Economics :: Foreign Exchange and Currencies (Wk 14, Pt B)

VIDEO SUMMARY The money needed to carry on international trade is funneled through foreign exchange markets where one nation's currency is converted into another's. These markets also allow international business transactions. Once the value of one currency is established in relation to another, a foreign exchange rate has been established. Since World War II, trading nations have used two foreign exchange systems: first, the adjustable-peg system and later the floating, or flexible, system. Nations determine the strength of their international trade by measuring the balance of payments and the balance of trade. VIDEO OBJECTIVES - Explain why foreign exchange rates are necessary - Describe how a nation determines its balance of payments - Explain the significance of the balance of trade HIGH SCHOOL SOCIAL STUDIES CONTENT EXPECTATIONS (MI) - E.3.2: Economic Interdependence - Trade (3.2.2, 3.2.3, 3.2.4) WEEK 14 RESOURCES Instructional Video Notes for Economics :: Week 14 - http://goo.gl/99oDJ Quizlet flashcards for Economics :: Week 14 - http://quizlet.com/_7pyid Information and illustrations, where applicable, are used under 17 U.S.C. § 107 (fair use in teaching and for educational purposes) from Holt Economics (Holt Rinehart & Winston, 1997)