Syllabus: SQA - Higher Course Spec Economics
Module: Global Economic Activity
Lesson: Understanding Global Trade
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Introduction
Understanding global trade is a key element of the SQA Higher Economics course under the “Global economic activity” unit. This section explores how trade operates between nations, why it matters to countries like the UK, and how multinational enterprises and currency fluctuations influence economic decisions. For teachers, it offers a direct route to real-world examples, up-to-date case studies, and purposeful links to assessment. For schools, it supports the development of informed, globally aware learners who can apply economic thinking beyond the classroom.
Key Concepts
Students are expected to understand and apply the following syllabus-aligned concepts:
The purpose and benefits of global trade, including specialisation and comparative advantage.
The role of imports and exports in economic performance.
The impact of currency fluctuations on trade competitiveness.
The function and influence of multinational corporations (MNCs) in global markets.
The distinction between developed, developing, and emerging economies.
The interconnectedness of global economies, including the flow of goods, services, and capital.
The challenges and opportunities of globalisation for economies like the UK.
Real-World Relevance
Global trade is more than theory—it’s part of daily life. From the price of your morning coffee to the job opportunities in your town, trade affects everything. A useful recent example is the UK’s post-Brexit trade negotiations. These shifts have changed how British businesses engage with EU markets, increasing costs and reshaping supply chains. Another timely case is the rise of “friendshoring,” where firms relocate production to politically stable trade partners—a concept seen in Apple moving supply chains from China to India.
On a more accessible level, fast fashion brands that rely on imports from Bangladesh or Vietnam offer a lens to examine low labour costs, currency exchange, and the role of MNCs in developing economies.
How It’s Assessed
This topic is assessed through both the question paper and the assignment in the SQA Higher Economics course. Expect:
Data interpretation questions using charts or extracts related to global trade.
Short-answer and extended-response tasks focusing on causes and consequences of trade imbalances or currency changes.
Command words such as:
Describe (e.g. “Describe how a change in exchange rate affects UK exports”)
Explain (e.g. “Explain one reason why a firm might relocate to a developing country”)
Analyse (e.g. “Analyse the impact of globalisation on a UK-based MNC”)
Evaluate (e.g. “Evaluate the effects of trade barriers on developing economies”)
Encourage students to back up arguments with examples and connect theory to real outcomes.
Enterprise Skills Integration
This topic is a natural fit for embedding enterprise skills:
Problem-solving: Debating trade-offs of offshoring vs local production.
Decision-making: Analysing risks of fluctuating exchange rates.
Numeracy: Working with trade data or currency conversions.
Critical thinking: Weighing up the ethical considerations of MNCs operating in low-income countries.
A plug-and-play classroom task might be a simulation where students act as business advisers recommending where to set up international operations based on labour costs, trade policies, and exchange rates.
Careers Links
This content aligns well with Gatsby Benchmarks 4, 5, and 6:
Economics in action: From logistics to banking, global trade cuts across careers.
Jobs and pathways: Roles in trade compliance, international finance, customs brokerage, and import/export logistics are just the start.
Skills spotlight: Students see the need for analysis, communication, and commercial awareness—skills that employers consistently value.
Invite a local entrepreneur who trades internationally or an ex-student working in international business to bring this topic to life. Even better, link with the business studies department for a collaborative project.
Teaching Notes
What works well:
Use real-time news articles for analysis exercises.
Start lessons with “what’s in your bag?” to trace products back to trade routes.
Set up structured debates around trade-offs (e.g. economic gains vs ethical concerns).
Common pitfalls:
Students may confuse exports and imports—use tangible examples to anchor understanding.
Currency exchange effects are abstract—bring them to life with holiday budgeting tasks or brand pricing comparisons across countries.
Extension ideas:
Investigate trade blocs like the EU or ASEAN and their impact on member nations.
Model trade flows using interactive maps or gamified tools (if time allows).
Ask students to prepare a briefing for a UK company considering expansion into an emerging economy.
This topic offers depth, variety, and strong assessment value. Delivered well, it doesn’t just tick syllabus boxes—it broadens students’ economic perspective and sharpens their critical thinking.
