International Trade

    OCR
    GCSE

    Analyse the theoretical underpinnings of global exchange, focusing on the Law of Comparative Advantage and the gains from specialisation. Evaluate the tension between trade liberalisation and protectionist interventions, including tariffs, quotas, and non-tariff barriers. Assess the impact of economic integration through trading blocs (Free Trade Areas, Customs Unions) and the role of international organisations (WTO). Examine the mechanics of the Balance of Payments, exchange rate systems, and the implications of global interdependence on macroeconomic performance.

    0
    Objectives
    4
    Exam Tips
    4
    Pitfalls
    4
    Key Terms
    4
    Mark Points

    What You Need to Demonstrate

    Key skills and knowledge for this topic

    • Credit accurate calculation of exchange rate conversions showing clear working
    • Award marks for logical chains of reasoning linking exchange rate appreciation to current account deficits (SPICED)
    • Candidates must evaluate the impact of protectionism by contrasting short-term domestic protection with long-term efficiency losses
    • Responses must explicitly reference data provided in the case study to support arguments regarding MNCs

    Marking Points

    Key points examiners look for in your answers

    • Credit accurate calculation of exchange rate conversions showing clear working
    • Award marks for logical chains of reasoning linking exchange rate appreciation to current account deficits (SPICED)
    • Candidates must evaluate the impact of protectionism by contrasting short-term domestic protection with long-term efficiency losses
    • Responses must explicitly reference data provided in the case study to support arguments regarding MNCs

    Examiner Tips

    Expert advice for maximising your marks

    • 💡When evaluating protectionism, explicitly identify the stakeholder (consumer, producer, government) before analysing the impact
    • 💡For 6-mark 'Evaluate' questions, ensure a two-sided argument is presented followed by a supported judgement
    • 💡Always show full working for exchange rate calculations; method marks are available even if the final answer is incorrect
    • 💡Use the specific data in the text (e.g., 'Country X exports rose by 5%') rather than generic statements

    Common Mistakes

    Pitfalls to avoid in your exam answers

    • Confusing the government budget deficit with a current account deficit on the Balance of Payments
    • Misapplying the SPICED acronym (e.g., stating Strong Pound makes Imports Expensive)
    • Asserting that tariffs generate revenue for the exporting country rather than the imposing government
    • Failing to distinguish between the volume of trade and the value of trade when analysing currency fluctuations

    Study Guide Available

    Comprehensive revision notes & examples

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    Key Terminology

    Essential terms to know

    Likely Command Words

    How questions on this topic are typically asked

    State
    Calculate
    Explain
    Analyse
    Evaluate
    Discuss

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