Lesson Objective: At the completion of this lesson, students will be able to describe and explain how interest rates affect the value of a dollar and how exchange rates affect purchasing value in the global market. Supplies Needed: Lesson Supplies Two different color sheets of paper cut in strips torepresent currency and a bag of candy Student Handout 1 Exchange Rates and Currencies (1 per student) (found in Task 2) Student Handout Answer Key 1 Exchange Rates and Currencies (found in Resource Library) Student Handout 2 Timbuktu Bidding Game - Tally Table (1 per student) (found in Task 4) Student Handout 3 The Timbuktu Bidding Game Analysis (1 per group) (found in Task 5) Student Handout 4 Currency and Exchange Rate Quiz (1 per student) (found in Task 6) Student Handout Answer Key 4 Currency and Exchange Rate Quiz (found in Resource Library) Teacher Resource 1 Big Mac Index Poster (When printing poster, uncheck “fit picture to frame” in the print dialogue box.  Also, print on legal sized paper or larger. Best printed on 11x17 landscape.) (found in Task 3) Video 1 Big Mac Index (1:13) (found in Task 1)   References: Econedlink: Council for Economic Education. (n.d.). Economic Glossary. IMF Center: A public center for economics education. (n.d.). Lessons #1 and 2 focus on the IMF and its role in the global economy. Retrieved from http://www.imf.org/external/np/exr/center/students/hs/think/lesson7.pdf MBA dictionary. (n.d.). Retrieved November 15, 2014, from MBAResearch and Curriculum Center Rinsema, Kate. Alltop: Holy kaw! (n.d.). The big mac index [infographic]. Retrieved from http://holykaw.alltop.com/the-big-mac-index-infographic Travelex: Worldwide money. (n.d.). The Economist: Big mac index. Retrieved from http://www.spring.org.uk/the1sttransportX-Rates. (n.d.). Rates Table. Retrieved from http://www.x-rates.com/table/?from=USD Copyright Permission:Copyright permission has been given for the educational use of the web-based and printed Big Mac Index Chart, contained within this lesson.

Student and Teacher Project files for Global Business Project from Cengage, Principles of Business

Students will explore vacation destinations around the world to develop an understanding of global trade, comparative advantage, exchange rates, and the value of the dollar in other countries. Each team will conduct thorough research of multiple vacation destinations and then select one that team members believe would be an unusual, educational, and highly economical destination for student groups. The team will then develop a website, digital poster, or other deliverable that creatively explains its recommended vacation destination, the exchange rate, two examples of comparative advantage that the destination country enjoys, and expenses incurred during the week-long vacation.  The attached project document (found in the Resource Library) includes step-by-step instructions, templates, briefings, resources, and rubrics to help in executing this project. A PowerPoint to help introduce the project is also available in the Resource Library.  Driving Question: What would be the most economical, unique, and educational travel destination for students? Timeframe: 2 weeks

Assess political and economic risks and cultural issues of the target country to establish the financial costs and viability. MSU Global has teamed with experts in the international finance field to create resources to help increase international skills in the business community. These materials address the need of the international trade practitioner for knowledge and information that is specific to trade finance by providing a means for educators and business practitioners to transfer knowledge, skills, and understanding of the global marketplace to a number of prospective learners. These resources were created around the framework developed by the NASBITE International Certified Global Business Professional Program.

A success global business professional may not actively participate in foreign exchange risk mitigation; however, understanding the risks and opportunities is essential to operating a profitable international business. To master the concepts in this Task, you must know and understand foreign exchange risk mitigation techniques and required documentation: hedging tools, currency option contracts, and transfer pricing.MSU Global has teamed with experts in the international finance field to create resources to help increase international skills in the business community. These materials address the need of the international trade practitioner for knowledge and information that is specific to trade finance by providing a means for educators and business practitioners to transfer knowledge, skills, and understanding of the global marketplace to a number of prospective learners. These resources were created around the framework developed by the NASBITE International Certified Global Business Professional Program.

