Practise IB Economics SL 4.4.3 by explaining how trading blocs can increase market access, efficiency, competition and welfare using marked exam evidence.
Using real-world examples, discuss the advantages and disadvantages of a country being a member of a trading bloc.
Answers may include:
- Terminology: trading bloc.
- Explanation: of the impacts of a trading bloc on the economy in terms of employment, economic growth, economies of scale.
- Diagram: AD/AS or PPC diagram to illustrate growth. Trade diagram illustrating the removal of restrictions to trade.
- Synthesis (discuss): Advantages including greater access to markets, economies of scale, freedom of movement of labour and greater employment opportunities, stability and cooperation, increased economic growth, greater consumer choice, increased competition, improved efficiency, lower prices. Disadvantages including impact on sovereignty, the effect on multilateral trade negotiations (such as those of the WTO), potential unemployment in less competitive member states.
- Example: real-world example of a country or countries that have become members of a trading bloc.
N.B. It should be noted that terminology, theory, diagrams and examples that have already been given in part (a), and then referred to in part (b), should be rewarded.
Examiners should be aware that candidates may take a different approach which, if appropriate, should be rewarded.
Assessment Criteria
Part (b) 15 marks
Marks
Level descriptor
0
- The work does not reach a standard described by the descriptors below.
1-3
- 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.
- The response contains no evidence of synthesis or evaluation.
- A real-world example(s) is identified but it is irrelevant.
4-6
- The response indicates some understanding of the specific demands of the question.
- Relevant economic theory is described.
- Some relevant economic terms are included.
- The response contains evidence of superficial synthesis or evaluation.
- A relevant real-world example(s) is identified.
7-9
- 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.
- The response contains evidence of appropriate synthesis or evaluation but lacks balance.
- A relevant real-world example(s) is identified and partly developed in the context of the question.
10-12
- 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.
- The response contains evidence of appropriate synthesis or evaluation that is mostly balanced.
- A relevant real-world example(s) is identified and developed in the context of the question.
13-15
- 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.
- The response contains evidence of effective and balanced synthesis or evaluation.
- A relevant real-world example(s) is identified and fully developed to support the argument.