Syllabus: AQA - GCSE Economics
Module: How the Economy Works
Lesson: 3.2.4 International Trade and the Global Economy

Introduction

This lesson aligns with the AQA GCSE Economics specification, section 3.2.4 International Trade and the Global Economy. It explores how the UK interacts with other economies, the benefits and challenges of global trade, and how exchange rates, globalisation, and trade policies impact domestic markets.

For teachers, this topic is a chance to blend textbook learning with timely global events. For students, it’s a gateway into understanding how international economics affects their day-to-day life — from the price of their trainers to job prospects in a globalised workforce.

Key Concepts

The AQA specification covers several core ideas in this section:

• Specialisation and trade: Why countries specialise and the role of comparative advantage.

• Exports and imports: Understanding trade flows and the UK’s trade partners.

• Balance of payments: The current account and what it shows about a country’s economic health.

• Exchange rates: How currency values affect import/export prices.

• Globalisation: What it means, its causes, and its impact on consumers, producers and workers.

• Trading blocs and protectionism: The function of groups like the EU and the effects of tariffs and quotas.

Each concept supports broader syllabus aims — equipping students to interpret economic data, form reasoned arguments, and apply economic principles to real-world contexts.

Real-World Relevance

This topic is rich with live examples:

• Post-Brexit trade: The UK’s evolving trade relationship with the EU offers tangible illustrations of trade agreements and friction.

• Exchange rate volatility: The pound’s performance against the dollar or euro can be linked to everything from inflation to tourism.

• Global supply chains: Disruptions from COVID-19 or conflicts (e.g. Ukraine) provide context for global interdependence and just-in-time production risks.

• Protectionism and tariffs: The US–China trade tensions or UK’s tariffs on steel are topical entry points for classroom debate.

Bringing these stories into lessons helps students make the leap from theory to impact.

How It’s Assessed

In AQA GCSE Economics, international trade and the global economy are tested through:

• Multiple choice and short-answer questions that check understanding of key terms (e.g. exchange rate, tariff).

• Data response questions where students interpret trade balance figures or exchange rate movements.

• Extended writing tasks asking students to evaluate the impact of globalisation or analyse the pros and cons of a weak pound.

Command words to prep students for: explain, analyse, assess, evaluate. They’ll need to use diagrams where relevant, such as shifts in exchange rates or trade balance graphs.

Enterprise Skills Integration

This topic naturally taps into enterprise competencies:

• Problem-solving: Considering the impact of trade policies on different stakeholders.

• Decision-making: Weighing up pros and cons of tariffs or trade deals.

• Critical thinking: Challenging assumptions about globalisation’s benefits.

• Communication: Justifying economic decisions clearly in writing and discussion.

Tools like our Pitch Deck Analyser or MarketScope AI can scaffold activities like role-playing trade negotiations or simulating global trade impacts on a UK firm.

Careers Links

There are clear links to Gatsby Benchmarks 4, 5, and 6 here:

• Career relevance: This content underpins careers in international business, logistics, government, finance, and diplomacy.

• Employer encounters: Use guest speakers or case studies from export firms, customs officers, or financial analysts.

• Skills development: Understanding trade and globalisation supports roles requiring economic awareness — from policy to PR.

Encourage students to explore routes into trade-related careers, such as apprenticeships with import/export firms or degrees in international economics.

Teaching Notes

Time-saving tips:

• Use recent news clips or headlines to launch lessons — a weak pound or trade deal fallout hooks attention.

• Create simple case studies (e.g. “What happens to a UK chocolate company if the cost of cocoa rises due to tariffs?”).

Common pitfalls:

• Confusing absolute and comparative advantage — use practical examples (e.g. pizza vs pasta production).

• Overgeneralising globalisation — encourage students to explore both winners and losers.

Extension ideas:

• Mini debates on protectionism vs free trade.

• Students model the impact of exchange rate changes on a fictional business’s import/export costs.