This resource on international finance is focused on the global business professional who is a generalist who may be involved in the sale of goods and/or services internationally. A global business professional needs to be able to research and analyze the credit history and payment capacity of potential buyers/partners in order to assess the commercial risks of buyers and maintain credit management and control procedures and documentation.MSU Global has teamed with experts in the international finance field to create resources to help increase international skills in the business community. These materials address the need of the international trade practitioner for knowledge and information that is specific to trade finance by providing a means for educators and business practitioners to transfer knowledge, skills, and understanding of the global marketplace to a number of prospective learners. These resources were created around the framework developed by the NASBITE International Certified Global Business Professional Program.

This resource on international finance is focused on the global business professional who is a generalist who may be involved in the sale and/or purchase of goods and/or services internationally. It is essential that a global business professional understand and be able to use the methods of payment available for international business transactions, the documentation required to obtain or initiate payment, and the risks involved. This module consists of nine units and is the largest module in this International Finance resource.MSU Global has teamed with experts in the international finance field to create resources to help increase international skills in the business community. These materials address the need of the international trade practitioner for knowledge and information that is specific to trade finance by providing a means for educators and business practitioners to transfer knowledge, skills, and understanding of the global marketplace to a number of prospective learners. These resources were created around the framework developed by the NASBITE International Certified Global Business Professional Program.

Select appropriate methods, terms, and currency of payment to agents, sales representatives, distributors, suppliers, and international joint ventures.MSU Global has teamed with experts in the international finance field to create resources to help increase international skills in the business community. These materials address the need of the international trade practitioner for knowledge and information that is specific to trade finance by providing a means for educators and business practitioners to transfer knowledge, skills, and understanding of the global marketplace to a number of prospective learners. These resources were created around the framework developed by the NASBITE International Certified Global Business Professional Program.

Develop a financial plan to establish whether internal/external international trade financing is required. MSU Global has teamed with experts in the international finance field to create resources to help increase international skills in the business community. These materials address the need of the international trade practitioner for knowledge and information that is specific to trade finance by providing a means for educators and business practitioners to transfer knowledge, skills, and understanding of the global marketplace to a number of prospective learners. These resources were created around the framework developed by the NASBITE International Certified Global Business Professional Program.

This area of financing provides many options for an exporter and in some cases desirable financing options for an importer. It is important to remember that all options carry risk and the greater the risk the higher the cost. When evaluating risk, the associated costs must be a factor in the cost equation. The financing tools that have been presented in other sections merge at this point into potential financing options.MSU Global has teamed with experts in the international finance field to create resources to help increase international skills in the business community. These materials address the need of the international trade practitioner for knowledge and information that is specific to trade finance by providing a means for educators and business practitioners to transfer knowledge, skills, and understanding of the global marketplace to a number of prospective learners. These resources were created around the framework developed by the NASBITE International Certified Global Business Professional Program.

Identify and arrange medium- and long-term finance for an overseas buyer (internal/external) to allow the buyer extended terms while providing cash payment to a seller without recourse.MSU Global has teamed with experts in the international finance field to create resources to help increase international skills in the business community. These materials address the need of the international trade practitioner for knowledge and information that is specific to trade finance by providing a means for educators and business practitioners to transfer knowledge, skills, and understanding of the global marketplace to a number of prospective learners. These resources were created around the framework developed by the NASBITE International Certified Global Business Professional Program.

Project Description: This project introduces students to entrepreneurship as well as economic systems, developing nations, and transitional economies. Each team will conduct thorough research on the economies of three diverse nations and determine which of those countries is most hospitable and supportive of entrepreneurship and private business ownership. After identifying which of the three is most ideal for entrepreneurship, the team will create promotional pieces of its choice (e.g., television commercial, series of advertisements, podcast, etc.) to persuade would-be entrepreneurs to start their businesses in that particular country.The attached project document (found in the Resource Library) includes step-by-step instructions, templates, briefings, resources, and rubrics to help guide the project. Driving Question: Which countries are most supportive of entrepreneurship and personal business ownership? Timeframe: 2 weeks