IB Economics 4.1.1 Benefits of international trade

Answers may include:
- Terminology: international trade.
- Explanation: of any two of the following benefits: increased competition; lower prices; greater choice; acquisition of resources; more foreign exchange earnings; access to larger markets; economies of scale; more efficient resource allocation; more efficient production.
- Diagram: free trade diagram illustrating imports when world price is below domestic price; or international trade diagram (tariff, quota, subsidy) to explain benefits of reducing trade protection.

A maximum of [6] should be awarded if only one benefit is addressed.

Assessment Criteria

Part (a) 10 marks

Marks

Level descriptor

0

- The work does not reach a standard described by the descriptors below.

1-2

- The response indicates little understanding of the specific demands of the question.

- Economic theory is stated but it is not relevant.

- Economic terms are stated but they are not relevant.

3-4

- The response indicates some understanding of the specific demands of the question.

- Relevant economic theory is described.

- Some relevant economic terms are included.

5-6

- The response indicates understanding of the specific demands of the question, but these demands are only partially addressed.

- Relevant economic theory is partly explained.

- Some relevant economic terms are used appropriately.

- Where appropriate, relevant diagram(s) are included.

7-8

- The specific demands of the question are understood and addressed.

- Relevant economic theory is explained.

- Relevant economic terms are used mostly appropriately.

- Where appropriate, relevant diagram(s) are included and explained.

9-10

- The specific demands of the question are understood and addressed.

- Relevant economic theory is fully explained.

- Relevant economic terms are used appropriately throughout the response.

- Where appropriate, relevant diagram(s) are included and fully explained.