The topic of How The Digital Economy Is Transforming Global Trade has become increasingly relevant in IELTS Writing Task 2 exams. Based on analysis of past exam trends and expert predictions, this subject is likely to appear more frequently in future tests. To help you prepare, we’ll examine a real IELTS question on this theme and provide sample essays for different band scores.
Some people think that the digital economy is having a positive effect on international trade, while others believe it is having a negative impact. Discuss both views and give your own opinion.
Analysis of the Question
This question requires candidates to:
- Discuss positive effects of the digital economy on international trade
- Discuss negative impacts of the digital economy on international trade
- Provide and justify their own opinion on the overall impact
Let’s examine three sample essays of varying quality to understand how to approach this topic effectively.
Sample Essay 1 (Band 8-9)
The digital revolution has undeniably transformed the landscape of global commerce, sparking debate about its overall impact on international trade. While some argue that the digital economy has positively influenced cross-border transactions, others contend that it has brought significant drawbacks. This essay will explore both perspectives before presenting my own viewpoint.
Proponents of the digital economy highlight its role in facilitating seamless international trade. E-commerce platforms and digital payment systems have dramatically reduced barriers to entry for businesses of all sizes, enabling them to access global markets with unprecedented ease. Moreover, the rise of digital services has created entirely new trade opportunities, from cloud computing to online education, allowing countries to diversify their exports beyond traditional goods. These developments have the potential to foster economic growth and innovation on a global scale.
How digital currencies could reshape global economies is another aspect worth considering. The emergence of cryptocurrencies and blockchain technology offers the promise of faster, more secure international transactions, potentially revolutionizing the way businesses conduct cross-border trade.
However, critics argue that the digital economy has also introduced new challenges to international trade. Cybersecurity threats and data privacy concerns have become major issues, potentially undermining trust in digital transactions and creating new trade barriers. Additionally, the dominance of large tech companies in the digital marketplace has raised concerns about monopolistic practices and unfair competition, potentially disadvantaging smaller businesses and developing economies.
The impact of digital currencies on global trade is not uniformly positive either. While they offer potential benefits, the volatility and regulatory uncertainties surrounding cryptocurrencies could introduce new risks to international trade.
In my opinion, while the digital economy presents certain challenges, its positive impact on international trade far outweighs the negatives. The unprecedented opportunities for global market access, increased efficiency in transactions, and potential for innovation in trade practices offer significant benefits to businesses and economies worldwide. However, it is crucial for governments and international organizations to collaborate in addressing the associated risks, such as cybersecurity threats and market dominance issues, to ensure that the benefits of the digital economy are equitably distributed.
In conclusion, the digital economy has fundamentally altered the dynamics of international trade, bringing both opportunities and challenges. By harnessing its potential while mitigating its risks, we can create a more inclusive and efficient global trading system that benefits all participants.
(Word count: 398)
Digital economy transforming global trade illustration
Sample Essay 2 (Band 6-7)
The digital economy has changed how international trade works. Some people think it’s good for global trade, while others say it’s bad. I will discuss both sides and give my opinion.
On the positive side, the digital economy has made it easier for companies to do business internationally. Online platforms allow small businesses to sell their products to customers all over the world. This was not possible before. Digital payments also make it faster and cheaper to send money across borders. These things help increase international trade.
However, there are also negative effects. Cybercrime is a big problem in the digital economy, and it can make international trade risky. Some countries might not want to trade online because they’re worried about hackers stealing their information. Also, big tech companies like Amazon and Alibaba have a lot of power in online trade, which might not be fair for smaller businesses.
Digital currencies transforming global financial systems is another important topic. While they can make international payments easier, they also bring new challenges for regulators and traditional financial institutions.
In my opinion, the digital economy has more positive than negative effects on international trade. It gives more opportunities for businesses to grow globally and makes trade faster and more efficient. But I think governments need to work together to solve problems like cybercrime and make sure the digital economy is fair for everyone.
To conclude, the digital economy has both good and bad impacts on international trade. Overall, I believe it’s beneficial, but we need to manage the risks carefully to make sure everyone can benefit from digital trade.
(Word count: 276)
Sample Essay 3 (Band 5-6)
Nowadays, digital economy is very important for international trade. Some people think it is good, but others think it is bad. I will talk about both sides and give my opinion.
