UK External Position: Specimen Questions

AQA

Using the data and your economic knowledge, evaluate the government policies which might improve the UK balance of trade in goods and services.

(AQA, June 2008)

Explain the possible costs and benefits for an economy arising from its involvement in international trade.

(AQA, June 2008)

Explain the factors which may help to determine an economy’s export performance.

(AQA January 2008)

Using the data and your economic knowledge, evaluate the possible consequences for UK macroeconomic performance if the euro area and the US seek to reduce their balance of payments deficits on current account.

(AQA January 2008)

Evaluate the possible economic consequences for UK macroeconomic performance of changes in the external value of the pound.

(AQA, June 2007)

Explain the possible reasons for changes in the pattern of trade between the UK and the rest of the world.

(AQA, January 2007)

Evaluate the measures which may be taken to deal with a balance of payments deficit on current account.

(AQA, January 2007)

Using the data and your economic knowledge, evaluate the effects on the UK trade balance in goods and services of further improvements to the supply side of the economy.

(AQA, June 2006)

Using the data and your economic knowledge, evaluate the consequences for an economy such as the USA of a fall in the exchange rate of its currency against the currencies of its major trading partners.

(AQA, June 2005)

Evaluate the possible effects on the UK balance of payments on current account of a “slowdown in the global economy”.

(AQA, January 2005)

Explain the economic factors which might determine patterns of trade between countries.

(AQA, January 2005)

In recent years, there has been a series of international agreements to promote free trade in the world economy. Discuss the possible costs and benefits for developed and developing countries if there were to be complete free trade throughout the world economy.

(AQA, January 2005)

Evaluate the case for allowing countries to protect their economies from foreign competition.

(AQA, June 2003)

Edexcel

Both the USA and the UK’s balance of payments accounts are recording large deficits on their trade in goods balances. Do such deficits matter? Justify your answer.

(Edexcel, June 2006)

Evaluate the likely economic effects of a fall in the UK’s competitiveness.

(Edexcel, June 2005)

Evaluate the likely economic implications of an increase in protectionism on a country’s economy.

(Edexcel, June 2005)

Examine factors which might explain the trend in the UK trade in goods and services account.

(Edexcel, June 2005)

Examine the factors which affect the international competitiveness of the UK’s goods and services.

(Edexcel, June 2005)

Evaluate the likely economic implications of a fall in foreign direct investment for the UK economy.

(Edexcel, June 2004)

To what extent are trade deficits a cause for concern?

(Edexcel, June 2004)

Britain had a deficit in its trade in goods balance of £34bn in 2002. Examine the likely causes of this deficit.

(Edexcel, June 2003)

The UK is the largest recipient of inward foreign investment within the EU. Evaluate the benefits of such foreign investment for the UK economy.

(Edexcel, June 2003)

OCR

Discuss the extent to which an increase in exports will improve a country’s macroeconomic performance.

(OCR, June 2008)

Explain how specialisation and free trade, according to comparative advantage, can lead to welfare gains for a country.

(OCR, June 2008)

Discuss the extent to which an overvalued currency may harm the performance of the UK economy.

(OCR, January 2008)

With the use of a diagram, explain how the Bank of England could prevent large fluctuations in the sterling exchange rate.

(OCR, June 2007)

Discuss whether a depreciation of the pound sterling will have a positive impact on the UK economy.

(OCR, January 2005)

Discuss how increased trade with China is likely to affect the UK’s economic performance.

(OCR, June 2004)

Discuss the factors that determine the trade competitiveness of the UK economy.

(OCR, June 2003)

Discuss the extent to which movements in exchange rates are the only reason for the changes in the UK’s balance of payments on current account in recent years.

(OCR, January 2003)