• Trade can increase competition, lower prices, expand choice, and provide access to resources
• Trade can raise foreign exchange earnings, access larger markets, generate economies of scale, and improve resource allocation and production efficiency
• Diagram: free trade illustrating exports when world price is above domestic price
• Diagram: free trade illustrating imports when world price is below domestic price
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Attempts
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Mistakes
Start with the concept explanation, then practise to create mastery evidence.
2
Learning objective
4.1.2 (HL)—Absolute and comparative advantage
New
• Comparative advantage is based on lower opportunity cost
• Specialization and trade can create gains from trade
• Sources of comparative advantage explain why countries trade
• Diagram [HL]: linear PPCs showing different opportunity costs and gains from specialization and trade
• Calculation [HL]: opportunity costs from data to identify comparative advantage
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Mastery
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Start with the concept explanation, then practise to create mastery evidence.
3
Learning objective
4.1.3 (HL)—Limits of comparative advantage
New
• Comparative advantage theory has limitations in real-world trade analysis
• Evaluation should consider assumptions, distributional effects, and practical constraints
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Mastery
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Attempts
0
Mistakes
Start with the concept explanation, then practise to create mastery evidence.
4
Learning objective
4.1.4 (HL)—Trade quantity and value calculations
New
• Calculate quantity of exports and quantity of imports from a diagram
• Calculate import expenditure and export revenue from a diagram
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Mastery
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Attempts
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Mistakes
Start with the concept explanation, then practise to create mastery evidence.