A-level
Economics A-level:
Why trade?
Learn It
Check you know the main principles by reviewing the list of different topic areas, either click on the topic heading to quick learn the whole topic or pick individual principles to brush up.
Why trade?
Why do countries trade?
The case for free trade
The case for free trade - absolute advantage
- The 'pre-specialisation' situation
- The situation after specialisation
- The situation after specialisation and trading
The case for free trade - comparative advantage
- The 'pre-specialisation' situation
- Finding the value of the opportunity costs
- The situation after specialisation
- The situation after specialisation and trading
- The lawyer and his secretary
International competitiveness
- What determines comparative advantage?
- What determines the competitiveness of an economy?
- Is the UK competitive?
The case against free trade
Test It
Now you have learnt the main principles, test yourself with these sample questions. If you get stuck, go back and review the principle again.
Revise It
Print these out and carry them with you!