1. Beginning Activities Title today’s lesson: Financing and Trade Deficits Notes Activity: Define Foreign Exchange, Foreign Exchange Rate, Fixed Exchange Rates, and Flexible Exchange Rates Mission Statement: To prepare you for a life of responsible citizenship Daily Expectations: – No one leaves once class has begun. – Come in quietly and get to work immediately – Pay attention and be respectful – No phones – No food or drinks other than water – Do your work – Give AP quality effort 5 bonus points for supplies

2. Extra Credit 5 points each 6 weeks for bringing supplies: – Paper clips – Pens – Paper – Staples – Tape

3. Financing and Trade Deficits Chapter 17 International Trade

4. The International Value of the Dollar Trade deficit – whenever the values of the products it imports exceeds the value of the products it exports Trade surplus – whenever the value of its exports exceeds the value of its imports Trade-weighted value of the dollar – index showing the strength of the dollar against a small group of foreign currencies

5. The Effect of a Trade Deficit Trade imbalances reduce the value of a country’s currency. The reduction in value can effect employment. Employment can shift from export to import industries.

6. Ending Activity Research Activity: Exchange Rates Make sure the floor is clean Connect to our objectives: How does this prepare you for life and the future?