Its funny, i finally finished my A levels last week and know that i will never use any of the knowledge that i learnt for them. What i can be sure though, is that i will use the economic theory which i learnt many times over. Not only is this because i will be taking a degree which is predominantly economics based but also because my economic knowledge can be applied to almost every real life scenario which occurs.
Take this article which ive just read, http://www.bbc.co.uk/news/uk-politics-13918113
Now if i were sitting in an economics lesson there would be several points which we would already have picked up on.
The first is that, as the title of the article suggests, China could prove an invaluable market for UK exports which could stimulate economic growth, employment and the revival of UK industries which were previously in decline. "Up to £1 billion worth of business deals are expected to be announced during Mr. Wen's 3 day tour". This increase in trade could help prevent the UK from slipping into a much feared double-dip recession, which is looking ever more likely if you listen to small firms at present.
The second point is that this article demonstrates the impact of globalisation in the world. Economies have become integrated through increased trade and multi-national corporations taking advantage of economies of scale and this can be seen in the article as China's leading automaker has bought out MG Rover and is continuing to build cars at the Longbridge factory.
The final point links in with the second and comes under the title of comparative advantage. The chinese show a comparative advantage (i.e. can produce goods with the lowest opportunity cost) in manufacturing car parts whilst the UK shows a comparative advantage in assembling the car from the parts. Globalisation has allowed this comparative advantages to be exploited which will benefit both the chinese and british economies.
At least ome of my A levels has proven useful then...
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