📈 Economics · AS 91223 · 2.2

International trade

External 4 credits Exchange rates Appreciation & depreciation Exports & imports Balance of payments

Two strands every year: exchange rates (what moves the NZD, and the full appreciation/depreciation chains) and trade (why NZ trades, the balance of payments). Answer in arrow chains — the markers are looking for the links.

Reference sheet →

Practice

Recall it first, then use it — testing yourself builds the memory, where rereading the notes above only feels easier.

Recall and application shuffled together — you have to work out what each item wants before you can answer it, which is the part the exam actually tests. Both kinds feed the same spacing schedule, so anything you miss comes back sooner.

Say the answer out loud before flipping — that attempt is where the learning happens, even when you get it wrong.

Exam-style only. Instant feedback, shuffled each attempt, best score saved on this device.

What actually comes up

Three questions every year, using three distinct graph models in a rotating order: the price-taker model, the two-country model, and the market-for-the-NZ$ exchange rate graph. Every "compare and contrast" part explicitly names the two groups to compare — read them off carefully, since the pairing changes every year (producers vs consumers, one industry's workers vs another's, tourists vs importers).

Across 3 years

9 questions · 38 parts 16 Achieved 13 Merit 9 Excellence

The pattern — what to prepare

Topic	Appears in	Grade level	What to practise
The price-taker model — a horizontal world price, with an export or import gap read off the domestic curves	3/3 years	A–E	"The price-taker model" — the section this checklist added, since none of the three graph models were previously taught here.
The two-country model — two side-by-side S/D graphs settling at one trade price	3/3 years	A–E	"The two-country model" — relabel BOTH countries' graphs when only one side's demand or supply shifts.
The market-for-the-NZ$ graph, always tied to a real exports-or-imports change	3/3 years	A–M	"Exchange-rate movements" — exports create DEMAND for NZD; imports create SUPPLY of NZD.
A "compare and contrast" naming two specific, different groups — never the same group twice	3/3 years, always the Excellence part of at least one question	E	Read the two named groups carefully — the pairing (producers vs consumers, one industry vs another, tourists vs importers) changes every year.
A government-protection method (tariff, quota, subsidy) and a reason government is unlikely to use it	2023 confirmed, and recurring across the wider question index	M–E	"Government intervention: tariffs, and why protection is often avoided" — trace the full mechanism through to the producer outcome, not just "it raises the price".
A growing export industry's effect on RESOURCE ALLOCATION between it and another named industry, not just its own success	2024 confirmed	E	"Trade's effect on resource allocation" — name the specific resource cost to the OTHER industry, not just the growing industry's gain.
A compare-and-contrast pair where BOTH groups move in the SAME direction, not opposite ones	2023, 2025 confirmed	E	"Applying compare and contrast" — do not force an artificial winner/loser split when the true answer is both groups affected the same way.
A reason NZ trades much less with one country than another, tied to specific market/agreement factors	2024 confirmed	A	"Reading the notation" — name a specific factor (distance, agreement status, market size) rather than a vague "they are different economies".

2025 Oranges from Peru, a kiwifruit harvest, and exports to the USA 13 parts

The 2025 paper ↗ Marking schedule ↗

Question One — The two-country model

NZ trades oranges with Peru under the CPTPP free trade agreement.

a Explain why New Zealand exports some types of fruit and imports other types. Achieved
b On Graph One, label the trade price (Pt) and the export/import amounts (X and M) for NZ and Peru. Achieved
c Explain the impact of the orange trade on the quantity purchased and total spending by NZ consumers, referring to Graph One. Merit
d Compare and contrast the impact of the CPTPP free trade agreement with Peru on growers of different types of fruit in New Zealand. Excellence

Question Two — The price-taker model

NZ kiwifruit exports, with an improved 2024 harvest following a meagre 2023.

a Explain why the world price in the price-taker model is shown as a horizontal line. Achieved
b On Graph Two, show the effect of the improved 2024 harvest on kiwifruit exports (new supply curve S2024, new export level X1). Achieved
c Explain how the improved harvest impacts NZ consumers' spending on kiwifruit, referring to Graph Two. Merit
d Explain the impact of the improved harvest on the current account balance, referring to Graph Two. Merit
e Compare and contrast the impact of the improved harvest on kiwifruit growers and on workers who pick kiwifruit, referring to Graph Two. Excellence

Question Three — Trade and the exchange rate

NZ trade with the USA; increased exports and, separately, increased imports.

