International trade revision

International trade revision

The “Prezi” that we used for the international trade section of the syllabus is included below.  It only covers the standard level content, and not the additional higher level material such as comparative advantage and trade diversion and creation.

Terms of trade

Terms of trade

One of the topics that comes up regularly, especially in essays, is terms of trade.  Although many people find this a confusing topic it is one that if you can master is great for evaluation.  The most important thing to remember is that the terms of trade are all about changes in the prices of …

Chinese balance of payments surplus with US

Chinese balance of payments surplus with US

The Chinese have a fixed currency that the US feels is undervalued and is therefore resulting in the US running a large balance of payments deficit against China.  The chinese have a fixed currency and so it would require an revaluation rather than appreciation to increase its value. BBC article – China hits back at …