Practise explaining how free trade can increase competition, lower prices and widen consumer choice in this IB Economics SL objective.
Explain two possible 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.