International economics

Table of Contents

1. Topic pack - International economics - introduction
2. Section 3.1 International trade (notes)
   1. Reasons for trade - introduction
   2. Benefits of trade
   3. Absolute advantage
   4. Comparative advantage
   5. Absolute and comparative advantage (video)
   6. World Trade Organisation (WTO)
   7. The role of the WTO
   8. WTO background information
   9. Trade protection - introduction
   10. Introduction to trade policies (video)
   11. Types of protectionism
   12. Tariffs - case study
   13. Imposing a tariff - calculation
   14. Setting a quota - calculation
   15. Giving a subsidy - calculation
   16. Arguments for protectionism
   17. Arguments against protectionism
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
12. Section 3.5 Terms of trade - notes
13. Section 3.5 Terms of trade - questions
14. Print View

Trade protection - introduction

Now that you understand there are many good reasons for the world to have free trade you need to know that there are also arguments for restricting free

trade, referred to as protectionism because it is an attempt to protect domestic industries from foreign (often cheaper - for whatever reason such as low wage workers or exchange rate differences) competition.

The focus of the IB syllabus is on the ways countries try to restrict free trade as a contrast to the srguments for free trade.

Arguments for and against protectionism come later.

This is a very contentious issue and countries that ostensibly are in favour of freedom (USA, Europe, UK ) have very many unfair protectionist policies that are designed to stop free trade.