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.

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

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.

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
Case study materials, charts comparing different economies, business magazines
Trade statistics, charts showing balance structure, newspapers with economic data

KLB Secondary Business Studies Form 4, Pages 164

INTERNATIONAL TRADE

Preparing Balance of Payments Accounts
Balance of Payments Disequilibrium
Terms of Sale in International Trade

By the end of the lesson, the learner should be able to:
Prepare balance of payments on current account. Calculate balance of payments on capital account. Determine overall balance of payments. Interpret account balances and official settlement account.

Step-by-step account preparation; Worked examples with comprehensive data; Supervised practice exercises; Group problem-solving on complex scenarios.

Account worksheets, calculators, worked examples, practice data sets
Policy documents, case study materials, charts showing correction methods
Shipping documents, cost calculation worksheets, practical scenarios, charts

KLB Secondary Business Studies Form 4, Pages 169-171

INTERNATIONAL TRADE

Credit and Import Documents
Shipping, Insurance and Commercial 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.

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
Bill of lading samples, insurance certificates, invoice examples, document comparison charts

KLB Secondary Business Studies Form 4, Pages 176-177

INTERNATIONAL TRADE

Specialized Trade Documents
IMF and World Bank

By the end of the lesson, the learner should be able to:
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.

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

Document samples, flow charts, practical scenarios, case studies
Charts showing institutional structures, case study materials, project reports

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.

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.

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

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.

Exposition of protection rationale with examples; Detailed explanation of restriction methods; Practical examples of tariff and quota calculations; Case studies on protection policies.

Case study materials, tariff schedules, quota examples, policy documents, calculators
Policy analysis documents, consumer impact studies, case study materials

KLB Secondary Business Studies Form 4, Pages 185-187

INTERNATIONAL TRADE

Trade Liberalization and Export Processing Zones
E-commerce and Digital Trade

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.

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
Computer/tablets for demonstration, e-commerce examples, online payment illustrations

KLB Secondary Business Studies Form 4, Pages 188-189

INTERNATIONAL TRADE

Forms and Importance of Economic Integration
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:
Define economic integration. Identify four forms of economic integration. Explain characteristics of free trade area, customs union, common market and economic union. Analyze importance of economic integration to member countries.

Q/A session reviewing relevant integration terms; Exposition of integration forms with regional examples; Group discussions on East African integration progress; Analysis of integration benefits using case studies.

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
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 182-185