AQA Economics Unit 4 11th June 2013

I preferred the global context question too. The 25 marker was about Middle East and North African countries, asking to what extent the UK should be concerned by a strengthening of the economic importance of these countries. Pretty open, lots of usable points in the data.

I did the same question, different structure though

First talked about effect of Supply side policies (Reduction in Corp tax, Deregulation, Improvement in the occupational mobility of labour) on the balance of trade and evaluated, stating it has a positive effect blah .. but long term and does not solve anything in the short run, leads to reduction in living standards in the short run and evaluated with macro eco indicators

Then said however alternative policies could be used, i.e Expenditure Switching, Expenditure reducing .. with Evaluation

Then concluded that supply side policies are effective in improving the balance of trade in goods .. could reduce structural deficit, but there are drawbacks in the short run (relating to current government policy), also stating that expenditure switching and reducing policies can have some success in the short run.
Then as a last point questioning whether the deficit in the balance of trade is a bad thing .. explaining that the total deficit is 3% of GDP, the deficit is structural though ..)

Probably other stuff but thats all i can remember, rushed for time a bit in evaluating expenditure switching policies

Ooyar, can't really remember if i'm honest! For the EU, I literally went through the extract, highlighted everything I need and used all of it, didn't need to think of anything because it was all there! x

Anybody worried about the fact that they mentioned leaving the EU, don't be. If you related leaving the EU to developing stronger links with BRIC countries and how that might boost export-led growth you will still pick up marks.

I talked about the standard points. increased growth for uk, potentially better and worse B.O.P, potentially higher and lower inflation, potentially higher and lower unemployment :P

Then linked it all to the text. inward investment into the UK, b.o.p. could get worse if certain uk industries displaced, but uk mostly tertiary so might not have a huge impact. higher inflation through increased AD through export rises and increased investment to uk, but if there is economic growth then firms are more likely to invest in MENA potentially unlocking more resources hence increasing supply and deflationary pressures. but inflation could also rise due to unrest shrinking supply. Talked about how mature economies such as the UK are better off due to stuff like diversity within their natural resource outlets (i.e. they have the north sea oil field so potentially self-sufficient in the future). unemployment likely to fall overall from the higher growth but could have bouts of structural unemployment.

said that there are potential issues, but maybe due to geographical proximity plus the fact that productivity in MENA countries is low, could lead to the effects being limited?

etccccccccc

Is that ok :O?

As long as you related it to an increase in export-led growth its fine. For example you could have mentioned that if the UK left the EU it could make better use of its comparative advantage in financial services and export to emerging economies.

I'm sure that's fine! I didn't actually use any of those points though, just shows how broad the question was!

Quick question - with regards to the 5 marker on context 2, would a valid point to pick out be the fact that the annual % change in actual GDP for each economy in 2011, excluding Spain and France, had decreased in comparison to their figures for annual % change in actual GDP in 2010? A bit worried that I may not get marks for that point. :s

Can someone who did context 1 check what I wrote :/. Worried I did it wrong

I talked about the standard points. increased growth for uk, potentially better and worse B.O.P, potentially higher and lower inflation, potentially higher and lower unemployment :P

Then linked it all to the text. inward investment into the UK, b.o.p. could get worse if certain uk industries displaced, but uk mostly tertiary so might not have a huge impact. higher inflation through increased AD through export rises and increased investment to uk, but if there is economic growth then firms are more likely to invest in MENA potentially unlocking more resources hence increasing supply and deflationary pressures. but inflation could also rise due to unrest shrinking supply. Talked about how mature economies such as the UK are better off due to stuff like diversity within their natural resource outlets (i.e. they have the north sea oil field so potentially self-sufficient in the future). unemployment likely to fall overall from the higher growth but could have bouts of structural unemployment.

said that there are potential issues, but maybe due to geographical proximity plus the fact that productivity in MENA countries is low, could lead to the effects being limited?

ohhh :/// what points did I miss?

It's not that you missed any, I think we just approached it from different angles. Just trying to remember; I spoke about how the extent to which it would concern the UK depends on the manufactured products and services that MENA countries specialised in i.e if they were products the UK make, it could impact trade but unlikely to cause UK concern

The extent to which MENA countries were strengthening their importance-- how much is significant and who this is more likely to affect.. magnitude and incidence covered for evaluation.

Also shouldn't concern UK massively as the MENA countries were facing difficulties, depends on the time it takes them to overcome these and whether they look to FDI from UK to appease this.. quoted some of Iraq's figures from the table to back these up. Oh and also the speed at which this would even happen, if it was a gradual growth in development UK would be able to anticipate and resolve to whatever extent it affected them. I also mentioned that this could be countered by the statement from the article about the other countries "following Jordan's lead" and the argument that Jordan had established FTAs

Whether it could be beneficial for UK economy.. can't remember my point for that!

Ye that's sounds alright. I put most of that. Went on to say that an indebted UK consumer and government means internal recovery is unrealistic and that export growth would be highly beneficial. But then said how we do little trade currently with emerging economies so, MENA growth may be insignificant. Also talked about the damage MENA countries via economic growth could do to the environment and the affect on UK consumer welfare this could entail. Then concluded by saying there could be a potential worry if their reliance on oil money falls as a result of their increasing economic power, and thus they are able to charge whatever proce they want for it - holding all the cards in effect.

Didn't mention BOP though...wish I had :/

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fair enough

lool thought i had done it wrong for a second! that 'if all' in the question was what probably caused the split