TOPIC 1 PRODUCT OR MARKET CONDITIONS THAT MAY PROMPT A BUSINESS TO TRADE INTERNATIONALLY Trading Internationally
Will be able to evaluate the impact of international trade on the business Evaluation ~ GSE Grade A* Will be able to propose benefits of international trading Synthesis ~ GSE Grade A Will be able to analyse the reasons for facilitating international trade Analysis ~ GSE Grade B Will be able to demonstrate understanding by using examples/cases Application ~ GSE Grade C Will be able to explain the agreements to facilitate international trade Comprehension ~ GSE Grade D Will be able to recall reasons why trading internationally has become easier Knowledge ~ GSE Grade E
Success Criteria
Trade Liberalisation Governments take interest in imports in their countries restrict availability of items seen as harmful (e.g drugs/weapons) Stop imports which compete with state monopolies/industries Placing an import tax (tariff) is a source of income for government Embargoes (total bans) or quotas (fixed maximum quantities of imports) are also used
Trade Agreements Restrictions on trade have declined Many countries now have trade agreements This allows free movement of goods and services There are 3 types of trade bloc agreements Trade Bloc – inter-country agreement to stimulate trade
On your whiteboard write down: What do you think are the 3 types of trade agreements? 3 types of Trade Agreements Extension Task: Are there any benefits or drawbacks of being in a trade agreement?
3 types of Bloc Trade Agreements Free Trade Agreement Countries put no restrictions on imports from their partners But their partners sets its own restrictions on imports from elsewhere
3 types of Bloc Trade Agreements Customs Union Combining free trade between members with a common set of external restrictions
3 types of Bloc Trade Agreements Single Market Members also allow free movement of factors of production (such as workers or capital) The European Union is a single market
World Trade Organisation (WTO) Exist to reduce barriers to trade Ensure that countries keep to the agreements made Deals with complaints between members, organising negotiations
World Trade Organisation (WTO) WTO Agreements mean that customs unions and single markets must sometimes reduce their external barriers to trade They limit the ability of governments to give their own exporters advantage (subsidies) Clear long-term trend towards freer trade
On your whiteboard write down: What do you think are the benefits of the EU of having a single market? Benefits of EU Extension Task: Are there any drawbacks to the EU of the single market?
EU Benefits Larger markets provide opportunities for potential exporters, opening up possible economies of scale Increased competition provides incentives both to cut costs and to meet customer needs more effectively
Constraints Getting an agreement between 27 governments can be difficult Compromises have to be made There are still barriers to free trade within the EU
Against The Clock
Task
Research the agreements between countries What restrictions are in place? Why do you think these restrictions exist?
Homework
Plenary: Articulate!
Lesson Keywords Free Trade Agreement Trading Bloc Single Market Custom Market
On your cards Topic 1: Global Trade Liberalisation Write down: 2 or more things you found easy to understand/ remember from the lesson What did you find difficult to understand Exit pass
Will be able to evaluate the impact of international trade on the business Evaluation ~ GSE Grade A* Will be able to propose benefits of international trading Synthesis ~ GSE Grade A Will be able to analyse the reasons for facilitating international trade Analysis ~ GSE Grade B Will be able to demonstrate understanding by using examples/cases Application ~ GSE Grade C Will be able to explain the agreements to facilitate international trade Comprehension ~ GSE Grade D Will be able to recall reasons why trading internationally has become easier Knowledge ~ GSE Grade E
Success Criteria