Edexcel A-Level Economics A2 4.3.3 1c Measures to Reduce a Countrys Imbalance on the Current Account Topic Practice

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Pearson Edexcel IAL Economics

Unit 3: Business Behaviour

3.3.1 - Types and sizes of businesses

3.3.2 - Revenue, costs and profits

3.3.3 - Market structures and contestability

3.3.4 - Labour markets

3.3.5 - Government intervention

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

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