1 / 92

The International Economy

The International Economy. Higher Economics Past Paper Questions Topic 1. The International Economy: Outcome 1. Reasons for international specialisation and exchange. 2012: QB5a – 8 marks. Describe the theories of Absolute and Comparative Advantage. 2009: QB6a – 7 marks.

pooky
Télécharger la présentation

The International Economy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The International Economy Higher Economics Past Paper Questions Topic 1

  2. The International Economy: Outcome 1 Reasons for international specialisation and exchange

  3. 2012: QB5a – 8 marks • Describe the theories of Absolute and Comparative Advantage.

  4. 2009: QB6a – 7 marks Cadbury has expanded production in Poland and has axed 700 manufacturing jobs in certain areas of the UK. These areas will experience a negative multiplier effect. • Explain why some UK firms might choose to expand production abroad rather than in the UK

  5. 2009: QB4b – 8 marks Despite the UK’s reluctance to join the Eurozone, a 2006 report stated that “Britain remained the favourite European destination for foreign investment projects”. • Explain why foreign firms might wish to locate in the UK.

  6. 2009: QB4b – 8 marks Despite the UK’s reluctance to join the Eurozone, a 2006 report stated that “Britain remained the favourite European destination for foreign investment projects”. • Explain the advantages and disadvantages for the UK economy of foreign direct investment.

  7. 2007: QA1f – 2 marks • Give one example of a good or service that can be produced more cheaply in India or China than in the UK and explain why it can be produced more cheaply there.

  8. 2007: QB1b – 8 marks • Explain the theories of absolute and comparative advantage.

  9. The International Economy: Outcome 1 FORMS, REASONS AND EFFECTS OF PROTECTION

  10. 2013: Qb5a – 5 marks • Describe the main economic benefits of free trade.

  11. 2013: Qb5a – 8 marks • Explain why some countries decide to impose restrictions on free trade.

  12. 2012: QA1f(i) – 2 marks • Draw a diagram to show how guaranteed minimum prices to cotton farmers in the USA can lead to the over production of cotton.

  13. 2012: QA1f(ii) – 4 marks • Suggest 2 trade barriers that can be used to reduce imports and explain how they would work.

  14. 2010: QB6a – 15 marks One argument used for imposing import controls on Chinese goods is that average production costs in the UK are higher than average production costs in China. • Describe some arguments for imposing import controls, other than cost differences. • Describe some arguments against imposing import controls.

  15. 2007: Qb1c – 12 marks • Argue the case for and against import controls.

  16. SQP: Qb6a – 8 marks Most economists would agree that free trade can benefit an economy. • Explain what is meant by free trade and describe some of the benefits it may bring to an economy.

  17. SQP: Qb6b(i) – 7 marks Most economists would agree that free trade can benefit an economy. • Suggest reasons why some countries may wish to restrict free trade.

  18. SQP: Qb6b(ii) – 6 marks Most economists would agree that free trade can benefit an economy. • Other than tariffs, explain some measures countries could use to restrict trade.

  19. The International Economy: Outcome 1 BALANCE OF PAYMENTS

  20. 2013: QB6B • Explain the reasons why the UK has a large “trade in goods deficit”. (5 marks) • Describe the components of the balance of payments accounts other than trade in goods. (6 marks)

  21. 2012: QB3c(ii) – 4 marks • Describe how a rise in the UK rate of inflation is likely to affect the Current Account of its Balance of Payments.

  22. 2011: QA1c • Explain what is meant by a “deficit on Trade in Goods”. (2 marks) • Explain one reason for the UK’s Trade in Goods being in deficit. (2 marks) • Explain one reason for the UK’s Trade in Services being in surplus. (2 marks)

  23. 2010: QA2h – 3 marks • Explain how a slowdown in the eurozone is likely to affect the UK Balance of Payments.

  24. 2009: QA1e – 4 marks • Explain how an increase in the price of timber is likely to affect: • The UK balance of trade • The exchange rate of sterling

  25. 2009: QA2f – 3 marks • Explain how an increase in the value of the yuan against the dollar is likely to affect the US balance of trade.

