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EnglandEconomics

Trade and development

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

How does economic development differ from growth, how is it measured, and what holds developing economies back?

Economic development and developing economies: the difference between growth and development, the measurement of development including the Human Development Index, the characteristics of developing economies, and the barriers to development.
An Eduqas A520 answer to economic development, covering the distinction between economic growth and economic development, the measurement of development including GDP per capita and the Human Development Index, the common characteristics of developing economies, and the main barriers to development.
12 min answer →

What determines exchange rates, and how do their movements affect the economy?

Exchange rates: floating and fixed (and managed) exchange rate systems, the determinants of a floating exchange rate, the effects of appreciation and depreciation, and the Marshall-Lerner condition and J-curve.
An Eduqas A520 answer to exchange rates, covering floating, fixed and managed systems, what determines a floating exchange rate, the effects of appreciation and depreciation on trade, inflation and growth, and the Marshall-Lerner condition and the J-curve effect.
12 min answer →

What is driving globalisation, and who gains and loses from an increasingly integrated world economy?

Globalisation: the causes and characteristics of globalisation, the role of multinational corporations and foreign direct investment, and the costs and benefits of globalisation for developed and developing economies.
An Eduqas A520 answer to globalisation, covering its causes (trade liberalisation, technology, transport and capital mobility), its characteristics, the role of multinational corporations and foreign direct investment, and the costs and benefits of globalisation for both developed and developing economies.
12 min answer →

Why do countries trade, and how does comparative advantage explain the gains from specialisation?

International trade and comparative advantage: absolute and comparative advantage, the gains from trade and specialisation, the terms of trade, and the limitations of the theory.
An Eduqas A520 answer to the theory of international trade, covering absolute and comparative advantage, how opportunity-cost differences generate gains from specialisation and trade, the terms of trade, and the assumptions and limitations of comparative advantage.
13 min answer →

Why and how do governments restrict trade, and what do trading blocs and the WTO do?

Protectionism and trading blocs: tariffs, quotas, subsidies and other barriers, the arguments for and against protectionism, types of trading bloc, and the role of the World Trade Organisation.
An Eduqas A520 answer to protectionism, covering tariffs, quotas, subsidies and non-tariff barriers, the arguments for and against protection, the welfare effects of a tariff, the types of trading bloc (free-trade area, customs union, single market and monetary union), and the role of the World Trade Organisation.
13 min answer →

Which strategies can promote economic development, and what are their strengths and weaknesses?

Strategies to promote development: market-oriented and interventionist strategies, trade and aid, the role of foreign direct investment, microfinance and debt relief, and their effectiveness.
An Eduqas A520 answer to development strategies, covering market-oriented strategies (trade liberalisation, FDI, removing subsidies) and interventionist strategies (aid, infrastructure, industrial policy), the trade-versus-aid debate, microfinance and debt relief, and an evaluation of their effectiveness.
12 min answer →