[Placebo101]

(Original post by Groat)
Yeah, I meant diverge.

The thing is, there are explanations of why the real exchange rate is different in the textbook, but not as to why it increases faster than nominal. I'm annoyed at myself as I thought I had the real exchange rate formula right, so I based my argument on that, but I had the price indexes the wrong way round on the fraction.

Yeah, ten marks for the ISEW was a bit stretching.

I forgot to mention about China having to curb and target inflation in the long-run, but mentioned loads for the balancing question.

You needed a formula for the real exchange rate question?

Wouldn't a fixed exchange rate and export subsidies be right?

[Groat]

(Original post by Placebo101)
You needed a formula for the real exchange rate question?

Wouldn't a fixed exchange rate and export subsidies be right?

It could've helped you to see that inflation causes it to change. But I was annoyed as I'd written it to the other way round, with it being price index of USA / price index of China.

[shayday]

(Original post by Groat)
I thought it was okay, but I'm struggling to see where ten marks will be on the mark scheme! Normally the comment questions have clear analysis, but this didn't.

The OCR textbook gives specific pros and cons of adjusted indicators and ISEW. Luckily I memorised them last night. All the rest of that revision was a waste tho. Heckscher-Ohlin Theory? Pffttttttt

[Groat]

(Original post by shayday)
The OCR textbook gives specific pros and cons of adjusted indicators and ISEW. Luckily I memorised them last night. All the rest of that revision was a waste tho. Heckscher-Ohlin Theory? Pffttttttt

Very little on development! With all the four markers I'd predicted, they had to pick one I hadn't even thought about.

[shaan_joshi]

why am I even looking at this, can't do anything now!haha

[Placebo101]

I took adjusted measures to mean things like ISEW, HDI and the Happiness Index. I concentrated mainly on the fact that they were qualitative variables that were quantifiable and I said that real GDP is stronger in that regard. I said GDP definitely can't fully measure development and no measure like ISEW can take into account everything that's important to a specific country because it will need to simplify things to compare them internationally. Conclusion: Ultimately a true indicator of economic progress can only be given by a case study but GDP gives a rough outline of the development of an economy, ISEW and other methods aren't as rough but they're still subjective but good for targeting and comparisons over time or with other countries.

[uxa595]

(Original post by shayday)
The OCR textbook gives specific pros and cons of adjusted indicators and ISEW. Luckily I memorised them last night. All the rest of that revision was a waste tho. Heckscher-Ohlin Theory? Pffttttttt

I did the heckshcher-ohlin theory in 2b!

didn't spell it right though, putting down hecksher-ohlin

[Placebo101]

(Original post by uxa595)
I did the heckshcher-ohlin theory in 2b!

didn't spell it right though, putting down hecksher-ohlin

Is that the theory that it's better for the economy to be in the tertiary sector than the primary sector?

[uxa595]

(Original post by Placebo101)
Is that the theory that it's better for the economy to be in the tertiary sector than the primary sector?

Nah.
Countries will exports good in which they have a comparative adv while importing goods that are scare.
I can't remember how i linked it in though.

[ILM16]

(Original post by owen1994)
The answer to the growing divergence question was the fact that China have a managed exchange rate regime, reducing the rate at which it appreciates meaning the real appreciates at a faster rate.

And the fact that the price level in China was rising much faster than in the US due to an increase in relative unit labour costs of 21%. So the real exchange rate appreciates, even if the nominal remains the same.

Basically the answer to this question was on the 'The Economist' website, I am pretty sure @Chunkyjooj linked this on his Extract questions.

I'll be happy with 2 marks then

I just put they managed their exchange rate and pegged it against the dollar, so even though the real rate appreciated, the nominal stayed the same resulting in the divergence.

[kingshan16]

haha i just thought of a sick point we could have all put in the last question but we didnt

if china is gonna ban if they using these raw materials to make products like tv etc. If they making these products no one china has the consuming power to purchase these goods as most are middle or poor families with a ratio of saving so we could have said in the long they just gonna have stock of all these good left.

[ILM16]

Also did anyone say that by China banning key raw materials they actually hinder sustainable economic development as these materials can be used to advance green technologies (as evidenced by the stimulus material) and hence be transferred back to China to aid in their drive for more sustainability...?

[94george94]

(Original post by ILM16)
Also did anyone say that by China banning key raw materials they actually hinder sustainable economic development as these materials can be used to advance green technologies (as evidenced by the stimulus material) and hence be transferred back to China to aid in their drive for more sustainability...?

I wrote the first part, not the second part though.

[ILM16]

(Original post by 94george94)
I wrote the first part, not the second part though.

I really hope that's explicit evaluation, need to get some marks back on the 20 marker

[Placebo101]

Structure for the last question:

Definition, explanation, analysis of export quota/ban

Benefits to China of export ban
Costs to China of export ban
What impact of export ban in China depends on
Will China benefit from export ban?


Benefits to rest of world of export ban
Costs to rest of world of export ban
What impact of export ban in rest of world depends on
Will rest of world benefit from export ban?

Rank each point throughout made in terms of how important it will be for everyone
Overall conclusion whether export ban good or bad, alternatives that could be used?

Diagrams: Export quota, Monopoly diagram

[wwelol]

(Original post by uxa595)
I did the heckshcher-ohlin theory in 2b!

didn't spell it right though, putting down hecksher-ohlin

y u do it in 2b does not relate to the question or any???

[uxa595]

(Original post by wwelol)
y u do it in 2b does not relate to the question or any???

Sorry, 2c and i think i related it. Not sure how.
I talked about China's export industry and related it to that somehow.

[94george94]

(Original post by uxa595)
Sorry, 2c and i think i related it. Not sure how.
I talked about China's export industry and related it to that somehow.

You related the ISEW to that? What kind of sorcery is this?!

[uxa595]

(Original post by 94george94)
You related the ISEW to that? What kind of sorcery is this?!

Lol, wrong again sorry. 1c

It was the question with China and inflation i think. Inflation up = exports fall. Linked it to that someone.

I think i said something like:
Ohlin theory stats that a country will export a good it's best at. China is best at exporting and therefore, this industry will be effected most and so their GDP is greatly affected.
Or maybe i worded it a little better then that.


Oh well, i think i got at least 7-8 for that Q.

**** the PPP/nominal Q though

[94george94]

(Original post by uxa595)
Lol, wrong again sorry. 1c

It was the question with China and inflation i think. Inflation up = exports fall. Linked it to that someone.

I think i said something like:
Ohlin theory stats that a country will export a good it's best at. China is best at exporting and therefore, this industry will be effected most and so their GDP is greatly affected.
Or maybe i worded it a little better then that.


Oh well, i think i got at least 7-8 for that Q.

**** the PPP/nominal Q though

I think everyone has performed quite badly on that question to be honest, I wrote about rising relative inflation, and kinda got the fixed nominal exchange rate in... don't know if they'd give me the marks!