What you'll learn
Why and how countries trade with each other.
Key ideas
- Exports vs imports; the balance of trade.
- Trade barriers: tariffs and quotas (protectionism).
- Specialisation and the gains from free trade.
Exam tips
- Distinguish tariffs from quotas.
- Weigh the pros and cons of protectionism.
Common mistakes
- Confusing exports and imports.
- Mixing up tariffs and quotas.