Global economic policies and their impact on stock exchanges have become increasingly relevant in recent years, making it a potential topic for IELTS Writing Task 2. This subject has appeared in various forms in past exams and is likely to continue being a significant theme in future tests. Based on our analysis of previous IELTS questions, we’ve identified a relevant prompt that closely aligns with this topic:
Some people believe that governments should invest in international trade and global economic policies, while others think they should focus on domestic economic issues. Discuss both views and give your opinion.
Let’s analyze this question and provide sample essays for different band scores.
Question Analysis
This question requires you to discuss two contrasting viewpoints:
- Governments should invest in international trade and global economic policies
- Governments should focus on domestic economic issues
You need to explore both perspectives and then present your own opinion. This is a classic example of a discussion essay, where you’re expected to provide a balanced argument before reaching a conclusion.
Sample Essay 1 (Band 8-9)
International trade and domestic economic policies are both crucial aspects of a nation’s economic strategy. While some argue that governments should prioritize global economic engagement, others believe the focus should be on internal economic matters. In my opinion, a balanced approach that addresses both international and domestic concerns is essential for sustainable economic growth.
Proponents of international trade and global economic policies argue that in our increasingly interconnected world, no country can afford to isolate itself economically. Effects of economic globalization on stock markets can be profound, often leading to increased foreign investment and economic growth. For instance, China’s economic boom in recent decades can be largely attributed to its policy of opening up to global trade. This approach not only boosted its GDP but also significantly improved living standards for millions of its citizens.
On the other hand, those who advocate for a focus on domestic economic issues argue that a country’s primary responsibility is to its own citizens. They contend that addressing internal challenges such as unemployment, income inequality, and infrastructural development should take precedence over international economic endeavors. The rationale is that a strong domestic economy forms the foundation for successful participation in the global market. For example, Nordic countries like Sweden and Denmark have built robust welfare systems and strong domestic economies, which have enabled them to compete effectively on the international stage.
In my view, the most effective approach is to strike a balance between these two perspectives. Governments should aim to integrate their economies into the global market while simultaneously strengthening their domestic economic foundations. This dual focus can create a synergistic effect, where international trade boosts economic growth, providing resources for domestic development, which in turn enhances the country’s competitiveness in the global market.
Japan’s post-war economic strategy serves as an excellent example of this balanced approach. The country focused on rebuilding its domestic industries while gradually opening up to international trade. This strategy allowed Japan to become an economic powerhouse, benefiting from global trade while maintaining a strong domestic economy.
In conclusion, while the debate between prioritizing international or domestic economic policies is ongoing, I believe that a nuanced approach addressing both aspects is crucial. By carefully balancing global economic engagement with domestic economic development, countries can create resilient economies capable of thriving in our interconnected world.
(Word count: 395)
Global economic policies affecting stock exchanges
Essay 1 Analysis (Band 8-9)
This essay demonstrates several key features that contribute to its high band score:
Task Achievement: The essay fully addresses all parts of the task, discussing both viewpoints and clearly stating the writer’s opinion.
Coherence and Cohesion: The essay is well-organized with clear paragraphing. Each paragraph focuses on a specific idea, and there are appropriate linking words and phrases throughout.
Lexical Resource: The essay uses a wide range of vocabulary accurately and appropriately. Complex phrases like “interconnected world,” “economic boom,” and “synergistic effect” demonstrate a high level of language proficiency.
Grammatical Range and Accuracy: The essay showcases a variety of complex sentence structures with a high degree of accuracy. It uses different tenses and grammatical structures appropriately.
Examples: The essay provides relevant and specific examples to support its arguments, such as China’s economic growth and Japan’s post-war strategy.
Balance: The essay presents a balanced view of both perspectives before offering a nuanced opinion that combines elements of both viewpoints.
Conclusion: The conclusion effectively summarizes the main points and restates the writer’s opinion.
Sample Essay 2 (Band 6-7)
In today’s world, governments have to decide whether to focus on international trade and global economic policies or concentrate on domestic economic issues. Both approaches have their advantages and disadvantages. In this essay, I will discuss both views and give my opinion.
