Economics · Unit 4: The global economy

EC4.1 — Benefits of international trade

Economics · SL / HL · syllabus-mapped notes

1. EC4.1.1

   Benefits of international trade, including:

   Explain the benefits of international trade, competition, lower prices, greater choice, access to resources and to larger markets.

2. EC4.1.2

   Absolute and comparative advantage

   Explain absolute and comparative advantage, identify each from data, and show the gains from trade using opportunity costs.

3. EC4.1.3

   Limitations of the theory of comparative advantage

   Evaluate the assumptions that limit the theory of comparative advantage in practice.