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The Influence of Global Trade Agreements on Local Industries: An IELTS Writing Task 2 Guide

global trade agreement impact

global trade agreement impact

In recent years, the topic of global trade agreements and their influence on local industries has frequently appeared in IELTS Writing Task 2. Students must understand its dynamics and current trends to respond effectively. This article provides a comprehensive guide, including sample essay topics, detailed analysis, vocabulary, and key strategies for answering such questions.

Sample Essay Topics

To help you prepare, here are some possible essay topics related to global trade agreements and local industries:

  1. “Discuss the positive and negative impacts of global trade agreements on local industries. Provide examples to support your answer.”
  2. “To what extent do you agree or disagree with the statement: ‘Global trade agreements are beneficial for local industries’? Use relevant examples.”
  3. “Analyze the ways global trade agreements can both help and hinder local industries. Include specific examples.”

Selected Essay Topic: Discuss the positive and negative impacts of global trade agreements on local industries. Provide examples to support your answer.

Analyzing the Essay Topic

To respond appropriately, you need to:

  1. Understand the keywords: Global trade agreements, positive and negative impacts, local industries.
  2. Plan your essay structure: Introduction, body paragraphs (covering both positive and negative impacts), conclusion.
  3. Identify relevant examples to support your arguments.

Sample Essay:

Introduction:

Global trade agreements, such as NAFTA and the European Union’s Customs Union, play a significant role in shaping the economic landscape of local industries. While these agreements aim to foster economic cooperation and increase market access, their influence on local industries can be both advantageous and detrimental. This essay will discuss the positive and negative impacts of global trade agreements on local industries, supported by relevant examples.

Body Paragraph 1: Positive Impacts

Firstly, global trade agreements often lead to increased market access for local industries. By reducing tariffs and trade barriers, these agreements enable local companies to expand their markets beyond domestic borders. For instance, the North American Free Trade Agreement (NAFTA) allowed Canadian automotive manufacturers to export goods to the United States and Mexico without facing high tariffs, thereby increasing their sales and profitability. Additionally, trade agreements can stimulate innovation and competition. Exposure to a broader market compels local industries to improve their products and services to remain competitive, ultimately benefiting consumers.

global trade agreement impact

Body Paragraph 2: Negative Impacts

On the other hand, global trade agreements can also pose significant challenges to local industries. The influx of foreign competitors into domestic markets can threaten the survival of local businesses, especially smaller enterprises that may lack the resources to compete. For example, after the implementation of the Trans-Pacific Partnership (TPP), many small-scale Australian dairy farmers struggled to compete with large-scale American producers, leading to decreased market share and financial difficulties. Moreover, reliance on foreign markets can make local industries vulnerable to global economic fluctuations, as seen during the 2008 financial crisis when many export-dependent industries faced severe downturns.

Conclusion:

In conclusion, while global trade agreements can provide substantial benefits to local industries by promoting market expansion and innovation, they also bring about significant challenges, including increased competition and vulnerability to economic downturns. Policymakers must carefully balance these impacts to ensure that the benefits of global trade are maximized while mitigating the adverse effects on local industries.

Word count: 305

Key Points for Writing

Vocabulary and Grammar:

Suggested Vocabulary:

  1. Customs Union (n) [ˈkʌstəmz ˈjuːniən]: a group of countries that have agreed to charge the same import duties and usually to allow free trade between themselves.
  2. Tariff (n) [ˈtærɪf]: a tax imposed on imported goods and services.
  3. Market Access (n) [ˈmɑːrkət ˈækses]: the ability of a company or country to sell goods and services across borders.
  4. Profitability (n) [ˌprɒfɪtəˈbɪləti]: the degree to which a business or activity yields profit.
  5. Innovation (n) [ˌɪnəˈveɪʃn]: the introduction of new ideas, products, or methods.
  6. Influx (n) [ˈɪnflʌks]: the arrival or incoming of a large number of people or things.
  7. Competitor (n) [kəmˈpetɪtə(r)]: a person, team, company, etc., that competes against others.
  8. Financial Crisis (n) [faɪˈnænʃl ˈkraɪsɪs]: a situation in which the value of financial institutions or assets drops rapidly.
  9. Mitigate (v) [ˈmɪtɪɡeɪt]: to make something less severe, serious, or painful.
  10. Vulnerability (n) [ˌvʌlnərəˈbɪləti]: the quality of being easily hurt or attacked.

Conclusion:

Understanding the influence of global trade agreements on local industries is crucial for success in IELTS Writing Task 2. This topic, though complex, can be tackled effectively with a clear structure, relevant examples, and advanced vocabulary. Keep practicing with various questions to enhance your writing skills and be well-prepared for the IELTS exam.

Additional Practice Topics:

  1. “Evaluate the role of global trade agreements in promoting economic growth in emerging markets.”
  2. “How do global trade agreements affect employment in local industries? Discuss with examples.”
  3. “Do the benefits of global trade agreements outweigh the disadvantages for local industries? Provide a balanced analysis.”
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