INTERNATIONAL TRADE

Introduction, Types and Advantages

By the end of the lesson, the learner should be able to:
Define international trade. Distinguish between bilateral and multilateral trade. State advantages of international trade. Explain how trade promotes specialization and employment.

In groups, learners are guided to:
Q/A session on local trading experiences; Brainstorming on goods Kenya exports/imports; Group discussion on trade advantages with real examples; Analysis of technology transfer cases.

World map, newspapers with trade reports, charts showing Kenya's trading partners, business magazines

KLB Secondary Business Studies Form 4, Pages 162-164

INTERNATIONAL TRADE

Disadvantages of International Trade
Computing Terms of Trade

By the end of the lesson, the learner should be able to:
Identify disadvantages of international trade. Explain how trade can lead to local industry collapse. Analyze imported inflation concept. Discuss cultural and sovereignty impacts.

In groups, learners are guided to:
Guided discussion on negative trade effects; Case study analysis of textile industry challenges; Q/A on dependency problems; Group work on cultural changes due to globalization.

Newspaper cuttings on industry closures, case study materials, charts showing trade impacts
Calculators, statistical data sheets, worked examples, formula charts

KLB Secondary Business Studies Form 4, Pages 164

INTERNATIONAL TRADE

Factors Affecting Terms of Trade
Balance of Trade and Balance of Payments Concepts
Preparing Balance of Payments Accounts

By the end of the lesson, the learner should be able to:
Explain factors causing differences in terms of trade between countries. Analyze impact of commodity nature on trade terms. Discuss demand changes and trade restrictions effects. Evaluate world economic order influences.

In groups, learners are guided to:
Detailed exposition with country examples; Case study analysis of Kenya vs developed countries; Group discussions on commodity price variations; Q/A on trade restriction impacts.

Case study materials, charts comparing different economies, business magazines
Trade statistics, charts showing balance structure, newspapers with economic data
Account worksheets, calculators, worked examples, practice data sets

KLB Secondary Business Studies Form 4, Pages 167-168

INTERNATIONAL TRADE

Balance of Payments Disequilibrium
Terms of Sale in International Trade

By the end of the lesson, the learner should be able to:
Define balance of payments disequilibrium. Identify causes of disequilibrium. Explain methods to decrease import volumes. Analyze export promotion strategies.

In groups, learners are guided to:
Exposition of disequilibrium causes; Case studies on policy interventions; Discussion on import reduction methods; Analysis of export compensation and diversification strategies.

Policy documents, case study materials, charts showing correction methods
Shipping documents, cost calculation worksheets, practical scenarios, charts

KLB Secondary Business Studies Form 4, Pages 171-174

INTERNATIONAL TRADE

Credit and Import Documents

By the end of the lesson, the learner should be able to:
Explain letter of credit functions and types. Describe import licence requirements. Analyze indent procedures (open and closed). Discuss creditworthiness and banking relationships.

In groups, learners are guided to:
Examination of actual letters of credit; Discussion on import licensing procedures; Group work on indent preparation; Analysis of banking documentation requirements.

Sample letters of credit, import licence forms, indent examples, banking documents

KLB Secondary Business Studies Form 4, Pages 176-177

INTERNATIONAL TRADE

Shipping, Insurance and Commercial Documents
Specialized Trade Documents

By the end of the lesson, the learner should be able to:
Explain bill of lading purposes and features. Describe insurance policy types and certificate of origin. Analyze commercial and consular invoices. Compare airway bill with other transport documents.

In groups, learners are guided to:
Examination of actual shipping documents; Discussion on insurance requirements; Group analysis of invoice types; Comparison of transport document features.

Bill of lading samples, insurance certificates, invoice examples, document comparison charts
Document samples, flow charts, practical scenarios, case studies

KLB Secondary Business Studies Form 4, Pages 177-178

INTERNATIONAL TRADE

IMF and World Bank

By the end of the lesson, the learner should be able to:
State objectives and functions of IMF. Explain stable exchange rate maintenance and international liquidity provision. Describe World Bank objectives and development financing role. Compare IMF and World Bank functions.

In groups, learners are guided to:
Exposition of institutional backgrounds; Discussion on exchange rate stabilization; Case studies on institutional interventions; Comparison of lending terms and objectives.

Charts showing institutional structures, case study materials, project reports

KLB Secondary Business Studies Form 4, Pages 180-182

INTERNATIONAL TRADE

African Development Institutions

By the end of the lesson, the learner should be able to:
Explain ADB establishment and functions. Describe ADF objectives and lending terms. Analyze impact on African development. Compare regional vs global financial institutions.