  26. 2009: QB5a – 9 marks In the second quarter of 2007, Scottish manufactured exports grew at their fastest rate for 5 years. • Describe the main components of the Balance of Payments, other than trade in goods.

  27. 2008: QB3a – 8 marks The slow down in the growth of UK National Income in 2005 was partly caused by the increased deficit on trade in goods and services. • Suggest and explain reasons why the UK usually has a deficit on trade in goods and services.

  28. 2008: QB3a – 8 marks The slow down in the growth of UK National Income in 2005 was partly caused by the increased deficit on trade in goods and services. • Explain, using a circular flow of income diagram, how a deficit on trade in goods and services can slow down the growth of National Income.

  29. 2008: QB3a – 9 marks The slow down in the growth of UK National Income in 2005 was partly caused by the increased deficit on trade in goods and services. • Suggest and explain measures the government could take to reduce deficits on trade in goods and services in the future.

  30. 2009: QB5a – 9 marks In the second quarter of 2007, Scottish manufactured exports grew at their fastest rate for 5 years. • Describe the main components of the Balance of Payments, other than trade in goods.

  31. 2007: QA1c(i) – 2 marks • Suggest and explain one reason for Britain’s large trade deficit.

  32. 2007: QA1c(iI) – 3 marks • Other than import controls, describe one measure Britain could take to reduce a trade deficit, and explain how it would work.

  33. SQP: QA2e – 3 marks • Suggest and explain one reason for the large deficits in the UK Current Account.

  34. The International Economy: Outcome 1 EXCHANGE RATE SYSTEMS:EXCHANGE RATES AND POLICIES

  35. 2013: QA1a(ii) – 2 marks • Explain the term “floating exchange rate system”.

  36. 2013: QA1b • Explain why a weak pound should encourage an increase in UK exports. (2 marks) • Apart from an increase in exports, describe the effects of a weak pound on the UK economy. (4 marks)

  37. 2013: QA1c – 3 marks • Explain why low interest rates in the UK economy might lead to a depreciation in the value of sterling.

  38. 2013: QA1f • Name one type of exchange rate system other than a floating system. (1 mark) • Describe one advantage and one disadvantage of the system you mentioned above. (4 marks)

  39. 2012: QA1d – 2 marks • Explain how the price of China’s imports of raw materials would be affected if the exchange rate of China’s currency were to rise.

  40. 2012: QB4b – 8 marks • Describe the factors which may cause the exchange rate of sterling to fall.

  41. 2012: QB4c – 7 marks • Describe the likely effects on the UK economy of a fall in the exchange rate of sterling.

  42. 2011: QA1e – 4 marks • Explain why a fall in the value of sterling: • Boosts exports • Puts upward pressure on the rate of inflation

  43. 2011: QB6d – 10 marks • Discuss the advantages and disadvantages of a floating exchange rate.

  44. 2010: QA2e – 4 marks • Explain one advantage and one disadvantage for the UK economy of a fall in the exchange rate of sterling.

  45. 2009: QA1e – 4 marks • Explain how an increase in the price of timber is likely to affect: • The UK balance of trade • The exchange rate of sterling Also in Balance of Payments

  46. 2008: QA1e – 2 marks • Explain the effect a rise in the price of oil might have on the foreign exchange value of sterling.

  47. 2008: QA2b(ii) – 3 marks • Explain how an increase in interest rates is likely to affect the exchange rate of sterling.

  48. 2007: QB4a – 8 marks The UK has decided not to join the Eurozone, and will continue to allow Sterling to float. One reason for this is that joining the Eurozone would result in a large fall in the UK rate of interest. • Explain factors that determine the demand for Sterling on the foreign exchange markets.

  49. 2007: QB4B – 10 marks The UK has decided not to join the Eurozone, and will continue to allow Sterling to float. One reason for this is that joining the Eurozone would result in a large fall in the UK rate of interest. • Discuss the advantages and disadvantages for a country of having a floating exchange rate.

  50. SQP: QA2f – 3 marks • Explain how the change in interest rates from 2003 to 2004 could have caused the change in exchange rates in those years.

More Related