Global trade agreements and their influence on financial markets have become increasingly prevalent topics in IELTS Writing Task 2 essays. Based on trends observed in past exams and the growing importance of international trade in the global economy, this subject is likely to appear more frequently in future tests. Let’s explore a sample question and provide model essays for different band scores to help you prepare effectively.
Some people believe that global trade agreements have a positive impact on financial markets, while others argue that they can lead to economic instability. Discuss both views and give your own opinion.
Analysis of the Question
This question requires candidates to:
- Discuss the positive impacts of global trade agreements on financial markets
- Explore the potential negative effects, particularly economic instability
- Provide a balanced argument considering both perspectives
- Present and justify their own opinion on the matter
Now, let’s examine three sample essays of varying quality, targeting different band scores.
Band 8-9 Sample Essay
Global trade agreements have become a cornerstone of international economic relations, significantly influencing financial markets worldwide. While proponents argue that these agreements foster economic growth and stability, critics contend that they may lead to financial volatility. This essay will examine both perspectives before presenting my own viewpoint on this complex issue.
On one hand, supporters of global trade agreements assert that they have a positive impact on financial markets. By reducing trade barriers and promoting free trade, these agreements can stimulate economic growth, increase foreign investment, and enhance market liquidity. For instance, the North American Free Trade Agreement (NAFTA) led to a substantial increase in cross-border investments and trade volumes among member countries, contributing to the overall stability and growth of their financial markets. Moreover, these agreements often include provisions for financial sector cooperation, which can lead to the harmonization of regulations and improved risk management practices across borders.
On the other hand, critics argue that global trade agreements can potentially destabilize economies and financial markets. They contend that increased economic interdependence can amplify the risk of contagion during financial crises, as evidenced by the rapid spread of the 2008 global financial crisis. Furthermore, some argue that these agreements may exacerbate income inequality within countries, leading to social unrest and economic instability. For example, the outsourcing of jobs to countries with lower labor costs can result in unemployment and wage stagnation in developed economies, potentially affecting consumer spending and market performance.
In my opinion, while global trade agreements do pose certain risks, their overall impact on financial markets is largely positive. The benefits of increased trade, investment, and economic cooperation typically outweigh the potential drawbacks. However, it is crucial to implement these agreements with careful consideration of their broader economic and social implications. Policymakers should focus on creating robust regulatory frameworks and safety nets to mitigate the risks associated with increased economic integration.
In conclusion, global trade agreements have a complex and multifaceted impact on financial markets. While they can contribute to economic growth and market stability, they also carry potential risks. Striking a balance between the benefits of free trade and the need for economic stability is essential for maximizing the positive effects of these agreements on financial markets and the broader economy.
(Word count: 377)
Band 6-7 Sample Essay
Global trade agreements have become an important topic in today’s world economy. Some people think they are good for financial markets, while others worry about their negative effects. This essay will look at both sides of this issue and give my opinion.
People who support global trade agreements say they help financial markets in many ways. Firstly, these agreements make it easier for companies to do business in different countries. This can lead to more investment and economic growth. For example, when countries sign trade agreements, their stock markets often go up because investors expect more business opportunities. Also, trade agreements can make currencies more stable, which is good for financial markets.
However, there are also arguments against global trade agreements. Some people worry that these agreements can cause problems for local businesses that can’t compete with big international companies. This could lead to job losses and economic problems in some areas. Another concern is that if one country has financial troubles, it could spread to other countries more easily because of these agreements. This happened during the 2008 financial crisis, which affected many countries around the world.
In my opinion, global trade agreements are generally good for financial markets, but we need to be careful about how we implement them. The benefits of increased trade and investment are important for economic growth. However, governments should also have plans to help workers and businesses that might be negatively affected by these agreements. They should also work together to create rules that can prevent financial problems from spreading between countries.
To conclude, global trade agreements have both positive and negative effects on financial markets. While they can bring many benefits, it’s important to manage the risks carefully. By doing this, we can make sure that these agreements help to create stable and growing financial markets around the world.
(Word count: 309)
Band 5-6 Sample Essay
Global trade agreements are very important in today’s world. Some people think they are good for money markets, but others think they can cause problems. I will talk about both ideas and give my opinion.
First, many people say trade agreements are good. They help companies sell things in other countries easily. This can make more money and jobs. When countries sign these agreements, their stock markets often go up. This is because people think business will be better. Also, these agreements can make money exchange between countries more stable.
But some people don’t like trade agreements. They worry that big companies from other countries will come and take jobs away from local people. This can make some people lose their jobs and cause problems in the country. Also, if one country has money problems, it might spread to other countries faster because of these agreements. This happened in 2008 when many countries had money problems at the same time.
I think trade agreements are mostly good, but we need to be careful. They can help countries make more money and have better businesses. But governments should also help people who might lose their jobs because of these agreements. They should also make rules to stop money problems from spreading between countries.
In conclusion, trade agreements can be good and bad for money markets. We need to use them carefully to get the good things and avoid the bad things. This way, they can help make money markets better for everyone.
(Word count: 246)
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 response
- 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
- Provides well-organized ideas 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 with clear overall progression
- Uses cohesive devices, but not always appropriately
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 limited range of vocabulary; errors 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
- Makes inadequate, inaccurate or over-use of cohesive devices
Key Vocabulary to Remember
- Trade barriers (noun) – /treɪd ˈbæriəz/ – Restrictions on international trade, such as tariffs or quotas
- Economic interdependence (noun) – /ˌekəˈnɑːmɪk ˌɪntərdɪˈpendəns/ – The degree to which economies rely on each other
- Contagion (noun) – /kənˈteɪdʒən/ – The spread of an economic crisis from one country to another
- Outsourcing (noun) – /ˈaʊtˌsɔːrsɪŋ/ – The practice of obtaining goods or services from an outside supplier
- Regulatory framework (noun) – /ˈreɡjələtɔːri ˈfreɪmwɜːk/ – A system of regulations and guidelines governing a particular area
- Economic volatility (noun) – /ˌekəˈnɑːmɪk ˌvɒləˈtɪləti/ – Rapid and unpredictable changes in economic conditions
- Market liquidity (noun) – /ˈmɑːrkɪt lɪˈkwɪdəti/ – The degree to which an asset can be quickly bought or sold without affecting its price
- Income inequality (noun) – /ˈɪnkʌm ˌɪnɪˈkwɒləti/ – The extent to which income is distributed unevenly in a group of people
- Economic integration (noun) – /ˌekəˈnɑːmɪk ˌɪntɪˈɡreɪʃn/ – The process of unifying economic policies between different countries
- Financial sector cooperation (noun) – /faɪˈnænʃl ˈsektə kəʊˌɒpəˈreɪʃn/ – Collaboration between financial institutions or countries in financial matters
In conclusion, mastering essays on the impact of global trade agreements on financial markets requires a deep understanding of economic concepts and the ability to analyze complex relationships. By studying these sample essays and understanding the criteria for different band scores, you can improve your writing skills and prepare more effectively for the IELTS Writing Task 2.
To further enhance your preparation, consider practicing with similar topics such as the effects of global trade agreements on local agriculture or how global trade agreements affect small-scale industries. These related subjects will help you develop a broader perspective on global trade issues.
We encourage you to practice writing your own essay on this topic and share it in the comments section below. This active practice will help you refine your skills and receive valuable feedback from others preparing for the IELTS exam.
Remember, consistent practice and exposure to a variety of related topics will significantly improve your ability to tackle complex subjects like the importance of global trade for economic development in your IELTS Writing Task 2 essay. Good luck with your preparation!