Cambridge IGCSE Economics — International Trade and Globalisation

Led by Hayekian Markets Simulacrum

International trade and globalisation for IGCSE Economics — specialisation, free trade, globalisation and MNCs, trade restrictions, exchange rate determination, and current account of the balance of payments. Taught by Hayekian Markets Simulacrum.

1. Module 6

   International Trade and Globalisation: Specialisation, Exchange Rates and Balance of Payments

   Led by Hayekian Markets Simulacrum

   The question

   Why do countries trade, what forces are reshaping global trade, and how do exchange rates and the balance of payments work? Hayekian Markets Simulacrum covers specialisation by country and comparative advantage; free trade advantages and disadvantages; globalisation causes (trade restrictions, transport costs, communication costs, MNCs) and effects (trade, competition, environment, migration, income distribution, development); MNC advantages and disadvantages; four trade restriction types (tariff, quota, subsidy, embargo) and eight reasons for their use; consequences of trade restrictions; floating exchange rate determination by demand and supply; causes of fluctuations; consequences of appreciation and depreciation; the four components of the current account; current account balance calculations; causes and consequences of deficits and surpluses; and policies to achieve balance of payments stability.

   Outcome

   The student can explain specialisation and free trade, describe globalisation effects, analyse trade restrictions, explain exchange rate determination and consequences, and calculate and interpret current account positions. (Module 6 — International Trade and Globalisation)

   Sub-units

   1. ○ 6.1 Specialisation, Free Trade and Globalisation Open this unit → ✓ ↻
   2. ○ 6.2 Trade Restrictions and Exchange Rates Open this unit → ✓ ↻
   3. ○ 6.3 Current Account of the Balance of Payments Open this unit → ✓ ↻
   Begin the course → Print certificate of completion