This video teaches the concepts of Balance of Trade and Balance of Payments. The balance of trade is calculated by subtracting imports from exports. The balance of payments includes payments related to exports and imports of goods; payments related to the international flow of services, gifts or transfers; and payments for physical and financial assets such as rental payments or interest payments.

Key Concepts

Balance of Payments, Exchange Rate, Comparative Advantage, Benefit, Balance of Trade, Foreign Exchange Market, Trade


Exchange Rates

Students describe and identify the country of origin for certain items they own and the approximate price of these items. They learn that to purchase an imported item, they have to pay the people from whom they bought the item in their country’s currency. Moreover, if they want travel to...

Grades 9-12

Open for Business!

This engaging lesson gives students the opportunity to identify risks and rewards of entrepreneurship and distinguish between entrepreneurs who start a business to produce a good or provide a service.

Grades K-2, 3-5

The Trading Game

In this lesson, students will learn about the gains from trade. Students will participate in a trading game that will demonstrate that trade can make everyone better off.

Grades 6-8, 9-12

The Family Vacation

Students will take a surprise trip around the world. As they travel, they will use clues to discover where they are going. They will then figure out how much money they have spent in U.S. dollars, using exchange rates.

Grades 6-8, 9-12


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