International trade and globalisation

Topics

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Sample objectives

What this unit covers

• International specialisation: Understand the reasons for national specialisation, focusing on better resource allocation and more cost-effective production techniques.
• International specialisation: Identify the benefits and drawbacks of national specialisation for consumers, businesses, and the overall economy.
• Globalisation, free trade and protection: Understand the concept of globalisation.
• Globalisation, free trade and protection: Examine the function of multinational corporations (MNCs) and the advantages and disadvantages they bring to both their home and host nations.
• Foreign exchange rates: Understand the concept of foreign exchange rates, including the differences between floating and fixed exchange rate systems.
• Foreign exchange rates: Explain how foreign exchange rates are determined in the foreign exchange market, focusing on the demand and supply of currencies and how equilibrium rates are established.
• Current account of balance of payments: Understand the elements that make up the current account of the balance of payments, including trade in goods, trade in services, primary income, and secondary income. Be able to calculate deficits and surpluses for the current account and its individual components.
• Current account of balance of payments: Identify the reasons that lead to current account deficits and surpluses.