Topics covered in Unit 4- International trade and the global economy
4.1 Importance of international trade
- explain why countries import and export goods and services and the benefits of this for consumers and producers
- explain free trade agreements including the European Union
4.2 Balance of payments
- explain the balance of payments on current account
- explain the meaning of a balanced current account, a current account surplus and current account deficit
- calculate deficits and surpluses
- analyse recent and historical data on exports and imports
- evaluate the importance of the balance of payments on current account to the UK economy
- evaluate the causes of surpluses and deficits of the balance of payments on current account
4.3 Exchange rates
- draw and analyse how exchange rates are determined through the interaction of supply and demand
- calculate currency conversion
- analyse recent and historical exchange rate data
- evaluate the effect of changes in the exchange rate on consumers and producers
4.4 Globalisation
- explain globalisation, including its driving factors
- explain how development is measured, including GDP per capita, life expectancy, access to health care, technology and education
- evaluate the costs and benefits of globalisation to producers, workers and consumers in developed countries, including the impact on economic, social and environmental sustainability
- evaluate the costs and benefits of globalisation to producers, workers and consumers in less developed countries, including the impact on economic, social and environmental sustainability