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)