Economics Stimulus MaterialWatch
Page 1 : Globalisation - A Cause for Celebration or Not?
Potential themes / topics:
1) Globalisation. This will be a key feature of the exam; after all, the unit is concentrated on it.
2) Recession. They might ask you to define the key term. Remember - a recession is two consecutive quarters of economic growth in the economy.
3) Knowledge of current account, components of the current account. You may be asked to calculate the value of trades in goods and services, etc.
4) Volume of trade - comparative / absolute advantages of an economy.
5) Globalisation = systemic risk. Countries rely on each other, are interlinked. The US economy is an engine of world growth, so is China. Interdependence in general.
6) Competitiveness. You need to know about internal & external competitiveness.
7) Role of multinational companies (the benefits and disadvantages). Be prepared to write at length about them.
8) PPP (Purchasing Power Parity) at constant rates. References to the 'Big Mac Index'. Competitive advantages and disadvantages. GDP comparisons looking at PPP. GDP at constant prices - if there is economic growth, it is not because of inflation. GDP at current prices - economic growth is due to inflation.
9) Questions about the table. Usually interpretation questions, so I should imagine they won't be too hard.
1) Primarily focus on pages 112-113 from the OCR GCSE Economics Textbook by Christopher Bancroft, Amy Chapman and Clive Riches. (This is the Balance of Payments topic) You may be asked to find:
- The current account
- Trade in goods
- Trade in services
- Investment Income
Because the following data is composed of UK Exports and Imports of Goods, it is more than likely that you will be asked to calculate a Balance in Goods for a particular year. You may be also asked to state whether it is a surplus or deficit.
1) The changing pattern of China's Trade in Goods.
1) The changing pattern of India's trade in goods - the top 10 Indian export markets and sources of imports into India.