Edexcel A Level Economics A
Edexcel A Level Economics A 4.1 International Economics Exam Questions
Free Edexcel A Level Economics A exam questions on 4.1 International Economics, with mark schemes. Covers globalisation, specialisation and trade, trading blocs, protectionism, exchange rates and competitiveness.
4.1 International Economics exam questions
1 question pack of real past exam questions with its mark scheme. Answer every question without notes, then mark your answers line by line against the mark scheme.
StemUp mark scheme flashcards
Edexcel A Level Economics A 9EC0 Flashcards (Anki & Quizlet)
Every answer is written in mark scheme wording, so you learn exactly what examiners give marks for. Use them on Anki or Quizlet, then test yourself with the questions on this page.
£15.99View flashcards
About Edexcel A Level Economics A 4.1 International Economics
4.1 is the largest topic in Theme 4. Questions range from comparative advantage calculations to essays on protectionism, trading blocs and exchange rate systems.
What you need to know
- Globalisation Characteristics, causes and the impact on less developed countries, developed countries, governments, producers, consumers, workers and the environment.
- Specialisation and trade Absolute and comparative advantage, the assumptions and limits of comparative advantage, and the advantages and disadvantages of specialisation.
- Pattern of trade and terms of trade Factors that change the pattern of trade, and terms of trade = index of export prices / index of import prices x 100.
- Trading blocs and the WTO Free trade areas, customs unions, common markets and monetary unions, and the role of the World Trade Organization.
- Restrictions on trade Tariffs, quotas, subsidies to domestic producers, non-tariff barriers, and the reasons for and impact of protectionism.
- Balance of payments, exchange rates and competitiveness Floating, fixed and managed exchange rates, the Marshall-Lerner condition and J-curve, and measures of international competitiveness.
Common mistakes in 4.1 International Economics
- Calculating comparative advantage using absolute output rather than opportunity cost.
- Saying a tariff benefits consumers.
- Mixing up depreciation (floating) with devaluation (fixed).
- Assuming a currency depreciation improves the current account immediately, ignoring the J-curve.
Try three 4.1 International Economics exam-style questions
1. A country's export price index is 110 and its import price index is 125. Calculate its terms of trade. (2 marks)
Show the mark scheme answer
Terms of trade = 110 / 125 x 100 (1) = 88 (1).
2. Explain what is meant by comparative advantage. (2 marks)
Show the mark scheme answer
When a country can produce a good at a lower opportunity cost than another country (1), so both gain from specialising and trading (1).
3. Explain one effect of a tariff on imported steel on UK consumers. (3 marks)
Show the mark scheme answer
The tariff raises the price of imported steel (1), so domestic prices rise and consumers pay more (1), and the quantity bought falls, reducing consumer surplus (1).
4.1 International Economics FAQs
What does Edexcel A Level Economics 4.1 cover?
Globalisation, specialisation and trade, the pattern of trade, terms of trade, trading blocs and the WTO, restrictions on trade, the balance of payments, exchange rates and international competitiveness.
Do I need to draw a tariff diagram?
Yes. Show world supply, domestic supply and demand, the tariff raising the price, the fall in imports and the welfare loss triangles.
Which paper is Theme 4 examined in?
Paper 2, The national and global economy, together with Theme 2, and the synoptic Paper 3.
Revise this topic with flashcards: Edexcel A Level Economics A 9EC0 Flashcards, with mark scheme answers for Anki and Quizlet.