First, digital economy is good for international trade. It makes it easy to buy and sell things online. Many companies can sell their products to other countries using internet. This is good for business. Also, people can pay easily using digital money. This helps international trade grow.
But some people think digital economy is bad for trade. They say it is not safe because of hackers. Some countries worry about their information being stolen online. This can make them not want to trade. Also, big companies like Amazon are very powerful in online trade. This might not be fair for small businesses.
Effects of digital economies on small businesses is an important consideration. While digital platforms offer new opportunities, they also present challenges for smaller enterprises trying to compete globally.
I think digital economy is mostly good for international trade. It helps many businesses sell things to other countries. But I agree there are some problems. Governments should try to make digital trade safer and fairer.
In conclusion, digital economy has good and bad effects on international trade. I believe the good things are more than the bad things. But we need to be careful and solve the problems to make digital trade better for everyone.
(Word count: 234)
Digital economy challenges and opportunities infographic
Explanation of Band Scores
Band 8-9 Essay:
- Fully addresses all parts of the task with a well-developed response
- Presents a clear position throughout the essay
- Uses a wide range of vocabulary with very natural and sophisticated control of lexical features
- Uses a wide range of structures with full flexibility and accuracy
- Ideas are coherently organized with clear progression throughout
- Uses cohesive devices effectively
Band 6-7 Essay:
- Addresses all parts of the task, though some parts may be more fully covered than others
- Presents a relevant position, although conclusions may become unclear or repetitive
- Uses an adequate range of vocabulary for the task, with some inaccuracies
- Uses a mix of simple and complex sentence forms
- Arranges information coherently and there is clear overall progression
- Uses cohesive devices effectively, but cohesion within and/or between sentences may be faulty or mechanical
Band 5-6 Essay:
- Addresses the task only partially; the format may be inappropriate in places
- Expresses a position but development is not always clear
- Uses a limited range of vocabulary, but this is minimally adequate for the task
- May make noticeable errors in spelling and/or word formation that may cause some difficulty for the reader
- Uses only a limited range of structures with only rare use of subordinate clauses
- Presents information with some organization but there may be a lack of overall progression
Key Vocabulary to Remember
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Digital economy (noun) /ˈdɪdʒɪtl ɪˈkɒnəmi/: The economic activity that results from billions of everyday online connections among people, businesses, devices, data, and processes.
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E-commerce (noun) /ˈiːkɒmɜːs/: Commercial transactions conducted electronically on the internet.
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Cybersecurity (noun) /ˌsaɪbəsɪˈkjʊərəti/: The state of being protected against the criminal or unauthorized use of electronic data, or the measures taken to achieve this.
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Cryptocurrency (noun) /ˈkrɪptəʊˌkʌrənsi/: A digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by a centralized authority.
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Blockchain (noun) /ˈblɒktʃeɪn/: A system in which a record of transactions made in bitcoin or another cryptocurrency are maintained across several computers that are linked in a peer-to-peer network.
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Global market access (noun phrase) /ˈɡləʊbl ˈmɑːkɪt ˈækses/: The ability of companies to sell their products or services in international markets.
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Cross-border transactions (noun phrase) /krɒs ˈbɔːdə trænˈzækʃnz/: Business deals or economic exchanges that occur between entities in different countries.
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Digital payment systems (noun phrase) /ˈdɪdʒɪtl ˈpeɪmənt ˈsɪstəmz/: Methods of making transactions or paying for goods and services through digital or electronic means.
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Data privacy (noun phrase) /ˈdeɪtə ˈprɪvəsi/: The aspect of information technology that deals with the ability an organization or individual has to determine what data in a computer system can be shared with third parties.
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Market dominance (noun phrase) /ˈmɑːkɪt ˈdɒmɪnəns/: The strength of a brand, product, service, or firm, relative to competitive offerings.
Conclusion
The digital economy’s impact on global trade is a complex and evolving topic that is likely to appear in future IELTS Writing Task 2 exams. To excel in such questions, it’s crucial to understand both the opportunities and challenges presented by digital technologies in international commerce. Practice writing essays on related topics such as:
- The role of artificial intelligence in international trade
- How blockchain technology could revolutionize global supply chains
- The impact of digital platforms on small businesses in developing countries
- Should governments regulate the use of digital currencies in international trade?
We encourage you to write your own essay on the question provided in this article and share it in the comments section below. This practice will help you refine your writing skills and prepare effectively for the IELTS Writing Task 2.
