Syllabus: SQA - Higher Course Spec Economics
Module: Global Economic Activity
Lesson: Understanding the Impact of Global Economy

Introduction

In SQA Higher Economics, the “Global economic activity” strand explores how international trade, currency movements and global institutions influence the UK and Scotland’s economies. It’s where students move beyond domestic models and start thinking like economists on a global scale. This topic sits firmly within the SQA Higher specification, and it supports the curriculum aim of equipping learners to apply economic reasoning to real-world decisions.

For teachers and school leaders, this topic offers fertile ground to link classroom learning with global events, economic policy, and career-ready thinking. It’s not abstract. It’s immediate, relatable and often headline news.

Key Concepts

Students are expected to understand and apply the following:

• Nature and purpose of global trade: Why countries trade, how comparative advantage works, and the benefits/challenges of global markets.

• Multinational corporations (MNCs): Their role in developing and emerging economies, impact on local jobs, wages, investment, and regulation.

• Exchange rates: Causes and effects of currency fluctuations on imports, exports, tourism, and inflation.

• Emerging economies: What defines them, and how their growth affects global economic patterns and trade relationships.

• Barriers to trade: Tariffs, quotas and subsidies – and how they influence trade flows.

• Balance of payments: Particularly the current account – what it tells us about a country’s trade position.

These are not standalone topics; students are expected to interconnect them, evaluate their impact, and apply reasoning to real-life scenarios.

Real-World Relevance

Global economic forces shape everyday life. A lesson on exchange rates can begin with the fluctuating pound-euro rate and how it affects the price of a holiday abroad or the cost of importing tomatoes from Spain.

Recent events such as Brexit, COVID-19 supply chain disruptions, and trade tensions between China and the US offer compelling case studies. You could explore how UK exports fared post-Brexit, or how supply shocks in semiconductors affected UK manufacturing.

A practical mini case study: examine how a UK-based clothing brand that imports cotton from Bangladesh and exports finished goods to Europe might be affected by rising shipping costs and currency volatility.

How It’s Assessed

In the SQA Higher exam, students are assessed through:

• Data interpretation: Using short economic texts, graphs or tables, students analyse and evaluate global economic scenarios.

• Short-answer and extended-response questions: These probe understanding of global trade concepts, demand reasoned judgements, and test the ability to apply concepts to unfamiliar contexts.

• Command words: Look out for “explain”, “analyse” and “evaluate”. Students should be taught to unpack these precisely. For example, “analyse the impact of a weak pound on UK exporters” expects more than definition – it needs a chain of reasoning with evidence.

Encourage students to practise these skills explicitly and model how to build strong responses with clear structure and economic terminology.

Enterprise Skills Integration

This topic is ideal for developing enterprise skills such as:

• Problem-solving: For example, how might a UK firm respond to a sudden import tariff on key raw materials?

• Decision-making: Choosing markets to enter or sourcing alternatives in the face of currency shifts.

• Critical thinking: Evaluating whether MNCs help or hinder economic growth in a developing country.

You can simulate these scenarios through structured debates or group decision-making tasks. Encourage students to consider stakeholder perspectives – governments, firms, workers – when forming arguments.

Careers Links

This unit maps well to Gatsby Benchmark 4 (linking curriculum learning to careers) and 5 (encounters with employers). Suggested pathways include:

• International trade analyst

• Policy advisor at the Department for Business and Trade

• Business development roles in exporting firms

• Economic researcher for NGOs or multinational companies

Bring in guest speakers working in import/export logistics or global marketing. Or use job descriptions from real companies as prompts for research and reflection activities.

Teaching Notes

• Start local: Use examples relevant to students – the cost of petrol, mobile phone imports, supermarket goods. Then zoom out to explain the global links.

• Common pitfalls: Students often confuse exchange rate depreciation with appreciation, or assume MNCs always benefit local economies. Use diagrams and real news stories to reinforce key distinctions.

• Differentiation tip: Provide sentence starters for extended answers and scaffolded case study prompts for mixed ability groups.

• Extension activity: Ask students to research a recent trade dispute (e.g. EU vs US over aircraft subsidies) and present the economic impacts on all parties involved.