A report by the European Union EU, found that on average UK car prices were 10% higher than in EU. In some cases, the difference in price could be much greater. Some people have taken advantage of this price difference to buy a new car on the continent. [BBC report] OCR exam question: Discuss factors …
Readers Question: If British industry was to become uncompetitive it would have the following adverse effects on the economy: one of them is a higher level of inflation. How to explain that? If British industry becomes uncompetitive it means that basically, the UK’s cost of production is rising faster than our international competitors. For example, …
Example of a AQA unit 4 question from June 2007. AQA paper available here Note: Some of the data can’t be published online. This is just a short guide to answer the question. I think it lacks – more use of data and more evaluation. Explain why Free Trade is important to EU member countries …
Readers Question: why is political stability needed to attract FDI? FDI = Foreign Direct investment. For example, if BP invested in Venezuela or Iraq to produce oil. This would be an example of foreign direct investment into Venezuela and Iraq. Clearly for countries like this, the political situation is going to be important for determining …
In the UK, it is currently the exam season and my students are finally thinking of doing some actual revision. These are some tips to make your revision more effective. Be practical. Don’t worry over results or speculate on grades, make small efforts to improve knowledge and exam writing technique. If you make those small …
Readers Question: What would stop the falling dollar? The dollar has been falling for many reasons. These are some of the factors which would stop the dollar falling and lead to a recovery in the value of the dollar. Higher Interest rates. US interest rates have been cut to 0% in an effort to stave …
Readers Question: Using the data and your own economic knowledge, evaluate the importance of rising productivity in bringing about an improvement in the UK balance of payment on the current account. Productivity is defined as output per worker or output per input. Rising productivity implies that the economy is becoming more competitive and will be …
Readers Question: Assess the view that supply-side reforms have enabled the UK economy to be ‘more successful in maintaining growth, despite an appreciation in the value of its currency’ (Extract 1, lines 5-6}. (From Edexcel unit 3) An appreciation in the exchange rate would tend to reduce aggregate demand and lead to lower economic growth. …