IBDP Economics Chapter 13 Notes

international trade

STUDY NOTES FOR ECONOMICS CHAPTER 13 – INTERNATIONAL TRADE

These notes have specially been curated by expert teachers to simplify and enlighten concepts given in IB International Trade HL. The notes are comprehensive in nature and are sufficient to study the chapter in depth and one need not look for other resources beyond the notes provided on our website which can be accessed for free. The notes for International Trade IBDP HL are available on our official website and can be downloaded for free. The material made available on Tychr’s website is available for all IBDP subjects and is specially curated after an extensive amount of effort to ensure that the notes are in consonance with the IB curriculum and are an amalgamation from various textbooks prescribed by the IBO.

In the chapter of International Trade we will look at the various benefits of trade. Free trade is also introduced which is defined by the absence of government intervention in international trade. The theory of absolute advantage is studied and shown through the PPC curve as well for better understanding. The representation of production and consumption with no trade and production and consumption with trade through a PPC curve is an important concept of the chapter. The law of competitive advantage and the assumptions of this are studied in detail in this chapter. Next we study the World Trade Organisation, its objectives and principles. Discusses as to how a Nation can create trade barriers with the specific goal of protecting its economy from the perils of international trading.

There are various methods to do so and some of them discussed in the chapter are tariffs, import quotas, subsidies and administrative barriers. It is very crucial to understand that trade protection has its advantages and disadvantages which are discussed in detail in the chapter . This chapter discusses the importance of International Trade between different countries as it raises living standards and provides employment enabling consumers to enjoy a greater variety of goods. although it is very necessary for the students to study this chapter so as to understand the nuances of international trade in an economy arguments for and against trade protection has been a debatable topic since many years and thus it is very important for the students to have their concepts clear in order to have a strong foundation in the study of Economics.