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Edexcel A-Level Economics A2 4.3.3 1d Significance of Global Trade Imbalances Questions

Practise analysing why global trade imbalances matter, using current account data to link external balances to macroeconomic effects.

Syllabus
First assessment 2019
Course
Economics YEC11
Level
A2

Exam points

  • explain how a current account deficit may use reserves, foreign borrowing, IMF support or asset sales
  • analyse weak competitiveness through slower growth, unemployment and structural industrial weakness
  • explain net import leakage through aggregate demand, the multiplier, output, income and employment
  • analyse depreciation, imported inflation and a heavier domestic burden from foreign-currency debt
  • explain protectionism, confidence and unstable foreign financing as external-vulnerability risks

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