A selection of revision notes on global trade and protectionism

The financial and economic crisis that has enveloped much (but not all!) of the global economy over recent years has led to renewed fears of a sustained contraction in global trade, a partial reversal of globalisation and a return to protectionism. Many blogs have appeared on these highly topical issues in recent months and this blog provides a selection of revision blogs and notes for students preparing fro their June 2010 papers.

A quick reminder of the AQA specification

A2 Macroeconomics - Globalisation and trade

* Students should have an understanding of the causes of globalisation, its main characteristics, and the different consequences for developing and for developed countries.
* There should be some understanding of the role of multinational corporations in the development of globalisation.
* Students should understand the model of comparative advantage, the distinction between comparative and absolute advantage, and be able to use a simple numerical example to illustrate this distinction.
* They should be able to evaluate the importance and limitations of these concepts as well as discuss the costs and benefits of trade generally
* There should be an understanding of the reasons for changes in the pattern of trade between the UK and the rest of the world, as well as the potential costs and benefits of trade for an economy.
* Students should also be able to discuss the nature and importance of trade between developed and developing countries for both parties.
* There should be an awareness of the extent of progress towards free trade in recent years, especially through the role of the World Trade Organisation (WTO).
* Equally, students should understand the causes and consequences of protectionist policies such as tariffs, quotas and export subsidies.

Our selection of recent blogs can be found underneath the related entries heading