amazon.co.ukInternational Trade and Development
A-Level Economics revision: International Trade and Development. Learning objectives, key points, worked examples and practice questions across AQA, Edexcel, OCR, WJEC and CCEA.
📌 Key Points
Key Fact: Absolute: produce more with same resources; Comparative: lower opportunity cost -> specialise -> trade
Key Fact: Tariff: tax on imports -> domestic P↑, Qd↓, Qs↑, govt revenue, DWL; Quota: quantity limit; Subsidy: domestic producers
Key Fact: Floating: market; Fixed: central bank intervention; Managed: dirty float; PPP: identical goods same price in common currency
Key Fact: Globalisation: trade↑, capital flows↑, migration↑, tech diffusion; WTO: rules, disputes; Blocs: EU, USMCA, ASEAN
Key Fact: Development: import substitution (protect infant industries) vs export-led (E Asian tigers); Aid: tied/untied; Debt: HIPC initiative
Key Fact: HDI: life expectancy, education (mean/expected yrs), GNI pc; Gini: 0=perfect equality, 1=perfect inequality; Lorenz curve
🎯 Learning Objectives
- Explain absolute and comparative advantage; gains from trade
- Analyse protectionism: tariffs, quotas, subsidies, VERs; costs/benefits
- Understand exchange rate systems: fixed, floating, managed; PPP theory
- Analyse globalisation: drivers, benefits, costs; WTO, trade blocs
- Evaluate development strategies: import substitution vs export-led, aid, FDI, debt
- Use development indicators: HDI, MDGs/SDGs, inequality (Gini, Lorenz)
💡 Worked Example
Exam-Style Question
Question: Country A: 10 labour hours for 1 cloth or 5 wine. Country B: 6 cloth or 4 wine. Who has comparative advantage in what?
Model Answer:
A: OC 1 cloth = 2 wine (10/5), 1 wine = 0.5 cloth. B: OC 1 cloth = 0.67 wine (6/4), 1 wine = 1.5 cloth. B has CA in cloth (lower OC), A has CA in wine. A exports wine, B exports cloth. Both gain
❓ Practice Questions
Model answers are being added progressively - questions marked ✗ don't have one yet. Cross-check with your teacher or the official mark scheme.
Questions:
- Calculate opportunity costs for CA✗ answer coming soon
- Draw tariff diagram showing DWL✗ answer coming soon
- Explain J-curve effect✗ answer coming soon
- Evaluate export-led vs import substitution✗ answer coming soon
- Interpret Lorenz curve and Gini✗ answer coming soon
🎬 Video Resources
- International Trade and Development - Overview -- YouTube Search
- International Trade and Development - Exam Questions -- YouTube Search
📄 Past Papers & Exam Resources
🔗 Further Reading & Resources
- Physics & Maths Tutor - International Trade and Development -- Free notes, worksheets, and past paper questions by topic
- Dr Frost Maths - International Trade and Development -- Free resources, slides, and interactive questions
- BBC Bitesize - International Trade and Development -- BBC Bitesize revision resources