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ECONOMICS: May 3 Learning Target In order to understand international trade I will analyze the importance of foreign exchange rates. I will know I have.

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Presentation on theme: "ECONOMICS: May 3 Learning Target In order to understand international trade I will analyze the importance of foreign exchange rates. I will know I have."— Presentation transcript:

1 ECONOMICS: May 3 Learning Target In order to understand international trade I will analyze the importance of foreign exchange rates. I will know I have it when I can: (1) explain how a change in the international value of the USD impacts the cost of U.S. imports and exports; (2) interpret the changes in the value of the USD on a foreign exchange (FOREX) market graph; and (3) analyze how changes in the value of the USD impact the U.S. balance of trade. Ch. 17, Lesson 3: Foreign Exchange and Trade Deficits (HO) -exchange rates: fixed vs. flexible (see definitions) -S and D of currency in the FOREX market—impact on exchange rates (er) -appreciation and depreciation of the USD leads to trade deficits or trade surpluses Closure How might changing exchange rates impact travel plans?

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