100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
IB Economics SL Global Economy Notes CA$6.75   Add to cart
Quickly navigate to
Preview
  2.  
  3. Internationale Baccalaureate
  4.  
  5. Internationale Baccalaureate
  6.  
  7. Internationale baccalaureate

Class notes

IB Economics SL Global Economy Notes
 4 views  0 purchase
  • Course
  • Internationale baccalaureate
  • Institution
  • Internationale Baccalaureate

Complete and detailed class notes summarising the entire global economy part of the course for Economics SL students. These notes are for the IB Diploma program of 2021 to 2028.

Preview 3 out of 16  pages

Document information

  • June 5, 2023
  • 16
  • 2022/2023
  • Class notes
  • P.o sabalot
  • Ib economics sl

Subjects

  • ib economics sl
  • global economy
  • class notes

Written for

  • Internationale baccalaureate
  • Internationale baccalaureate
  • Internationale baccalaureate
All documents for this subject (57)

Seller

avatar-seller
aurelienlions

Content preview

Global economy
Chapter 23
Trade: the buying and selling of goods between international boundaries. Recently, the value of
imports and exports as a share of GDP has been globally increasing, showing the global growth in
importance of trade.

Trade brings many benefits: increase in domestic production and consumption, economies of scale in
production, greater choice for consumers, interdependence of countries reducing hostility, and
source of growth.

Chapter 24
WTO: WTO is a place where governments try to sort out the trade problems they face with each
other. It is run by its member governments. WTO principles are the foundation of the multilateral
trading system. WTO encourages free trade as much as possible if there are no undesirable side
effects. Rules must be transparent and predictable.

WTO helps with trade negotiations, implementation and monitoring of trade policies, building trade
capacity for developing countries, and outreaching to other organisations to enhance economic
development and growth.

WTO encourages non-discrimination, more open and free trade, predictable and transparent policies,
more competitive markets (discourages unfair practices), protection of the environment, and
beneficial policies for developing countries.

Trade protectionism:

Trade protectionism is a way government can restrict international trade.




It exists four main kinds of trade restrictions: tariffs, import quotas, subsidies, and administrative
barriers.

,Tariffs are taxes imposed on imported goods.




After the imposition of a tariff, it occurs: an increase in domestic quantity supplied and a decrease in
quantity demanded, as well as a decrease in imports; the domestic consumers are worse off; the
domestic producers are better off; domestic employment increase; the government gains tariff
revenues; the domestic income distribution worsens; the inefficiency in production increases; the
foreign producers are worse off; it results in a global misallocation of resources.




Social surplus= a+b (consumer surplus) + c+g (producer surplus)

Quotas a legal limit to a quantity of aa good that can be imported over a particular period. The effects
of quotas are similar to the ones of tariffs, except government does not catch revenue.

, The social surpluses are the same as for tariffs.

Subsidising local markets for domestic supply has multiple effects (increase in quantity supplied and
decrease in imports, consumption of the good is not affected, the domestic producers are better off,
the domestic employment increases, but it occurs in counterpart, negative effects on the government
budget, taxpayers are worse off, the inefficiency of production increases, the exporting countries are
worse off and a misallocation of resources results). Subsidising exported goods is seen as unfair by
governments as it will worse off the domestic producers in the country where the good is exported.




Administrative barriers are all the customs procedures involving administrative inspections,
valuations (determining the value of the good), and health security checking (technical standards).

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller aurelienlions. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$6.75. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

80461 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$6.75
  • (0)
  Add to cart