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 …

China becomes the world’s largest exporter

China becomes the world’s largest exporter

In the International economics section of the syllabus, it is important to distinguish between the volume and value of trade, and also the impact of changes in the balance of payments and the exchange rate and vice versa.  This article refers to China which operates a fixed exchange rate system. We need to think about …

Venezuela devalues the Bolivar

Venezuela devalues the Bolivar

This is a very good article about currency devaluation, where Venezuela operates a different system to most countries with 2 exchange rates (1 for essential goods, and 1 for luxuries).  It is very good issue for thinking about the link between exchange rates and inflation (International economics part of the syllabus), and also evaluating the …