Economics Unit 3

Economics Unit 3

1. INTERNATIONAL TRADE

   • ADVANTAGES
     • More goods available
     • Cheaper prices available
     • More competition
       • Lower prices
         • Raise living standards
     • Specialisation
       • More efficient
     • Larger market
       • E of S
   • DISADVANTAGES
     • Negative externality
       • Pollution from factories
     • Overspecialisation
       • Reliant on producing one good
         • Impact of demand fall
     • More resources used

2. Free trade

   • No protectionism
   • Encourage market access
   • Trading abroad

3. CHINA & INDIA GROWING

   • ADVANTAGES
     • Larger market for UK
     • Cheap imports
       • Keep inflation low
       • Greater choice
     • Living standards
       • Low prices
   • DISADVANTAGES
     • Environmental impact
     • Raw material demand
       • Prices rise

4. GLOBALISATION

   • ADVANTAGE
     • International market
   • DISADVANTAGE
     • Less emission control