The LWB Level 2 Analysing International Trade 2.2 Learning Workbook is a comprehensive, write-on resource designed for the NCEA Level 2 External Assessment: Analyse international trade using economic models. This workbook provides students with the framework to understand why nations trade, how exchange rates fluctuate, and the significant impact global markets have on New Zealand's standard of living.
Key Features
The Basis of Trade: Introduces the fundamental reasons why countries trade. Students master the concept of Comparative Advantage—learning that trade allows countries to specialize in what they produce most efficiently, leading to a greater total output of goods and services.
New Zealand’s Trade Profile: A deep dive into what we export (e.g., dairy, meat, tourism) and what we import (e.g., machinery, vehicles, fuel). Students analyze our major trading partners, such as China, Australia, and the USA, and the importance of these relationships.
Supply and Demand for Exports and Imports: Practical practice in using economic models to show how changes in overseas demand or domestic supply affect the quantity and price of New Zealand’s trade.
Exchange Rate Analysis: A critical module on the New Zealand Dollar (NZD). Students learn how to use Supply and Demand curves for the currency to illustrate Appreciation and Depreciation.
WPID (Weak Pivot, Import Dearer): A mnemonic-based approach to understanding how a falling dollar makes exports more competitive but imports more expensive.
SPICED (Strong Pivot, Imports Cheaper, Exports Dearer): Analyzing how a rising dollar affects the "Terms of Trade" and the cost of living.
The AD/AS Model in Trade: Mastering how to show the impact of trade on the wider economy. Students learn to shift the Aggregate Demand curve based on changes in Net Exports (X−M) and how this affects Real GDP and inflation.
Trade Barriers and Protectionism: Investigates the tools governments use to restrict trade, such as Tariffs, Quotas, and Subsidies. Students learn to use the One-Market Model to illustrate the effects of a tariff on domestic production, consumption, and government revenue.
Free Trade and Trade Agreements: Explores the benefits of reducing barriers. Students study the impact of CER (Closer Economic Relations) with Australia and various Free Trade Agreements (FTAs), focusing on how they promote efficiency and consumer choice.
The Balance of Payments: An introduction to the Current Account. Students learn how New Zealand tracks the value of goods and services traded, as well as the flow of investment income and transfers.
Impacts on Stakeholders: Evaluates how trade shifts affect different groups, such as domestic consumers, local producers, and workers in export-oriented industries.
Achievement, Merit, and Excellence Scaffolding: Progresses from identifying trade flows to the "Excellence" level of providing a comprehensive analysis of how a change in a global variable (like a commodity price spike) ripples through the entire New Zealand economy.
Step-by-Step Worked Examples: Features model answers that demonstrate how to correctly label trade graphs and link economic theory to contemporary New Zealand trade data.
Glossary of Trade Terms: A guide to essential vocabulary—such as Trade Balance, Interdependence, Quotas, and Appreciation—ensuring students use the correct technical language.