Topics covered are balance of payments, trade deficit , current account deficit, terms of trade and marshall lerner conditions explain using the exchange rate diagrams and formulae explain using the exchange rate diagrams and formulae. Receive 20% off a complete set of ap macro, ap micro, or ib economics class notes with the coupon code augeconsale between now and the end of august. Terms of trade represent the ratio between a country's export prices and its import prices and are used as a measure of a nation's economic health. Terms of trade is a term that is often misunderstood by ib economics students simply put, a nation's terms of trade refers to the relative price of a country's exports to its imports.
International trade quiz that tests what you know perfect prep for international trade quizzes and tests you might have in school. Find ib economics hl and ib economics sl past papers, free and official, in our other article common study mistakes for ib economics sl/hl it's important to avoid falling behind in ib economics sl/hl there's just too much material to learn easily if you get significantly behind. Development economics economic development measuring development the role of domestic factors in the process of development the role of international trade the role of foreign direct investment and the multinational corporation the roles of foreign aid and multilateral development assistance the role of foreign debt the balance between markets.
Trade is a basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties. Terms of trade - a detailed understanding of the terms of trade what the terms of trade is and the short run and long run causes of changes to the terms of trade. Terms of trade is an index that shows the value of a country's average export prices relative to their average import prices deteriorating (adverse) terms of trade exists when the average price of exports falls relative to the average price of imports. What factors influence the terms of trade 1 relative inflation rates 2 relative productivity rates 3 changes in exchange rates 4 changes in demand for exports/imports 5 changes in incomes 8 of 9. Terms of trade effects: theory and methods of measurement the differences between these two indexes come from the export and import components of the gdp, and are measured by the trading gains index fisher indexes are a natural way to estimate the conceptual economic indexes of trading gains and real gdi because they are averages of the.
Economics terms of trade question suppose that china and finland both produce oil and stained glass china's opportunity cost of producing a pane of stained glass is 5 barrels of oil, while finland's opportunity cost of producing a pane of stained glass is 8 barrels of oil. Economics ib standard level chapter 26 - terms of trade 1 pages chapter 30 - international trade and economic development 1 pages. Ib economics from wikibooks, open books for an open world 48 terms of trade development economics subject:ib diploma programme subject:ib diploma. Definition terms for ib hl economics save terms of trade: an index that shows the value of a country's average export prices relative to their average import. - cindy mueller, ib economics teacher, frankfurt international school the economics course book is thorough and accurately covers the course syllabus the connection with theory of knowledge is outstanding.
Ib economics ib economics glossary of terms this resource is designed to help ensure that you can make accurate use of specialist economics terms in. International trade is the exchange of capital, goods, and services across international borders or territories trading-partners reap mutual gains when each nation specializes in goods for which it holds a comparative advantage and then engages in trade for other products. Ib economics higher level subject brief the ib diploma programme, for students aged 16 to 19, is an academically challenging and balanced programme of education that prepares students for success at university and life beyond. Economics model essay 3 findings from a variety of studies show that routine consumption of artificial sweeteners such as aspartame, saccharin and sucralose may lead to higher likelihood of heart disease, stroke, diabetes and high blood pressure. Start studying ib economics definitions- international trade learn vocabulary, terms, and more with flashcards, games, and other study tools.
Without trade, the domestic price and quantity are p & q if a country opens up to world supply, price falls to p1, and output increases from q to q2 as a result, domestic producers' share falls to q1 and imports now dominate, with the quantity imported q1 to q2. Slide4: terms of trade introduction in year 4 the import prices rise by relatively more than export prices the tot falls back to 100 in year 4 a given amount of exports buys the same amount of imports as it did in year 1 in year 5 export prices fall but import prices fall more there is an improvement in the tot to 10189 if export prices rise relative to import prices or fall less than import. Terms of trade is the quantity of foreign goods and services (imports) that a country can purchase from the proceeds of the sale of its goods and services (exports) of a given quantity from another country. Evaluation is a very important concept in economics it is what you to when you have finished analysing by analysing we mean giving your definitions, explanations, examples and diagrams (deed.
Economics ib economics ib eco mark schemes 48 terms of trade: 51 sources of economic growth and/or development contents pages for each sub-section of the. Benefits of free trade free trade means that countries can import and export goods without any tariff barriers or other non-tariff barriers to trade essentially, free trade enables lower prices for consumers, increased exports, benefits from economies of scale and a greater choice of goods.
Topics covered are balance of payments, current account deficit, terms of trade , causes and consequences of protectionism and marshall lerner conditions with diagrams and formulae evaluation will include various strategies for tackling the current account deficits, balance of payments and causes and consequences of protectionism. Unit 4 international economics the purpose of this section is to encourage candidates to understand why countries trade, the problems involved and how these problems are addressed.