👑International Trade   Essays

Explain causes of an increase in the value of a country’s floating foreign exchange rate.

Analyse how an increase in labour productivity in a country can increase a surplus on the current account of its balance of payments.

Explain how a high rate of inflation and a rise in an economy’s exchange rate can each cause a deficit in an economy’s current account of the balance of payments. [8]

In Pakistan there is a limited choice of cars to buy. The country has a population of approximately 190 million but only about 120 000 cars a year are produced there. The firms producing cars in Pakistan are protected from foreign competition by a range of methods of trade protection.

Discuss whether demand for cars is likely to increase in the future.

Describe the four components of the current account of the balance of payments. Explain what might cause a deficit in this account. [8]

Discuss whether or not an economy would benefit from one of its industries opening branches in other countries.

Explain reasons why a country might want to restrict exports.

Discuss whether a government should use trade protection to reduce a current account deficit.

Analyse the impact on an economy of the removal of import quotas imposed by other countries.

Discuss whether or not a reduction in imports is beneficial to an economy.

Analyse how a fall in a country’s foreign exchange rate could reduce a deficit on the current account of its balance of payments.

Explain why an infant industry may need protection.