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EnglandEconomics

Theme 4: A global perspective

6 dot points across 6 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

Why are some economies still developing, and what strategies promote growth and development?

Measures of development, the factors influencing growth and development, market-oriented and interventionist strategies, and the role of aid, trade and institutions.
An Edexcel A-Level Economics A answer to emerging and developing economies, covering the difference between growth and development, the Human Development Index, the barriers to development such as primary product dependency and the savings gap, and market-oriented and interventionist strategies including aid, trade and microfinance.
12 min answer →

How are exchange rates set, and how do they affect the balance of payments?

Exchange rate systems, the determinants of floating exchange rates, the effects of changes in the exchange rate, the balance of payments, and the relationship between competitiveness and the current account.
An Edexcel A-Level Economics A answer to exchange rates and the balance of payments, covering floating, fixed and managed exchange rate systems, the determinants of a floating rate, the effects of appreciation and depreciation, the Marshall-Lerner condition and J-curve, the structure of the balance of payments, and international competitiveness.
12 min answer →

Why do countries trade, and how do they protect or open their markets?

Globalisation, absolute and comparative advantage, the gains from trade, protectionism, trading blocs and the role of the World Trade Organisation.
An Edexcel A-Level Economics A answer to international economics and trade, covering globalisation and its effects, absolute and comparative advantage, the gains from specialisation and trade, the patterns of trade, methods of protectionism, trading blocs and the role of the World Trade Organisation.
12 min answer →

How do economists measure poverty and inequality, and what causes them?

Absolute and relative poverty, the measurement of inequality using the Lorenz curve and Gini coefficient, the causes and effects of inequality, and the distinction between wealth and income.
An Edexcel A-Level Economics A answer to poverty and inequality, covering absolute and relative poverty, the difference between income and wealth, the measurement of inequality using the Lorenz curve and Gini coefficient, the causes of inequality, and the role of capitalism and redistribution policy.
11 min answer →

How do governments raise and spend money, manage their debt, and influence the whole economy?

Public expenditure and taxation, the budget balance and national debt, fiscal and supply-side policy in a global context, and the role of macroeconomic policies in managing the economy.
An Edexcel A-Level Economics A answer to public finances and policies, covering public expenditure and progressive, proportional and regressive taxation, the distinction between the budget deficit and national debt, automatic stabilisers and discretionary fiscal policy, and the use of fiscal, monetary and supply-side policy to manage a global economy.
12 min answer →

What does the financial sector do, and why does it sometimes fail?

The role of financial markets, market failure in the financial sector, the role of central banks, and the regulation of the financial system.
An Edexcel A-Level Economics A answer to the financial sector, covering the role of financial markets in the wider economy, the causes of market failure in the financial sector such as asymmetric information and moral hazard, the role of central banks, and the regulation of the financial system after the 2008 crisis.
11 min answer →