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Northern IrelandEconomics

A2 2: Managing the Economy in a Global World

5 dot points across 5 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

What does the balance of payments record, and how are exchange rates determined and managed?

The structure of the balance of payments, the causes and consequences of a current account imbalance, exchange rate systems, and exchange rate determination and effects.
A focused CCEA A-Level Economics answer on the balance of payments and exchange rates, covering the current and capital and financial accounts, the causes and consequences of a current account deficit, floating, fixed and managed exchange rate systems, how a floating rate is determined, and the effects of currency changes, with worked depreciation analysis.
11 min answer →

How is development measured, what holds poorer countries back, and what strategies help them grow?

The difference between growth and development, measures of development, the barriers to development, and strategies to promote development.
A focused CCEA A-Level Economics answer on economic development, covering the difference between growth and development, single and composite measures such as GDP per capita and the Human Development Index, the barriers to development, and market-led and interventionist strategies including aid, trade, microfinance and debt relief, with worked HDI reasoning.
11 min answer →

What is globalisation, and how do trading blocs and economic integration shape the world economy?

The causes and effects of globalisation, the role of transnational corporations, the stages of economic integration, and the costs and benefits of trading blocs such as the EU single market.
A focused CCEA A-Level Economics answer on globalisation and integration, covering the causes and effects of globalisation, the role of transnational corporations, the stages of economic integration from free trade area to monetary union, trade creation and diversion, and the costs and benefits of the EU single market, with worked integration analysis.
11 min answer →

Why do countries trade, and when might protecting domestic industry be justified?

The basis for international trade, absolute and comparative advantage, the gains from trade, the methods and effects of protectionism, and the terms of trade.
A focused CCEA A-Level Economics answer on international trade, covering absolute and comparative advantage, the gains from specialisation and trade, the methods of protectionism (tariffs, quotas, subsidies and barriers), the arguments for and against protection, and the terms of trade, with a worked comparative-advantage example.
11 min answer →

How does a government manage its economy within an interconnected world, and what constrains its policy?

The use of macroeconomic policy in an open economy, the role of international institutions, and the conflicts and constraints policymakers face in a global world.
A focused CCEA A-Level Economics answer on managing the open economy, covering how fiscal, monetary and supply-side policy work in a globalised world, the role of the IMF, World Bank and World Trade Organization, the constraints globalisation places on national policy, and the conflicts between objectives, with a worked policy analysis.
11 min answer →