Some people think that governments should invest in international trade and global economic policies. They believe that this can bring many benefits to a country. For example, international trade can help a country sell its products to other countries, which can increase its income. Also, being part of the global economy can attract foreign investment, which can create jobs and improve the economy. Countries like Singapore have become rich by focusing on international trade.
On the other hand, others argue that governments should focus on domestic economic issues. They say that a country’s first responsibility is to take care of its own people. This means dealing with problems like unemployment, poverty, and improving education and healthcare. They believe that if a country has a strong domestic economy, it will be better prepared to compete in the global market. For instance, countries like Germany have strong domestic economies that help them succeed in international trade.
In my opinion, both international and domestic economic policies are important, and governments should try to balance them. I think that countries need to participate in the global economy to grow and develop. However, they also need to make sure that their own citizens benefit from this growth. A good approach would be to use the profits from international trade to improve domestic conditions.
To conclude, while some people prefer international economic policies and others favor domestic ones, I believe that a combination of both is the best strategy. Governments should aim to engage in global trade while also addressing internal economic issues to ensure the overall well-being of their nations.
(Word count: 309)
Essay 2 Analysis (Band 6-7)
This essay demonstrates several features that place it in the Band 6-7 range:
Task Achievement: The essay addresses all parts of the task, discussing both viewpoints and providing an opinion. However, the ideas could be developed more fully.
Coherence and Cohesion: The essay has a clear structure with introduction, body paragraphs, and conclusion. There are some linking words, but their use could be more sophisticated.
Lexical Resource: The essay uses a reasonable range of vocabulary related to the topic. However, there is less precision and sophistication compared to the Band 8-9 essay.
Grammatical Range and Accuracy: The essay uses a mix of simple and complex sentences with generally good control. There are fewer complex structures compared to the higher band essay.
Examples: The essay provides some examples, but they are less detailed and specific compared to the Band 8-9 essay.
Balance: The essay presents both viewpoints and offers an opinion that combines elements of both, but the discussion is less nuanced than in the higher band essay.
Conclusion: The conclusion summarizes the main points and restates the writer’s opinion, but it could be more sophisticated.
Balancing domestic and international economic policies
Key Vocabulary to Remember
Economic policy (noun) – /ˌiːkəˈnɒmɪk ˈpɒləsi/ – A course or principle of action adopted or proposed by a government, party, business, or individual.
Global market (noun) – /ˈɡləʊbl ˈmɑːkɪt/ – The worldwide marketplace for goods and services.
Domestic economy (noun) – /dəˈmestɪk iˈkɒnəmi/ – The economic system within a country’s borders.
International trade (noun) – /ˌɪntəˈnæʃnəl treɪd/ – The exchange of capital, goods, and services across international borders or territories.
Foreign investment (noun) – /ˈfɒrɪn ɪnˈvestmənt/ – The investment of capital in a country other than the investor’s home country.
Economic growth (noun) – /ˌiːkəˈnɒmɪk ɡrəʊθ/ – An increase in the amount of goods and services produced per head of the population over a period of time.
Synergistic effect (noun) – /ˌsɪnəˈdʒɪstɪk ɪˈfekt/ – The interaction of two or more agents or forces so that their combined effect is greater than the sum of their individual effects.
Infrastructural development (noun) – /ˌɪnfrəˈstrʌktʃərəl dɪˈveləpmənt/ – The process of improving the basic physical systems of a business or nation.
Income inequality (noun) – /ˈɪnkʌm ˌɪnɪˈkwɒləti/ – The extent to which income is distributed in an uneven manner among a population.
Economic strategy (noun) – /ˌiːkəˈnɒmɪk ˈstrætədʒi/ – A plan of action designed to achieve a long-term or overall economic aim.
Conclusion
The impact of global economic policies on stock exchanges is a complex and relevant topic for IELTS Writing Task 2. As we’ve seen from the sample essays, this subject allows for a nuanced discussion of international versus domestic economic priorities. To prepare for similar questions, consider practicing with these related topics:
- The effects of globalization on local economies
- The role of international organizations in shaping economic policies
- The balance between economic growth and environmental protection
- The impact of technological advancements on global trade
Remember, the key to success in IELTS Writing Task 2 is to fully address the question, provide relevant examples, and express your ideas clearly and coherently. Practice writing essays on these topics and don’t hesitate to share your attempts in the comments section below for feedback and further improvement.