International integration → trade and currency effects → distribution and public finance → development constraints and strategies.
Trade and integration
Use comparative advantage, trading arrangements and welfare effects. 1 · 2 · 3 · 4 · 5
External performance
Connect the balance of payments, exchange rates and competitiveness. 6 · 7 · 8
Distribution
Distinguish poverty, income inequality and wealth inequality. 9 · 10
Public finance and policy
Separate flows from stocks; assess incentives, demand and sustainability. 11 · 12 · 13 · 14
Development
Use several indicators, identify the binding constraint and match the strategy. 15 · 16 · 17
Essential formulas and conditions
Terms of trade = export price index / import price index × 100.
Tariff revenue = tariff per unit × imports after the tariff.
Marshall–Lerner: |PED exports| + |PED imports| > 1 under the standard assumptions.
Gini = A / (A + B); relative unit labour cost depends on wages and productivity.
Key diagrams
Comparative advantage p. 12 | Tariff welfare p. 27 | Fixed exchange rate p. 37 | J curve p. 40 | Lorenz curve p. 48
Read a diagram: identify the cause → trace the change → read the result → state the condition that could change it.
Notation: Pw = world price; t = tariff per unit. State the currency quotation before interpreting an exchange-rate change. Diagram labels identify positions within each figure.
Revision route: formula index p. 87 · diagram index p. 89 · key distinctions p. 90