Unit 4.1 Benefits of international trade

This page covers the benefits of international trade and the Higher Level topics of absolute and comparative advantage.  International trade means consumers and businesses can domestically access goods and services that cannot be produced For...

Unit 4.2 Types of trade protectionism

This page covers the different types of trade barriers. It includes an analysis of tariffs, quotas, trade subsidies and administrative barriers.  Definition Tariffs are taxes put on imported goods as they enter the domestic economy and have to...

Unit 4.3 Reasons why governments restrict free trade

When a country is trying to develop an industrial base, governments put trade barriers in place to protect a new industry against foreign competition.  This allows the domestic firm time to build the economies of scale needed to compete and...

Unit 4.4 Economic integration

Unit 4.5 Exchange rates

This page covers exchange rates. It includes the nature of foreign exchange markets, floating exchange rates, fixed exchange rates, monetary union and managed exchange rates.  An exchange rate is the price of one currency in terms of another...

Unit 4.6 Balance of payments

This page covers the nature of the balance of payments account, the different sections of the account (current, capital and financial), and the HL topic of current account balance of payments deficits.  The balance of payments (BOP) is an account...

Unit 4.7 Sustainable development

This page covers the nature of sustainable economic development by explaining economic development and sustainability. It also covers the HL topic of sustainable economic development and poverty.  Economic development can be defined as the sustained...

Unit 4.8 Measuring development

The gross domestic product is the money value of all final goods and services produced by a country in one year adjusted for inflation.  real GDP/population = real GDP per capita For international comparisons, the real GDP per capita figure is...

Unit 4.9 Barriers to economic development

This page covers the economic, geographical, social and political factors that are barriers to economic development.  The economic barriers to development are focused on the supplied side of the economy and the challenges ELDCs face in terms...

Unit 4.10: Economic growth and economic development strategies

This page covers the different strategies ELDCs can use to facilitate economic development. It includes import substitution, export promotion, market-based supply-side policies and interventionist supply-side policies. It also includes coverage...