
Currency Value: What Makes Exchange Rates Change?
Students will learn about exchange rates – how much one country's money is worth compared to another's – and the basic factors that make these values go up or down.
About This Topic
Students will learn about exchange rates – how much one country's money is worth compared to another's – and the basic factors that make these values go up or down.
Key Questions
- Why does the value of the Singapore dollar change compared to the US dollar?
- How does demand for a country's goods affect its currency value?
- What happens when a country's currency becomes stronger or weaker?
Active Learning Ideas
See all activities→Activities & Teaching Strategies
See all activities
More in Global Trade and Integration
Why Countries Trade: Specialization and Benefits
Students will explore the basic reasons why countries trade with each other, understanding that countries can benefit by focusing on producing what they are best at.
8 methodologies
Protecting Local Industries: Trade Barriers
Students will discuss why some people want to protect local businesses from foreign competition using tools like taxes on imports (tariffs) and limits on foreign goods (quotas).
8 methodologies
Tools to Limit Trade: Tariffs and Quotas
Students will learn about specific ways governments can limit international trade, such as tariffs (taxes on imports) and quotas (limits on quantities), and their basic effects.
8 methodologies
Countries Working Together: Trade Agreements
Students will explore how countries form groups to make trade easier among themselves, like free trade areas, and discuss the benefits and challenges of such agreements.
8 methodologies
Country's Money In and Out: Balance of Payments
Students will get a basic understanding of how a country keeps track of all the money flowing in and out from trade, investments, and other transactions with the rest of the world.
8 methodologies
Stronger or Weaker Currency: Effects on Trade
Students will explore the basic effects of a country's currency becoming stronger or weaker on its exports, imports, and the prices of goods.
8 methodologies