a Apart from the USA and Australia, name a top-five country NZ exports to and imports from. Achieved
b On Graph Three, show and explain the effect of increased exports to the USA on the NZ$ exchange rate. Merit
c On Graph Four, show and explain the effect of increased imports from the USA on the NZ$ exchange rate. Merit
d Compare and contrast the impact of a depreciation of the NZ$ on NZ tourists visiting the USA and on NZ businesses importing consumer products from the USA. Excellence

2024 A lower world lamb price, wood products to India, and an India trade deal 13 parts

The 2024 paper ↗ Marking schedule ↗

Question One — Price-taker model

The world price of lamb falls.

a On Graph One, show the impact of the lower world price of lamb on exports, labelling the new export level X1. Achieved
b Referring to Graph One, explain how the lower world price affects the quantity of NZ lamb exports. Achieved
c Referring to Graph One, explain how the lower world price affects export receipts. Merit
d Compare and contrast the impact of the lower world price on NZ producers and NZ consumers of lamb, referring to Graph One. Excellence

Question Two — The two-country model

NZ's two-way trade with India is much smaller than with China; wood products are traded between NZ and India.

a Explain one possible reason why NZ's two-way trade with India is much less than with China. Achieved
b On Graph Two, label the trade price (Pt) and the export/import amounts (X and M) for NZ and India. Achieved
c Referring to Graph Two, explain the impact of exporting wood products on revenue for NZ wood producers, and on the current account balance. Merit
d Explain how exporting wood products to India may impact resource allocation between the NZ wood industry and other agricultural export industries. Excellence

Question Three — Free trade agreements and the exchange rate

An "Early Harvest" trade deal with India could significantly increase NZ exports, affecting businesses trading with India.

a Identify one country NZ has a free trade agreement with. Achieved
b Explain how a tariff on NZ dairy exports protects India's dairy producers. Achieved
c On Graph Three, show the impact on the exchange rate of a large increase in exports to India. Merit
d Explain the impact on the exchange rate of a large increase in NZ's exports to India, referring to Graph Three. Merit
e Compare and contrast the impact of the exchange rate change on a business importing Indian food and a business running guided tours of India for NZ tourists. Excellence

2023 Bananas, grass-fed beef to the USA, and imports of machinery 12 parts

The 2023 paper ↗ Marking schedule ↗

Question One — Price-taker model and protecting domestic producers

NZ is a price taker in the banana market; the world price of bananas has risen due to labour shortages and disease.

a Explain why New Zealand imports bananas. Achieved
b On Graph One, show the impact of a higher world price for bananas on imports, labelling the new import level M1. Achieved
c Referring to Graph One, explain the impact of the higher world price on the level of imports and revenue for NZ banana growers. Merit
d Give a method the Government could use to protect local banana growers, and explain how it would encourage domestic production. Merit
e Explain one reason why the NZ Government is unlikely to protect local banana growers. Excellence

Question Two — The two-country model

NZ (mostly grass-fed) and the USA (mostly grain-fed) both produce beef; US demand for grass-fed beef is growing for health and environmental reasons.

a On Graph Two, show the impact of increased US demand for grass-fed beef, labelling the new export level X1 and import level M1. Achieved
b Referring to Graph Two, explain the impact of increased US demand on the level of exports and export receipts for NZ grass-fed beef. Merit
c Compare and contrast the impact of the higher US demand on NZ households that consume beef and NZ households with workers in beef production. Excellence

Question Three — The exchange rate

NZ imports machinery from the USA, among its top imported goods.

a Apart from machinery, identify one of NZ's top five imported goods. Achieved
b On Graph Three, show the impact on the exchange rate of a large increase in NZ imports of machinery from the USA. Achieved
c Explain the impact on the exchange rate of a large increase in NZ's imports, referring to Graph Three. Merit
d Compare and contrast the impact of this exchange rate change on (i) NZ tourism businesses vs NZ businesses importing US consumer goods, and (ii) NZ dairy-farming households vs households buying a new US car. Excellence

Grades above are read from each year's own Achievement/Merit/Excellence evidence statement, condensed to the actual task — the schedules also grade holistically per question on a 0–8 scale, not a fixed mark per bullet.

Past exams & resources

Past exams & marking schedules, AS 91223 (last 5 years)
Year	Exam paper	Marking schedule
2025	Exam paper	Marking schedule
2024	Exam paper	Marking schedule
2023	Exam paper	Marking schedule
2022	Exam paper	Marking schedule
2021	Exam paper	Marking schedule

⏱ Timed opens the paper and starts a countdown matching the exam length. Official NZQA PDFs. If a link 404s, that year’s paper may sit under a slightly different code: browse the NZQA subject page.

NZQA 91223 exams & schedules Exchange-rate chains appear in every paper