4.3.2 - Trade and the global economy

Benefits and costs of specialisation and trade in the international comparative context. advantage.

Use a - benefits and costs of specialisation and trade in the international comparative to connect the rule to the data and decision in the question.

This matters because a - benefits and costs of specialisation and trade in the international comparative determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - benefits and costs of specialisation and trade in the international comparative to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Benefits and costs of specialisation and trade in the international comparative is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The theory of comparative advantage:; the distinction between absolute and comparative advantage; assumptions underlying the theory of comparative advantage; limitations of the theory of comparative advantage.

Use b - theory of comparative advantage: • the distinction between absolute and comparative to connect the rule to the data and decision in the question.

This matters because b - theory of comparative advantage: • the distinction between absolute and comparative determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - theory of comparative advantage: • the distinction between absolute and comparative to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - theory of comparative advantage: • the distinction between absolute and comparative is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Factors influencing patterns of trade between countries and causes volume of world of changes in these patterns: trade; impact of emerging economies; changes in comparative advantage; growth in trading blocs and bilateral trading agreements; changes in relative exchange rates; changes in protectionism between countries.

Use a - factors influencing patterns of trade between countries and causes volume of world of to connect the rule to the data and decision in the question.

This matters because a - factors influencing patterns of trade between countries and causes volume of world of determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - factors influencing patterns of trade between countries and causes volume of world of to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Factors influencing patterns of trade between countries and causes volume of world of is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Changes in trade flows between countries, and the reasons for these changes.

Use b - changes in trade flows between countries, and the reasons for these changes to connect the rule to the data and decision in the question.

This matters because b - changes in trade flows between countries, and the reasons for these changes determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - changes in trade flows between countries, and the reasons for these changes to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Changes in trade flows between countries, and the reasons for these changes is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Understanding and calculation of the terms of trade.

Use a - understanding and calculation of the terms of trade to connect the rule to the data and decision in the question.

This matters because a - understanding and calculation of the terms of trade determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - understanding and calculation of the terms of trade to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Understanding and calculation of the terms of trade is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Factors influencing a country's terms of trade, changes in:; relative inflation rates; relative productivity rates; relative labour costs; the exchange rate; the prices of imports and exports.

Use b - factors influencing a country's terms of trade, changes in: • relative inflation rates to connect the rule to the data and decision in the question.

This matters because b - factors influencing a country's terms of trade, changes in: • relative inflation rates determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - factors influencing a country's terms of trade, changes in: • relative inflation rates to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Factors influencing a country's terms of trade, changes in: • relative inflation rates is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The impact of changes in a country's terms of trade on:; export revenues; living standards; balance of trade.

Use c - impact of changes in a country's terms of trade on: • export revenues • living to connect the rule to the data and decision in the question.

This matters because c - impact of changes in a country's terms of trade on: • export revenues • living determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - impact of changes in a country's terms of trade on: • export revenues • living to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - impact of changes in a country's terms of trade on: • export revenues • living is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The role of the World Trade Organization (WTO) in trade liberalisation and liberalisation. trading blocs.

Use a - role of the world trade organization (wto) in trade liberalisation and liberalisation. to connect the rule to the data and decision in the question.

This matters because a - role of the world trade organization (wto) in trade liberalisation and liberalisation. determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - role of the world trade organization (wto) in trade liberalisation and liberalisation. to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - role of the World Trade Organization (WTO) in trade liberalisation and liberalisation. is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Types of trading blocs:; free-trade areas; customs unions; common markets; economic and monetary unions.

Use b - types of trading blocs: • free-trade areas • customs unions • common markets • economic to connect the rule to the data and decision in the question.

This matters because b - types of trading blocs: • free-trade areas • customs unions • common markets • economic determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - types of trading blocs: • free-trade areas • customs unions • common markets • economic to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Types of trading blocs: • free-trade areas • customs unions • common markets • economic is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Costs and benefits of membership of a trading bloc:; trade creation; trade diversion; costs and prices; economies of scale; transaction costs; movement of factors of production.

Use c - costs and benefits of membership of a trading bloc: • trade creation • trade diversion to connect the rule to the data and decision in the question.

This matters because c - costs and benefits of membership of a trading bloc: • trade creation • trade diversion determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - costs and benefits of membership of a trading bloc: • trade creation • trade diversion to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Costs and benefits of membership of a trading bloc: • trade creation • trade diversion is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Possible conflicts between trading blocs and the WTO.

Use d - possible conflicts between trading blocs and the wto to connect the rule to the data and decision in the question.

This matters because d - possible conflicts between trading blocs and the wto determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - possible conflicts between trading blocs and the wto to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Possible conflicts between trading blocs and the WTO is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Reasons for restrictions on free trade: free trade; to protect infant and geriatric industries; to protect domestic industries and employment; to protect national security; to prevent dumping; to correct a deficit on the current account of the balance of payments; to raise revenue.

Use a - reasons for restrictions on free trade: free trade • to protect infant and geriatric to connect the rule to the data and decision in the question.

This matters because a - reasons for restrictions on free trade: free trade • to protect infant and geriatric determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - reasons for restrictions on free trade: free trade • to protect infant and geriatric to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Reasons for restrictions on free trade: free trade • to protect infant and geriatric is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Types of restrictions on free trade:; tariffs; quotas; non-tariff barriers; subsidies to domestic producers.

Use b - types of restrictions on free trade: • tariffs • quotas • non-tariff barriers • to connect the rule to the data and decision in the question.

This matters because b - types of restrictions on free trade: • tariffs • quotas • non-tariff barriers • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - types of restrictions on free trade: • tariffs • quotas • non-tariff barriers • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Types of restrictions on free trade: • tariffs • quotas • non-tariff barriers • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Impact of protectionist policies on:; consumers; producers; governments; living standards; equality.

Use c - impact of protectionist policies on: • consumers • producers • governments • living to connect the rule to the data and decision in the question.

This matters because c - impact of protectionist policies on: • consumers • producers • governments • living determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - impact of protectionist policies on: • consumers • producers • governments • living to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Impact of protectionist policies on: • consumers • producers • governments • living is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.