International Trade

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