INTERNATIONAL TRADE

Introduction, Types and Advantages
Disadvantages of International Trade
Computing Terms of Trade
Factors Affecting Terms of Trade

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.
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:
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.
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.

World map, newspapers with trade reports, charts showing Kenya's trading partners, business magazines
Newspaper cuttings on industry closures, case study materials, charts showing trade impacts
Calculators, statistical data sheets, worked examples, formula charts
Case study materials, charts comparing different economies, business magazines

KLB Secondary Business Studies Form 4, Pages 162-164
KLB Secondary Business Studies Form 4, Pages 164

INTERNATIONAL TRADE

Balance of Trade and Balance of Payments Concepts
Preparing Balance of Payments Accounts
Balance of Payments Disequilibrium

By the end of the lesson, the learner should be able to:
Define balance of trade and balance of payments. Distinguish between visible and invisible trade. Identify components of balance of payments account. Explain current and capital account transactions.

In groups, learners are guided to:
Exposition of trade balance concepts; Group work identifying transaction types; Practical examples using Kenya's trade data; Discussion on visible vs invisible goods classification.

Trade statistics, charts showing balance structure, newspapers with economic data
Account worksheets, calculators, worked examples, practice data sets
Policy documents, case study materials, charts showing correction methods

KLB Secondary Business Studies Form 4, Pages 167-169

INTERNATIONAL TRADE

Terms of Sale in International Trade
Credit and Import Documents

By the end of the lesson, the learner should be able to:
Define terms of sale concept. Explain basic terms: LOCO, F.O.R., F.A.S., F.O.B. Describe advanced terms: C&F, C.I.F., Landed, Franco. Apply terms to calculate cost implications.

In groups, learners are guided to:
Exposition of various terms with shipping examples; Group work on cost allocation scenarios; Practical calculations on different terms; Case study analysis of term selection.

Shipping documents, cost calculation worksheets, practical scenarios, charts
Sample letters of credit, import licence forms, indent examples, banking documents

KLB Secondary Business Studies Form 4, Pages 175-176

INTERNATIONAL TRADE

Shipping, Insurance and Commercial Documents
Specialized Trade Documents
IMF and World Bank

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.
Describe proforma invoice purposes. Explain freight note and weight note functions. Analyze letter of hypothecation uses. Discuss shipping advice note and document flow in trade.

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.
Exposition of specialized documents; Group work on document sequencing; Practical scenarios on document usage; Analysis of complete trade documentation cycle.

Bill of lading samples, insurance certificates, invoice examples, document comparison charts
Document samples, flow charts, practical scenarios, case studies
Charts showing institutional structures, case study materials, project reports

KLB Secondary Business Studies Form 4, Pages 177-178
KLB Secondary Business Studies Form 4, Pages 178-179

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
Importance and Effects 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
Integration success stories, policy analysis documents, charts showing trade effects

KLB Secondary Business Studies Form 4, Pages 182-184

INTERNATIONAL TRADE

Reasons and Methods of Trade Restrictions
Advantages and Disadvantages of Trade Restrictions
Trade Liberalization and Export Processing Zones

By the end of the lesson, the learner should be able to:
Explain reasons for trade restrictions including infant industry and strategic industry protection. Describe methods: tariffs, quotas, administrative bottlenecks, foreign exchange control. Analyze dumping prevention and employment protection.
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:
Exposition of protection rationale with examples; Detailed explanation of restriction methods; Practical examples of tariff and quota calculations; Case studies on protection policies.
Balanced analysis of restriction effects; Case studies on protection outcomes and retaliation; Discussion on consumer welfare impacts; Group evaluation of policy trade-offs.

Case study materials, tariff schedules, quota examples, policy documents, calculators
Policy analysis documents, consumer impact studies, case study materials
EPZ documentation, liberalization case studies, charts showing trade policy evolution

KLB Secondary Business Studies Form 4, Pages 185-187
KLB Secondary Business Studies Form 4, Pages 187-188

INTERNATIONAL TRADE

E-commerce and Digital Trade
Forms and Importance of Economic Integration

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

KLB Secondary Business Studies Form 4, Pages 189

INTERNATIONAL TRADE

Advantages and Disadvantages of Free 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:
Enumerate advantages of free trade including market expansion and specialization. Identify disadvantages such as revenue loss and unemployment risks. Analyze trade creation vs trade diversion effects. Evaluate impact on local industries and consumer choice.

In groups, learners are guided to:
Guided discussion on free trade benefits; Case studies on integration success stories; Group analysis of trade diversion problems; Q/A on consumer welfare impacts and government revenue effects.

Case study materials on successful integration, charts showing trade effects, policy analysis documents
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 184-185