CourseCourse QuestionQuestionDocumentDocument

Pearson Edexcel IAL Economics

Unit 3: Business Behaviour

Unit 4: Developments in the Global Economy

4.3.1 - Causes and effects of globalisation

4.3.2 - Trade and the global economy

4.3.3 - Balance of payments, exchange rates and international competitiveness

4.3.3.1a - Components of the balance of payments: payments • the current account • the capital and

4.3.3.1b - Causes of deficits and surpluses on the current account

4.3.3.1c - Measures to reduce a country's imbalance on the current account

4.3.3.1d - significance of global trade imbalances

4.3.3.2a - distinction between fixed, managed and floating exchange rates

4.3.3.2b - Government intervention in currency markets through: • foreign currency transactions •

4.3.3.2c - Factors influencing floating exchange rates: • relative interest rates • relative

4.3.3.2d - distinction between revaluation and appreciation of a currency

4.3.3.2e - distinction between devaluation and depreciation of a currency

4.3.3.2f - impact of changes in exchange rates on: • the current account of the balance of

4.3.3.2g - Competitive depreciations/devaluations and their consequences

4.3.3.3a - Measures of international competitiveness: competitiveness • relative productivity

4.3.3.3b - Factors influencing international competitiveness: • productivity • quality of human

4.3.3.3c - Measures to increase international competitiveness: • policies to improve education and

4.3.3.3d - significance of international competitiveness: • advantages for an economy of being

4.3.4 - Poverty and inequality

4.3.5 - The role of the state in the macroeconomy

4.3.6 - Growth and development in developing, emerging and developed economies

Assessed quantitative skills

A-Level/Edexcel/Economics//A2/Concept/Unit 4: Developments in the Global Economy/4.3.3 - Balance of payments, exchange rates and international competitiveness/4.3.3.2b - Government intervention in currency markets through: • foreign currency transactions •

Unit 4: Developments in the Global Economy

Syllabus: 2018
Section: —
Level: A2

Exam analysis

Most tested topics

Causes and effects of globalisation
Trade and the global economy
Balance of payments, exchange rates and international competitiveness
Poverty and inequality
The role of the state in the macroeconomy
Growth and development in developing, emerging and developed economies