how can international trade cause stability, growth and development

Question 1

how can international trade promote stability (3)

Answer 1

can promote stability if countries are under the WTO’s same rules

encourages states to cooperate - multilateral trade agreements - more economic and political stability

bilateral trade agreements can go beyond trade

Question 2

how can international trade promote economic growth (3)

Answer 2

stimulates production - contributes to GDP growth and further investment - FDI

employment opportunities created - income raised - poverty levels decrease

Economic multiplier - can be enhanced by trade on different scales

Question 3

how can international trade promote development (3)

Answer 3

removal of tariffs to LIDC trade helps generate foreign exchange - can be invested internally into infrastructure, health and education

Corporate responsibilities of MNC’s - economic and social benefits

membership of trade and political unions - can help socioeconomic development

Question 4

how does migration of international highly skilled workers promote these 3 factors (4)

Answer 4

increase innovation

channel for ideas circulation

migrant workers in silicon valley share info with colleagues around world - increased productivity - less wasted time

migrants return home with new knowledge

Question 5

how do flows of technology influence these 3 factors (4)

Answer 5

increasing availability of ICT around the world

corruption reduced - under borders with electronic data storage

Movement of goods made simpler - cheaper quicker - online

improved cyber security - greater protection

Question 6

how do flows of money influence the 3 factors (2)

Answer 6

in LIDC’s domestic and foreign investment in infrastructure - important for development

trade agreements may go beyond trade - spread of democracy - greater human rights