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GCSE Economics Revision

International Trade

Trade, exchange rates, globalisation and the global economy.

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Are imports always bad for an economy?

International Trade is a core part of GCSE Economics. Revise the key concepts and common mistakes below, then lock them in with the free games.

Key concepts

Imports and exportsImports are goods/services purchased from abroad; exports are sold abroad; difference is trade balance.
Comparative advantageRicardo (1817): countries gain from trade by specialising in goods of lowest opportunity cost.
Free tradeTrade without tariffs, quotas or other barriers; promoted by WTO rules.
ProtectionismRestricting imports via tariffs (taxes), quotas (limits) or subsidies to domestic producers.
TariffTax on imported goods, raising their price and reducing demand for them.
GlobalisationGrowing economic interdependence via trade, investment and technology; UK trade-to-GDP ratio around 64% (2023).
Trade balanceExports minus imports of goods/services.
SurplusExports exceed imports.
DeficitImports exceed exports.
AppreciationCurrency rises in value vs others.
DepreciationCurrency falls in value vs others.
QuotaNumerical limit on imports of a good.
SubsidyGovernment payment to lower production costs.
Current accountBalance of trade plus net income/transfers.

What your exam board covers

Where International Trade sits in each exam board's specification. Tap a board to see what it lists.

OCRInternational trade and the global economySpec J205
  • Importance of international trade
  • Balance of payments
  • Exchange rates
  • Globalisation

Source: OCR GCSE (9–1) Economics (J205) specification, accessed 23 June 2026.

Learn International Trade step by step

Free interactive mini-lessons: short screens, worked examples and quick checks. Pick your exam board:

Other boards:AQA

Common mistakes to avoid

Questions where students often pick the tempting wrong answer — make sure you know the right one:

Are imports always bad for an economy?✗ Yes, imports always harm a country.   ✓ No — trade lets countries specialise and gives consumers choice.
Which is a benefit of international trade?✗ Job losses in declining industries   ✓ Wider consumer choice and lower prices

Practise International Trade — free games

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