Exports/ Imports (Trade) – AS/A LEVELS/IB/IAL

Exports/ Imports (Trade) – AS/A LEVELS/IB/IAL

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Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes 

Exports/ Imports (Trade)

The term export is used when a good or service leaves the country and the money flows into the country. Imports refer to a goods or services that comes into the country and the money would therefore flow out of the country.

Exports and Imports are components of the aggregate demand curve and are known as net trade together (X-M).

AD = C + I + G + (X – M)

C = Consumption (Around 60% of AD is consumption)

I = Investment

G = Government Spending

X = Exports

M = Imports

What impacts exports and imports?

  • Exchange rates
  • Protectionist policies e.g. tariff & quotas
  • Quality of products
  • Transport costs
  • Real Incomes – A rise in real incomes will cause an increase in imports
  • State of the world economy – A recession in one country will negatively impact other closely integrated economies


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