Bring the complexities of Terms of Trade (TOT) to life with this detailed and interactive resource, designed for A-Level Economics students studying international economics. This lesson dives deep into:
The fundamentals of TOT: Learn how to calculate TOT using weighted indices of import and export prices and interpret changes in real-world data.
Factors influencing TOT: Explore how short-term shifts like exchange rates, inflation, and protectionism, and long-term drivers like productivity and income changes, affect a country's trade balance.
Applications to global trade: Analyze scenarios like sanctions on Russian oil or Australia’s high minimum wages, and understand the implications for countries like Syria relying on primary sector exports.
Critical evaluation and exam success: Develop skills to answer high-mark questions by evaluating whether TOT improvements or deteriorations are “good” or “bad,” with guidance on applying the Prebisch-Singer Hypothesis.
Packed with relatable examples, hands-on calculations, and robust evaluation frameworks, this resource equips students to analyse and debate TOT trends confidently. Perfect for mastering this essential topic and acing those tricky 8-markers!
