Edexcel A Level Economics B
Edexcel A Level Economics B 2.4 Life in a Global Economy Exam Questions
Free Edexcel A Level Economics B exam questions on 2.4 Life in a Global Economy, with mark schemes. Covers globalisation, trade and exchange rates and their impact on firms.
2.4 Life in a Global Economy 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.
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A Level Economics Flashcards
Every answer is written in mark scheme wording, so you learn exactly what examiners give marks for. Pick your exam board, then test yourself with the questions on this page.
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About Edexcel A Level Economics B 2.4 Life in a Global Economy
2.4 shows how firms are affected by the global economy. Exchange rate questions are common, so be fluent in what appreciation and depreciation do to exporters and importers.
What you need to know
- Globalisation Growing integration of economies through trade, capital flows, migration and technology.
- Trade Benefits of trade through specialisation, and the role of multinational corporations.
- Exchange rates How appreciation and depreciation affect export and import prices, competitiveness and costs.
- Impact on firms New markets and cheaper inputs, but more competition and exchange rate risk.
Common mistakes in 2.4 Life in a Global Economy
- Saying a strong pound helps exporters.
- Assuming globalisation only benefits large firms.
- Ignoring the cost of imported inputs when discussing depreciation.
Try three 2.4 Life in a Global Economy exam-style questions
1. Explain how a depreciation of the pound affects UK exporters. (2 marks)
Show the mark scheme answer
UK exports become cheaper in foreign currency (1), so demand for them rises and exporters may sell more (1).
2. Explain one benefit of globalisation for UK consumers. (2 marks)
Show the mark scheme answer
More imports and competition (1) give consumers wider choice and lower prices (1).
3. Explain one disadvantage of a strong pound for a UK manufacturer. (2 marks)
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Its exports become more expensive abroad (1), reducing international sales and profits (1).
2.4 Life in a Global Economy FAQs
What does Edexcel A Level Economics B 2.4 cover?
Globalisation, international trade, exchange rates and their effects on firms and consumers.
What is the acronym for exchange rate effects?
SPICED: Strong Pound, Imports Cheaper, Exports Dearer.
Are multinationals in this topic?
Yes, their role in globalisation and their impact on host countries.
Revise this topic with flashcards: A Level Economics Flashcards, with mark scheme answers for Anki and Quizlet.
