Specific learning outcomes

1. a) Examine the concept of international trade in an economy.
2. b) Explore the limitations of international trade to a country.
3. c) Analyse the terms of sale and payments used in international trade.
4. d) Explore digital applications in international trade.
5. e) Map the local products that can be developed for export.
6. f) Appreciate the importance of international trade in an economy.

18-lesson overview (short aims)

1. Lesson 1: What is international trade? — basic terms and examples from Kenya.
2. Lesson 2: Why countries trade — comparative advantage and specialization (simple example).
3. Lesson 3: Types of trade — goods, services, visible & invisible trade.
4. Lesson 4: Kenya’s main exports and imports — data exploration (class activity).
5. Lesson 5: How trade is measured — balance of trade and balance of payments (simple exercises).
6. Lesson 6: Trade policy — tariffs, quotas, subsidies (effects on prices and producers).
7. Lesson 7: Non-tariff barriers and standards — quality, phytosanitary & certification.
8. Lesson 8: Limitations of international trade for Kenya — economic, social and political factors.
9. Lesson 9: Trade agreements — bilateral, regional (EAC), and multilateral basics.
10. Lesson 10: Terms of sale (Incoterms basics) — EXW, FOB, CIF explained simply.
11. Lesson 11: Payment methods — CASH IN ADVANCE, LETTER OF CREDIT, OPEN ACCOUNT, DOCUMENTARY COLLECTION.
12. Lesson 12: Role of banks and documents — shipping documents, bills of lading, invoices, certificates of origin.
13. Lesson 13: Digital tools — e-commerce platforms, mobile money (M-Pesa), online marketplaces.
14. Lesson 14: Customs & electronic systems — national portals, electronic declarations (simple guide).
15. Lesson 15: Mapping local products for export — group research & market match.
16. Lesson 16: Adding value — processing, packaging and branding for export markets.
17. Lesson 17: Benefits and risks of trade to Kenya — jobs, foreign exchange, competition.
18. Lesson 18: Revision, presentations and assessment — group export plans and reflection.

1. The concept of international trade (simple explanation)

International trade happens when people, firms or governments buy and sell goods or services across countries. Countries trade because some are better at making certain products (Kenya — tea, flowers, fresh fruits) while others produce different goods more cheaply. Trade allows access to products not available locally, helps firms grow and can increase national income.

Short classroom activity

Pair activity: each pair lists 5 Kenyan exports and 5 imports. Discuss who benefits and who might lose from each trade item.

2. Limitations of international trade

• Infrastructure problems — poor roads or slow port services increase costs.
• High transport and insurance costs — long distances increase prices.
• Trade barriers — tariffs, quotas, complex regulations from other countries.
• Non-tariff barriers — strict standards, tests and paperwork (e.g., sanitary rules).
• Exchange rate risk — changes in currency value affect prices and profits.
• Limited technology and skills — reduce ability to meet foreign market standards.
• Dependence on few commodities — price shocks harm the economy (e.g., tea price falls).
• Political risks — changes in policy or diplomatic relations can block trade.

Class discussion prompt

How could Kenya reduce these limits? (Ideas: improve roads, add value to products, train workers, diversify exports.)

3. Terms of sale & payment methods (simple guide)

When Kenyan exporters sell abroad they agree on who pays for transport, insurance and who bears the risk. Common terms (simple):

• EXW (Ex Works) — seller makes goods available; buyer pays transport and export tasks.
• FOB (Free On Board) — seller loads goods on ship; buyer pays sea freight and insurance.
• CIF (Cost, Insurance, Freight) — seller pays cost, insurance and freight to destination port.

Common payment methods — risk and speed vary:

Banks, insurance companies and trade institutions (like export promotion agencies) help reduce risks and provide finance and guarantees.

4. Digital applications in international trade

• Online marketplaces and B2B platforms — e.g., buyers can find Kenyan suppliers through global platforms.
• Mobile money (M-Pesa) and digital payments — speed up small payments and cross-border remittances where allowed.
• Electronic customs declarations and Single Window systems — speed up clearance and reduce paperwork.
• Digital certificates and tracking — electronic phytosanitary or quality certificates help meet buyer rules.
• Fintech trade finance — online lenders and digital letters of credit are emerging to help small exporters.

Class practical: research one Kenyan e-marketplace or platform that helps farmers or small businesses sell abroad. Present findings in 5 slides.

5. Mapping local products for export (Kenyan examples)

Potential Kenyan exports that can be developed and the ways to add value:

• Tea & coffee — quality control, specialty branding, packaging for niche markets.
• Horticulture (cut flowers, vegetables, fruits, avocados) — cold chain, processing and certification.
• Macadamia and nuts — cracking, grading and value-added snack packaging.
• Fish and meat — cold storage, sanitary standards and traceability systems.
• Textiles & garments — design, branding, compliance with labour and safety standards.
• Handicrafts & leather goods — design for international tastes and export packaging.
• Honey, spices, essential oils — organic or fair-trade certification to reach premium markets.

6. Importance of international trade to the economy

• Earns foreign exchange which is used to pay for imports.
• Creates jobs in farming, manufacturing, transport, and services.
• Encourages technology transfer and innovation.
• Provides consumers with a wider range of goods and services.
• Drives business growth and can reduce poverty when managed well.

Class reflection: Ask learners to write 4 short sentences on how international trade affects their family or local community.

Suggested learning experiences (classroom & field)

• Group research: collect real examples of Kenyan export products and present export plans (market, price, packaging).
• Role play: exporter, importer, bank and customs officer negotiating terms of sale and payment.
• Field visit (if possible): local export company, cold storage, or port operations — or invite a guest speaker from an export business.
• Digital task: use the internet to find online marketplaces that list Kenyan products; evaluate one for trust and suitability.
• Project: design a simple labelled packaging and price list for a Kenyan product for export markets.
• Map exercise: draw a county map and mark where specific export crops come from; present one suggestion to increase value.

Assessment & learning checks

• Short quiz: define terms (export, import, FOB, CIF, L/C).
• Class presentation: group export plan assessed on feasibility and understanding of terms & payments.
• Practical worksheet: match documents to their function (invoice, bill of lading, certificate of origin).
• Reflection paragraph: describe one benefit and one limitation of international trade for Kenya.

Teacher notes & tips

• Use local examples and current news (price changes, export successes) to make lessons relevant.
• When discussing digital systems, use simple demonstrations (show how M-Pesa works or an e-marketplace listing).
• Adapt the level of detail on Incoterms and payment methods to students’ understanding — focus on risk and responsibility.
• Encourage group work to build communication and research skills important for international trade careers.