In groups, learners are guided to:
Exposition of regional development banking; Case studies on funded African projects; Discussion on concessional lending terms; Analysis of development impact assessment.

ADB/ADF project reports, development case studies, institutional comparison charts

KLB Secondary Business Studies Form 4, Pages 181

INTERNATIONAL TRADE

Forms and Characteristics of Economic Integration

By the end of the lesson, the learner should be able to:
Define economic integration. Identify and explain four forms: free trade area, customs union, common market, economic union. Compare characteristics and features of each form. Analyze progression from simple to complex integration.

In groups, learners are guided to:
Exposition of integration concept and forms; Group discussions on regional cooperation examples; Comparison of integration levels using charts; Analysis of East African integration progress.

Maps showing integration blocs, comparison charts, case study materials on regional blocs

KLB Secondary Business Studies Form 4, Pages 182-184

INTERNATIONAL TRADE

Importance and Effects of Economic Integration
Reasons and Methods of Trade Restrictions

By the end of the lesson, the learner should be able to:
Explain importance of economic integration including market expansion and specialization. Analyze advantages of free trade. Identify disadvantages including revenue loss and unemployment risks. Evaluate overall impact on member countries.

In groups, learners are guided to:
Group discussions on integration benefits; Case studies on successful integration examples; Analysis of trade creation vs trade diversion; Balanced assessment of costs and benefits.

Integration success stories, policy analysis documents, charts showing trade effects
Case study materials, tariff schedules, quota examples, policy documents, calculators

KLB Secondary Business Studies Form 4, Pages 184-185

INTERNATIONAL TRADE

Advantages and Disadvantages of Trade Restrictions

By the end of the lesson, the learner should be able to:
State advantages of trade restrictions for domestic industries. Identify disadvantages including retaliation risks and consumer impacts. Analyze quality and price implications. Evaluate long-term effects on economic efficiency.

In groups, learners are guided to:
Balanced analysis of restriction effects; Case studies on protection outcomes and retaliation; Discussion on consumer welfare impacts; Group evaluation of policy trade-offs.

Policy analysis documents, consumer impact studies, case study materials

KLB Secondary Business Studies Form 4, Pages 187-188

INTERNATIONAL TRADE

Trade Liberalization and Export Processing Zones

By the end of the lesson, the learner should be able to:
Explain trade liberalization concept and effects. Describe EPZ characteristics, advantages and disadvantages. Analyze impact on domestic industries. Evaluate EPZ contribution to economic development.

In groups, learners are guided to:
Exposition of liberalization trends; Case study on Athi River EPZ; Discussion on liberalization impacts on local industries; Analysis of EPZ success factors and challenges.

EPZ documentation, liberalization case studies, charts showing trade policy evolution

KLB Secondary Business Studies Form 4, Pages 188-189

INTERNATIONAL TRADE

E-commerce and Digital Trade
Forms and Importance of Economic Integration
Advantages and Disadvantages of Free Trade

By the end of the lesson, the learner should be able to:
Explain e-commerce applications in international trade. Describe online payment systems and digital transactions. Analyze advantages and challenges of digital trade. Discuss future trends in electronic commerce.

In groups, learners are guided to:
Demonstration of e-commerce platforms; Discussion on digital payment security; Group work on online trade benefits and risks; Analysis of technology impact on trade.

Computer/tablets for demonstration, e-commerce examples, online payment illustrations
Maps showing integration blocs, charts comparing integration forms, newspaper articles on regional cooperation
Case study materials on successful integration, charts showing trade effects, policy analysis documents

KLB Secondary Business Studies Form 4, Pages 189

INTERNATIONAL TRADE

Reasons for Trade Restrictions
Methods of Trade Restrictions
Advantages and Disadvantages of Trade Restrictions
Trends in International Trade

By the end of the lesson, the learner should be able to:
Cite reasons for trade restrictions including infant industry protection. Explain strategic industry protection necessity. Discuss employment creation and protection through restrictions. Analyze dumping prevention and balance of trade preservation.

In groups, learners are guided to:
Exposition of protection rationale with practical examples; Case studies on infant industry protection success; Discussion on strategic industries in Kenya; Group work on employment protection policies.

Case study materials on protected industries, charts showing protection policies, newspaper articles on trade policies
Tariff schedules, quota examples, calculators, policy documents showing restriction methods
Policy analysis documents, case studies on protection outcomes, consumer impact studies
EPZ documentation, computers/tablets for e-commerce demonstration, charts showing trade liberalization effects

KLB Secondary Business Studies Form 4, Pages 185-187