👑International Trade   Essays

Assess whether a rise or a fall in the terms of trade will benefit the macroeconomic performance of an open economy that is heavily dependent on international trade.

Analyse the reasons for imposing tariffs on imports.

Explain the difference between the terms of trade and the balance of trade in goods and consider whether an economy should be more concerned about its terms of trade than its balance of trade in goods.

The presence of multinational corporations (MNCs) in a low-income country always promotes economic growth in that country. Evaluate this statement. (20 marks)

Discuss whether or not an increase in exports will benefit an economy.

Discuss whether or not imposing tariffs on imports will increase a country’s output.

Analyse how a government could reduce protectionism and move towards free international trade.

Discuss whether or not a rise in a country’s foreign exchange rate would benefit its economy.

An economy adopts a freely floating exchange rate.
Explain how this economy’s exchange rate is likely to be affected when its inflation rate is much higher than inflation rates in its trading partners.

Discuss the advantages and disadvantages that result from a rise in an economy’s terms of trade and consider whether a rise is likely to be of overall benefit to an economy.

Explain two reasons why a government may want to reduce imports.

An economy is facing the shutdown of its steel making industry as a result of cheap imports.

Explain what is meant by ‘protectionism’ and describe two ways in which this steel industry could be protected. [8]