Globalisation, International Trade and Economic Co-operation
H2 Economics - syllabus 9570, 2026
Original teaching notes
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Understand globalisation, comparative advantage and protectionism. Trace trade, investment and migration, calculate tariff effects, and judge economic co-operation.
- Identify what crosses the border
Trade in output, investment and migration transmit different effects.
- Explain why integration changes
Connect transport, technology and policy to a cost or constraint.
- Explain specialisation through opportunity cost
Comparative advantage is a lower sacrifice of alternative output.
- Trace the gains and costs for consumers
Lower prices and more choice can coexist with losses to particular households.
- Separate market access from competitive pressure
More potential customers do not guarantee higher profit.
- Distinguish productive investment from financial flows
A capital inflow needs a mechanism before it becomes a capacity gain.
- Analyse migration through skills and adjustment
Ask whose skills complement each other and where constraints remain.
- Connect openness to macroeconomic aims
External demand and supply shocks have different transmission chains.
- Read the tariff diagram from price to imports
Imports are the gap between domestic demand and domestic supply.
- Account for the tariff without counting transfers twice
Consumer losses exceed domestic producer gains and government receipts in the simple model.
- Distinguish quotas, subsidies and other barriers
The instrument changes who pays, who receives and what is restricted.
- Test the argument for protecting an industry
State the missing benefit and the condition under which protection would work.
- Evaluate agreements through the costs they remove
A signed agreement creates opportunities; firms still have to use them.
- Choose openness and resilience policies for the actual problem
A recommendation needs an objective, an alternative and evidence that could change it.