Economics 2: The World Economy — F86E 35
SCQF level 8
Report conventions should be followed as per the Business Department’s house style. Should be approximately 1,500 words. This should be completed by week 10.
Report Questions to Research
1 Explain what is meant by the term, ‘free trade’?
2 Explain absolute and comparative advantage using either a worked example, or an analysis of the changes in the United Kingdom’s (UK) absolute and comparative advantage.
3 Identify three gains from trading internationally.
4 Explain the terms ‘protectionism’ and ‘barriers to trade’. In your explanation identify why governments might wish to use trade barriers to protect their respective economies.
5 Describe the role of the World Trade Organisation (WTO) in the development of free trade.
6 Explain the role of one of the following trade blocs:
- The European Union (EU)
- The North American free Trade Agreement (NAFTA)
- The Association of Southeast Asian Nations (ASEAN)
7 Referring to UK trade figures from recent years explain the composition of the UK balance of payments.
8 What are the general trends in UK trade over the last 30 years? You should refer to the current balance over this period in your response.
9 How is the balance of payments affected by exchange rates? You may provide a basic theoretical example or recent case to illustrate this.