AP Macroeconomic Series: Appreciation, Depreciation, and Trade

Why did Icelandair start offering nonstop flights to Minneapolis-St. Paul in 2000? Why would the Chinese government keep its currency values deflated (as it has been accused of)? Why do interest rates in the U.S. affect the price of coffee at a small shop in Malaysia? All of these can be explained by examining the link between currency values and imports/exports. Although students may experience currency appreciation/depreciation from the consumer perspective – if they are fortunate enough to travel internationally – the larger impact of currency on global trade is harder to discern. In this session, we’ll dig into how changes in currency prices (whether due to policy or other factors) impact businesses and national economies. We will utilize the A.P. Macroeconomics 4th Edition: Teacher Resource Manual to provide additional resources and share strategies on how to teach these concepts.