International economics

Table of Contents

1. Topic pack - International economics - introduction
2. Section 3.1 International trade (notes)
3. Section 3.1 International trade (questions)
4. Section 3.1 International trade - simulations and activities
5. Section 3.2 Exchange rates (notes)
6. Section 3.2 Exchange rates - questions
7. Section 3.2 Exchange rates - simulations and activities
8. Section 3.3 Balance of payments - notes
9. Section 3.3 Balance of payments - questions
10. Section 3.4 Economic integration - notes
11. Section 3.4 Economic integration - questions
    1. Trading blocs - essay
    2. Estonia becomes the 17th member of the euro zone
    3. Economic policy in the euro zone
    4. Eurozone to consider closer economic scrutiny
    5. A flat earth?
12. Section 3.5 Terms of trade - notes
13. Section 3.5 Terms of trade - questions
14. Print View

Trading blocs - essay

Question 1

(a) Explain the difference between trade creation and trade diversion.

(b) "The benefit of joining a trading bloc will always outweigh the costs". Do you agree? Justify your view.