ILO:
a) The main influences on the (net) trade balance:
o real income
o exchange rates
o state of the world economy
o degree of protectionism
o non-price factors
a) The main influences on the (net) trade balance:
o real income
o exchange rates
o state of the world economy
o degree of protectionism
o non-price factors
Starter
What factors could explain the UK's trading pattern?
Assess if the changes in exports and imports should be of concern for the UK economy?
Assess if the changes in exports and imports should be of concern for the UK economy?
UK’s Trade with the EU and the Rest of the World (1962-2018): Top 15 UK Trading Partners
Net Trade Balance (X-M)
Trade deficit = import expenditure is greater than export revenue
Trade surplus = export revenue is greater than import expenditure
Trade surplus = export revenue is greater than import expenditure
Influences
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Explain how average income impact (X-M)? (5 marks)
World's Largest Importing Countries from 1948 to 2019
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Explain how exchange rates impact (X-M)? (5 marks)
How a weak sterling will hit UK households | FT World
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Explain how protectionism impact (X-M)? (5 marks)
America v China: why the trade war won't end soon | The Economist
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Explain how non-price factors impact (X-M)? (5 marks)
The German Automotive Industry - The engine of Germany?
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Revision webinars
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Balance of Payments - Trade Deficit Chains of Reasoning I A Level and IB Economics
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Y1/IB 13) Causes and Consequences of a Current Account Deficit
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Additional reading:
Factors affecting Current Account Deficit
Does a Current Account Deficit Matter?
Factors affecting Current Account Deficit
Does a Current Account Deficit Matter?