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
  • evaluate significance using inflows, GDP share, productive imports, reserves, duration and exchange correction

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