gcse economics - international trade - past exam questions

FOUNDATION LEVEL

• In recent years, trade with the European Union has grown rapidly, so that today 50% of all visible trade is with the UK’s European Union partners.
a) what is meant by visible trade? (2)
b) suggest why so much of the UK’s trade is with the European Union (5)

• Supercakes Ltd is a company which produces cakes and biscuits. It is hoping to sell its products outside the European Union but in trying to do so it faces trade barriers.
a) What is a trade barrier? (2)
b) Why do countries introduce trade barriers? (4)

HIGHER TIER

Study the table and answer the questions below

• Calculate the balance of trade (2)
• Calculate the current account balance (3)

• Explain how the UK’s current account balance would be affected by:
a) UK consumers buying more foreign holidays (2)
b) French consumers buying more cars from the UK (2)

• Explain the advantages and disadvantages of policies which a government might use to reduce a current account deficit (10)

• How might a slow down in the UK economy’s rate of growth affect the balance of payments? Explain your answer. (6)

• In what ways could a strong £ and high interest rate policies affect a car manufacturer in the UK? (6)

• What do you think are the main factors that determine the main export markets for UK goods and services? (10)

• Explain 2 ways in which a country might protect its domestic market from imports (4)

• Do you think that British membership of the single European currency will benefit UK firms? Give economic reasons for your decision. (9)