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EnglandEconomics

2.10-2.13 International trade and the global economy

5 dot points across 5 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

How do we record a country's trade with the rest of the world?

The balance of payments and the current account, the meaning of a trade surplus and deficit, and the causes and consequences of a trade imbalance.
An OCR J205 answer on the balance of payments and current account: the trade balance, surpluses and deficits, and the causes and consequences of a trade imbalance.
9 min answer →

What is an exchange rate, and how do changes in it affect consumers and producers?

What an exchange rate is, how to convert between currencies, and how a rise or fall in the exchange rate affects exporters, importers and consumers.
An OCR J205 answer on exchange rates: what an exchange rate is, how to convert between currencies, and how an appreciation or depreciation affects exporters, importers and consumers (the SPICED and WPIDEC effects).
9 min answer →

What is globalisation, and who gains and loses from a more connected world economy?

What globalisation is and its causes, the role of multinational companies, and the costs and benefits of globalisation for producers, workers and consumers in developed and less developed countries.
An OCR J205 answer on globalisation: what it is and its causes, the role of multinational companies, and the costs and benefits for producers, workers and consumers in developed and less developed countries, including economic, social and environmental sustainability.
10 min answer →

Why do countries trade with one another, and what are the gains and risks?

Why countries trade, the meaning of imports and exports, the benefits of international trade, and the role of specialisation between countries.
An OCR J205 answer on international trade: why countries trade, imports and exports, the benefits of trade and specialisation between countries, and the risks of relying on trade.
9 min answer →

Why do governments restrict trade, and what are free trade agreements and trading blocs?

Free trade and free trade agreements (including the European Union and trading blocs), the methods of protection (tariffs, quotas and subsidies), and the arguments for and against protectionism.
An OCR J205 answer on free trade and protectionism: free trade agreements including the European Union and trading blocs, the methods of protection (tariffs, quotas and subsidies), and the arguments for and against protectionism.
10 min answer →