2. TOPIC 1 PRODUCT OR MARKET CONDITIONS THAT MAY PROMPT A BUSINESS TO TRADE INTERNATIONALLY Trading Internationally

3. Will be able to evaluate the impact of international trade on the business Evaluation ~ GSE Grade A* Will be able to propose benefits of international trading Synthesis ~ GSE Grade A Will be able to analyse the reasons for facilitating international trade Analysis ~ GSE Grade B Will be able to demonstrate understanding by using examples/cases Application ~ GSE Grade C Will be able to explain the agreements to facilitate international trade Comprehension ~ GSE Grade D Will be able to recall reasons why trading internationally has become easier Knowledge ~ GSE Grade E

4. Success Criteria

5. Trade Liberalisation  Governments take interest in imports in their countries  restrict availability of items seen as harmful (e.g drugs/weapons)  Stop imports which compete with state monopolies/industries  Placing an import tax (tariff) is a source of income for government  Embargoes (total bans) or quotas (fixed maximum quantities of imports) are also used

6. Trade Agreements  Restrictions on trade have declined  Many countries now have trade agreements  This allows free movement of goods and services  There are 3 types of trade bloc agreements  Trade Bloc – inter-country agreement to stimulate trade

7. On your whiteboard write down: What do you think are the 3 types of trade agreements? 3 types of Trade Agreements Extension Task: Are there any benefits or drawbacks of being in a trade agreement?

8. 3 types of Bloc Trade Agreements  Free Trade Agreement  Countries put no restrictions on imports from their partners  But their partners sets its own restrictions on imports from elsewhere

9. 3 types of Bloc Trade Agreements  Customs Union  Combining free trade between members with a common set of external restrictions

10. 3 types of Bloc Trade Agreements  Single Market  Members also allow free movement of factors of production (such as workers or capital)  The European Union is a single market

11. World Trade Organisation (WTO)  Exist to reduce barriers to trade  Ensure that countries keep to the agreements made  Deals with complaints between members, organising negotiations

12. World Trade Organisation (WTO)  WTO Agreements mean that customs unions and single markets must sometimes reduce their external barriers to trade  They limit the ability of governments to give their own exporters advantage (subsidies)  Clear long-term trend towards freer trade

13. On your whiteboard write down: What do you think are the benefits of the EU of having a single market? Benefits of EU Extension Task: Are there any drawbacks to the EU of the single market?

14. EU Benefits  Larger markets provide opportunities for potential exporters, opening up possible economies of scale  Increased competition provides incentives both to cut costs and to meet customer needs more effectively

15. Constraints  Getting an agreement between 27 governments can be difficult  Compromises have to be made  There are still barriers to free trade within the EU

16. Against The Clock

17. Task

18.  Research the agreements between countries  What restrictions are in place?  Why do you think these restrictions exist?

19. Homework

20. Plenary: Articulate!

21. Lesson Keywords  Free Trade Agreement  Trading Bloc  Single Market  Custom Market

22.  On your cards Topic 1: Global Trade Liberalisation  Write down:  2 or more things you found easy to understand/ remember from the lesson  What did you find difficult to understand Exit pass

23. Will be able to evaluate the impact of international trade on the business Evaluation ~ GSE Grade A* Will be able to propose benefits of international trading Synthesis ~ GSE Grade A Will be able to analyse the reasons for facilitating international trade Analysis ~ GSE Grade B Will be able to demonstrate understanding by using examples/cases Application ~ GSE Grade C Will be able to explain the agreements to facilitate international trade Comprehension ~ GSE Grade D Will be able to recall reasons why trading internationally has become easier Knowledge ~ GSE Grade E

24. Success Criteria