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SingaporeEconomics

International Trade and Globalisation

4 dot points across 4 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

What is globalisation, and who gains and who loses from a more connected world?

Explain globalisation, its causes, and assess its benefits and costs for countries, firms and workers
A clear O-Level answer on globalisation. What it means, its causes such as cheaper transport and technology, the role of multinationals, and a balanced look at the benefits and costs for countries, firms and workers.
8 min answer →

Why do governments sometimes restrict trade, and what are the costs of doing so?

Explain protectionism, its methods such as tariffs and quotas, the arguments for and against it, and the case for free trade
A clear O-Level answer on protectionism and free trade. The methods of protection including tariffs, quotas and subsidies, the arguments for protecting industries, the costs to consumers and efficiency, and the case for free trade.
9 min answer →

How do we measure trade with other countries, and how does the exchange rate affect it?

Explain the balance of trade and how exchange rate changes affect exports, imports and the trade balance
A clear O-Level answer on the balance of trade and exchange rates. What a trade surplus and deficit mean, what an exchange rate is, and how a stronger or weaker currency changes exports, imports and the trade balance.
8 min answer →

Why do countries trade with one another instead of producing everything themselves?

Explain why countries trade, including specialisation, and the gains and risks of international trade
A clear O-Level answer on why countries trade. How specialisation and differences in resources lead to trade, the gains from trade such as lower prices and wider choice, and the risks of relying on trade.
8 min answer →