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What is money? What decides the value of the different currencies? Why is there a marked for trading money of different currencies? What does speculation in exchange rates mean?
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hours
Introduction:
These are some of the things you will get to learn about in this course.<br /> Global economy, the global marked, international trade agreements and<br /> national policies are all part of influencing the value of our national currency,<br /> which means how much our money is worth when we want to buy and sell<br /> goods to other countries. To understand how global economy works you have<br /> to learn some of the basic elements/functions/tools that are used to manage<br /> national and global economies.<br /> Here comes a list of issues you can begin to discuss with your fellow students or<br /> your teacher to be familiar with the basic rules and terms within liberal<br /> (capitalist) economy which is in fact the only economical system in the world<br /> after the fall of the Soviet Union.<br /> 1. Free Trade – Countries buy and sell goods to each other without<br /> restrictions in the form of tax etc.<br /> 2. A Country’s Trade Balance – the balance in value between what a<br /> country exports and what it imports<br /> 3. A Trade Deficit – occurs when a country imports (consumes) more than it<br /> exports (produces)<br /> 4. A Country’s National Debt – there can be many reasons for a country to<br /> have debts. Debt can develop through a trade deficit, or the raising of<br /> loans to survive an economical crises, or it can stem from the raising of a<br /> loan taken in order to make an investment for the future and therefore is<br /> expected to improve the country’s economy in the long run<br /> 5. Who Decides the Prices of the Specific Goods? ‐ The prices are mainly<br /> decided by the “market mechanism” which means the relation between<br /> “supply” and “demand”. If the demand is higher than the supply, then<br /> the prices will go up. If the demand is lower than the supply, then the<br /> prices will go down. That is the reason why a country which has a variety<br /> of goods to sell is “stronger” than a country with only a few goods to sell.<br /> You could say though, that this does not apply for the oil producing<br /> countries because the market for oil is huge and is growing year by year<br /> 6. Inflation – When the price on many or all basic goods raise, then you say<br /> that there is inflation. There can be many different reasons for inflation<br /> in a country. For example the rise of oil prices or higher salaries for<br /> workers in the production sector<br /> 7. Devaluation – A country can decide to devaluate their currency. This<br /> means that the currency gets less value compared to other countries on<br /> the international market. Devaluation can help a country to increase<br /> their exports, because their goods become cheaper for other countries<br /> to buy and they will sell more; but then at the same time: all imported<br /> goods will become more expensive.
Directive:
<div style="margin-left: 40px;"><br /> 1.<br /> The teacher writes some of the basic definitions within global economy.<br /> Teacher and students together go through the different basic<br /> elements/functions/tools that are used to manage national and global<br /> economy.<br /> 30 min<br /> <br /> 2.<br /> The teacher gives a presentation about “Currency and their role in the global<br /> economy”<br /> 30 min<br /> <br /> 3.<br /> In groups of 2‐3 the students work to find information about the exchange rate<br /> of their own currency compared to the dollar and euro over the last 5 years<br /> 20 min<br /> <br /> 4.<br /> Final point for common discussion “Is the International Money Market Fair?<br /> Why? Why not?”</div>
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Portuguese
Search words:
Money Currency Trade Economy Economics
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