Joseph Thomson
Explain why international trade has benefited UK consumers. (15 marks)
Intro - define globalisation & thus international trade and include SEM & WTO.
Point More choice Cheaper prices Competitiveness
Knowledge Consumers can buy Countries specialise Open economy
imports as well as in certain goods. allows foreign
domestic goods. competition.
Evidence N/A N/A ‘Low-cost foreign
producers.’
Application Veblen goods, sought Ghana is one of the Chinese sweatshops,
after vehicles. biggest cocoa less regulation.
exporters.
Analysis Benefits consumers Advantages in Reduces monopoly
through satisfaction production enable power and stimulates
gained in consuming cheaper prices per productivity in
other goods. unit, increasing incumbent firms, may
consumer surplus. boost output which
benefits all.
Diagram N/A Table of comparative AS right-shift.
advantage.
International trade is the exchange of goods and services between the borders of countries, and
these goods are often known as imports (inflows) and exports (outflows). With the work of the
World Trade Organisation, the world economy is becoming more and more open, with trade
liberalisation removing barriers like tariffs between countries. Globalisation is the concept of
increased economic integration between world economies, and with trading blocs like the Single
European Market and NAFTA too, it is clear that trade is currently enabled with the least friction
in modern history.
One way in which this has benefited UK consumers is through increased choice, as trade
provides the ability to buy foreign goods that may not be available in the UK; consumers can
now choose between imports and domestic goods when exercising their spending power. One
such example of an import that is heavily demanded is that of foreign supercars, which could be
seen as Veblen goods, because despite their high price many demand them for their image.
This provides a benefit to consumers as they will gain satisfaction and welfare through
consuming different goods, likely providing high marginal utility because they are new.
Another reason international trade has benefited UK consumers is through cheaper prices.
Countries specialise in certain goods, and thus they often create economies of scale in those
goods, making them cheaper than their domestic equivalent. For example, Ghana specialises in
production of cocoa of which it is one of the world’s largest exporters. A country may possess a
Explain why international trade has benefited UK consumers. (15 marks)
Intro - define globalisation & thus international trade and include SEM & WTO.
Point More choice Cheaper prices Competitiveness
Knowledge Consumers can buy Countries specialise Open economy
imports as well as in certain goods. allows foreign
domestic goods. competition.
Evidence N/A N/A ‘Low-cost foreign
producers.’
Application Veblen goods, sought Ghana is one of the Chinese sweatshops,
after vehicles. biggest cocoa less regulation.
exporters.
Analysis Benefits consumers Advantages in Reduces monopoly
through satisfaction production enable power and stimulates
gained in consuming cheaper prices per productivity in
other goods. unit, increasing incumbent firms, may
consumer surplus. boost output which
benefits all.
Diagram N/A Table of comparative AS right-shift.
advantage.
International trade is the exchange of goods and services between the borders of countries, and
these goods are often known as imports (inflows) and exports (outflows). With the work of the
World Trade Organisation, the world economy is becoming more and more open, with trade
liberalisation removing barriers like tariffs between countries. Globalisation is the concept of
increased economic integration between world economies, and with trading blocs like the Single
European Market and NAFTA too, it is clear that trade is currently enabled with the least friction
in modern history.
One way in which this has benefited UK consumers is through increased choice, as trade
provides the ability to buy foreign goods that may not be available in the UK; consumers can
now choose between imports and domestic goods when exercising their spending power. One
such example of an import that is heavily demanded is that of foreign supercars, which could be
seen as Veblen goods, because despite their high price many demand them for their image.
This provides a benefit to consumers as they will gain satisfaction and welfare through
consuming different goods, likely providing high marginal utility because they are new.
Another reason international trade has benefited UK consumers is through cheaper prices.
Countries specialise in certain goods, and thus they often create economies of scale in those
goods, making them cheaper than their domestic equivalent. For example, Ghana specialises in
production of cocoa of which it is one of the world’s largest exporters. A country may possess a
