The principles of Economics touch our daily lives and do so differently depending where we live in the world. Because different countries have different economic systems, the way our limited resources are allocated is also dependent upon the political climate. The basis of the study of Economics will explain how the forces of demand and supply (the free market) decide on the quantity and price of the goods we purchase. However, governments also need to take a role because of market failure. For example, the pollution of the environment through high production levels has caused major issues of air pollution in China and India especially. Crucial to the study is the concept of globalisation as this has meant that each country is more integrated into a global economic system; the exploration of the reasons and implications of increased international trade is essential for us to understand the world in which we now live. It is because of this and the fact that Universities value Economics A Level in many combinations that has increased the popularity of this subject.
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