Exchange rates and their impact on global trade is a topic that frequently appears in IELTS Writing Task 2 exams. Based on analysis of past exam trends and expert predictions, this subject is likely to continue being a popular choice for future tests. Let’s explore a relevant question that has appeared in recent IELTS exams and analyze sample responses for different band scores.
Some people think that governments should spend money on international trade and globalization. Others believe that it is better to spend money on local businesses and products. Discuss both views and give your opinion.
Analyzing the Question
This question touches on the broader theme of exchange rates and global trade by asking about government spending priorities. It requires candidates to:
- Discuss the benefits of investing in international trade and globalization
- Explore the advantages of supporting local businesses and products
- Provide a balanced argument and personal opinion
Now, let’s examine sample essays for different band scores, starting with a high-scoring response.
Sample Essay 1 (Band 8-9)
In today’s interconnected world, governments face the challenge of allocating resources between promoting international trade and supporting local economies. While both approaches have merits, I believe a balanced strategy that combines global engagement with local development is most beneficial.
Proponents of international trade argue that globalization brings numerous economic advantages. Increased access to global markets can boost exports, creating jobs and driving economic growth. Moreover, participation in the global economy can attract foreign investment, introduce new technologies, and foster innovation. For instance, countries like Singapore and South Korea have achieved remarkable economic success by embracing international trade and positioning themselves as global hubs.
On the other hand, advocates for local businesses emphasize the importance of nurturing domestic industries and preserving cultural identity. Investing in local products can create a more resilient economy, less vulnerable to global fluctuations. It can also help maintain traditional skills and industries that contribute to a nation’s unique character. Furthermore, supporting local businesses often leads to stronger communities and more equitable wealth distribution.
In my opinion, the most effective approach is to strike a balance between these two strategies. Governments should invest in infrastructure and policies that facilitate international trade, such as efficient ports and favorable trade agreements. Simultaneously, they should implement programs to support local businesses, such as grants for small enterprises and initiatives to promote locally-made products.
This balanced approach can be seen in countries like Germany, where a strong export-oriented economy coexists with robust support for local industries, particularly small and medium-sized enterprises. By fostering both global competitiveness and local resilience, governments can create a more sustainable and inclusive economic model.
In conclusion, while the debate between global trade and local support is often presented as a dichotomy, the most effective policy combines elements of both. By carefully balancing investments in international trade and local businesses, governments can harness the benefits of globalization while preserving the unique strengths of their domestic economies.
(Word count: 309)
Explanation of Band 8-9 Score
This essay demonstrates several qualities that contribute to a high band score:
- Task Achievement: The essay fully addresses all parts of the task, discussing both views and providing a clear opinion.
- Coherence and Cohesion: Ideas are logically organized with clear progression throughout the essay. Paragraphs are well-linked with appropriate cohesive devices.
- Lexical Resource: A wide range of vocabulary is used accurately and appropriately, including topic-specific terms like “globalization,” “foreign investment,” and “domestic industries.”
- Grammatical Range and Accuracy: The essay uses a variety of complex sentence structures with a high degree of accuracy. There is good control of grammar and punctuation throughout.
- Development of Ideas: Each main point is well-developed with relevant examples and explanations, demonstrating a sophisticated approach to the topic.
Sample Essay 2 (Band 6-7)
In the modern world, governments have to decide whether to spend money on international trade or local businesses. Both options have their advantages and disadvantages.
Those who support international trade say it’s good for the economy. When countries trade with each other, they can sell more products and make more money. This can create jobs and help the country grow. Also, when we buy things from other countries, we can get better prices and more choices. For example, many countries have benefited from selling their goods to other nations.
On the other hand, some people think it’s better to support local businesses. They say this helps keep money in the community and protects local jobs. Local businesses often use traditional methods and materials, which can be important for a country’s culture. Additionally, when we buy local products, we know where they come from and how they’re made.
In my opinion, both international trade and local businesses are important. Governments should try to support both. They could help local companies to sell their products to other countries, while also protecting small businesses at home. This way, the country can benefit from global trade without losing its local identity.
For instance, a government could invest in improving ports and airports to make international trade easier. At the same time, they could give grants or tax breaks to small local businesses to help them compete.
In conclusion, I believe the best approach is to find a balance between international trade and supporting local businesses. This can help countries grow economically while still maintaining their unique cultures and traditions.
(Word count: 267)
Explanation of Band 6-7 Score
This essay demonstrates characteristics typical of a Band 6-7 response:
- Task Achievement: The essay addresses all parts of the task, presenting both views and offering an opinion. However, the ideas could be more fully developed.
- Coherence and Cohesion: The essay is generally well-organized with clear progression of ideas. Basic cohesive devices are used, though not always with full flexibility.
- Lexical Resource: There is a sufficient range of vocabulary, with some attempts at less common words. However, the language use is less precise and sophisticated compared to the Band 8-9 essay.
- Grammatical Range and Accuracy: A mix of simple and complex sentence structures is used, with generally good control. There are occasional errors, but they do not impede communication.
- Development of Ideas: Main ideas are relevant and supported, though the level of detail and explanation is less thorough than in a higher band essay.
How global migration affects cultural diversity is another important aspect to consider when discussing the impacts of globalization and international trade. This interconnectedness not only influences economies but also shapes societies and cultures worldwide.
Key Vocabulary to Remember
- Globalization (noun) – /ˌɡləʊbəlaɪˈzeɪʃən/ – the process by which businesses or other organizations develop international influence or start operating on an international scale
- Resilient (adjective) – /rɪˈzɪliənt/ – able to withstand or recover quickly from difficult conditions
- Dichotomy (noun) – /daɪˈkɒtəmi/ – a division or contrast between two things that are or are represented as being opposed or entirely different
- Nurture (verb) – /ˈnɜːtʃə(r)/ – care for and encourage the growth or development of
- Infrastructure (noun) – /ˈɪnfrəstrʌktʃə(r)/ – the basic physical and organizational structures and facilities needed for the operation of a society or enterprise
- Fluctuation (noun) – /ˌflʌktʃuˈeɪʃn/ – an irregular rising and falling in number or amount; a variation
- Coexist (verb) – /ˌkəʊɪɡˈzɪst/ – exist at the same time or in the same place
- Competitive (adjective) – /kəmˈpetətɪv/ – as good as or better than others of a comparable nature
- Sustainable (adjective) – /səˈsteɪnəbl/ – able to be maintained at a certain rate or level
- Inclusive (adjective) – /ɪnˈkluːsɪv/ – including all the services or items normally expected or required
Conclusion
The Influence Of Exchange Rates On Global Trade is a complex and multifaceted topic that frequently appears in IELTS Writing Task 2. By understanding the key issues and practicing with sample essays like those provided, you can improve your ability to address this subject effectively in your exam.
To further enhance your skills, consider practicing with related topics such as the role of globalization in promoting economic development or the impact of cultural exchange programs on international relations. These themes often intersect with discussions on exchange rates and global trade, providing a broader perspective on international economic interactions.
We encourage you to write your own essay on the topic discussed in this article and share it in the comments section below. This practice will help you refine your writing skills and receive valuable feedback from others preparing for the IELTS exam.