Components of the Balance of Payments The Balance of Payments (BoP) for a country is a record of all the financial transactions that occur between it and the rest of the world The BoP has two main ...
Reasons for Restrictions on Free Trade (Protectionism) Free trade aims to maximise global output based on the principle of comparative advantage However, there are numerous reasons why countries wo...
Types of Trading Blocs A trading bloc is a group of countries who come together & agree to reduce or eliminate any barriers to trade that exist between them There are different levels of econom...
The Terms of Trade Terms of trade refer to the ratio of a country’s average price of exports to the country’s average price of imports The relative price of imports & exports can have a direct ...
Factors Influencing the Pattern of Trade Numerous factors influence the pattern of trade between countries Patterns of trade can change significantly over time e.g. up to the 1980s the UK traded pr...
Absolute & Comparative Advantage International trade decreases prices & increases the variety of goods/services available to a nation This results in a higher standard of living Comparative...
Characteristics of Globalisation Globalisation is the economic integration of different countries through increasing freedoms in the cross-border movement of people, goods/services, technology &...
The Impact of Government Intervention The Desired Outcomes Of Government Intervention Prices Profit Efficiency Affordable & stable prices Permitting enough to keep firms in the industry (normal...
Intervention to Control Mergers The Competition & Markets Authority (CMA) is the UK Government regulator tasked with ensuring that the creation of monopoly power is avoided & that consumers...
