics
SP-ECON-008 · Free to print and use in your classroom · substituteplans.com
Page 2
Global Trade: Exchange Rates, Comparative
Advantage and Tariffs
Social Studies · Economics · Grades 10-12 · 50 minutes
Time needed
50 minutes (one class period)
Prep
Copy the 2-page worksheet (one per student). Calculators are optional.
Technology
None. Calculators are optional.
Student
independence
High. Students work alone, then compare with a partner.
Copies to make
One 2-page worksheet per student
Materials
Pencils, Worksheet, Calculators (optional)
Goal for today: Students will convert currency, calculate opportunity costs to identify comparative advantage, and
explain arguments for and against a tariff.
Before the bell
☐ Copy the worksheet, one per student (2 pages).
☐ On the board, write: Import = a good bought from another country. Export = a good sold to another country.
Tariff = a tax on imports.
☐ Keep the answer key on your desk. All countries and currencies are made up.
Say this to start
Good morning! Countries trade goods with each other every day. Today you will practice some of the math behind that
trade, using made-up countries and money. You will also read about a tariff and consider arguments on both sides.
Everything you need is on the worksheet. Calculators are fine.
Run of show
Minutes
What you do
What students do
0–5
Take attendance. Hand out the worksheet. Read the three
board definitions aloud.
Settle in and listen.
5–13
Tell students to read the passage silently and underline the
key terms.
Read the passage.
13–23
Tell students to complete questions 1–3 (exchange rates
and tariffs).
Do the conversion and tariff math.
23–38
Tell students to complete the opportunity cost table, then
answer questions 4–7. Walk the room and ask students to
explain their opportunity cost in words.
Fill in the table and answer questions 4–7.
38–46
Tell students to answer questions 8–10. Partners may
discuss question 10 quietly, then write individually.
Finish true/false and the short answer.
46–50
Read answers 1–9 aloud from the key. Collect worksheets
and stack them for the teacher.
Check answers and hand in the worksheet.

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Social Studies · Economics
SP-ECON-008 · Free to print and use in your classroom · substituteplans.com
Page 3
If things go wrong
• If students struggle with opportunity cost, tell them to ask: how much of the other good do we give up to
make one more unit of this good?
• If students ask what the right opinion on tariffs is, say the lesson asks for arguments from both sides and does
not ask them to take a side.
• If a student finishes early, use the early finisher list.
• If students ask about real countries or real currencies, say these examples are made up so the math stays
simple.
Early finishers
• Make up your own exchange rate and convert three prices.
• Explain in two sentences why a country with an advantage in producing everything might still gain from
trade.
Support and challenge
• Support: Let students do the currency math first and complete only the table for opportunity costs.
• Challenge: Ask students to find a trade price that benefits both countries and explain why it works.
Notes for the teacher (you fill this in)
Jot a few lines before you leave. A full Daily Sub Report is in the free Sub Survival Kit at SubstitutePlans.com.
How far the class got / what to pick up next:
Students who were especially helpful:
Anything the teacher should know: