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International Economics

International Economics

The purpose of this section is to encourage candidates to understand why countries trade, the problems involved and how these problems are addressed. Students need to understand how exchange rates affect international trade. The international trade theory introduced in this section should be related to real-world examples.

Topics covered in IB International economics

  • International trade (one topic HL extension, plus one topic HL only)
  • Exchange rates (some topics HL extension)
  • The balance of payments (one topic HL extension, plus some topics HL only)
  • Economic integration (one topic HL extension)
  • Terms of trade (HL only)
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