interim

Question 1

what are 3 advantages to free trade

Answer 1

countries can specialise in what they produce best
more choice for consumer
increased competition which encourages efficiency

Question 2

what are 3 disadvantages to free trade

Answer 2

small industries will struggle against bigger firms
can harm environment
increase dumping - firms selling excess stock at below market price

Question 3

whats some reasons against protectionism

Answer 3

leads to higher price for consumers
production inefficiencies - less exposed to competition might decrease efficiency
could cause trade wars

Question 4

what are some advantages to protectionism

Answer 4

protects infant industries
domestic producers gain
government receive tax revenue
can help correct balance of payments issue

Question 5

what are the costs of globalisation

Answer 5

can increase inequality
cause inflation
cause unemployment
makes tax avoidance easier

Question 6

what are the benefit of globalisation

Answer 6

reap benefits of economies of scale 
greater choice of goods
greater competition 
lower price
increased investment

Question 7

what are the benefits of joining a european union

Answer 7

free movement of labour - fills labour gaps
free trade
free movement of capital

Question 8

what are the disadvantages to joining a european union

Answer 8

cost
inefficient policies - CAP
net migration causing overcrowding

Question 9

evaluation points for joining EU

Answer 9

percentage of GDP spent on the EU In UK is low
trade with EU has created jobs
encouraged investment

Question 10

what are the benefits to a monetary union

Answer 10

fixed prices - eliminates risk
reduce exchange rate costs
greater price transparency - easy to compare prices
greater trade

Question 11

what are the drawbacks of monetary union

Answer 11

loss of policy independence
inability to change value of currency
can cause structural problems

Question 12

what are the meausres of HDI

Answer 12

HDI based on
health
education
income

Question 13

what are the problems using HDI

Answer 13

GNI takes no account of distribution of income
mean years of education doesnt take into account quality of education
HDI doesnt take into account housing inequality and employment and environment

Question 14

what are the problems using GDP as a measure of living standards

Answer 14

doesnt include shadow economy which is illegal activities such as drug protection, fraud and tax evasion
GDP an be inaccurate
increase of GDP might be achieved at the expense of leisure time
could increase pollution
and doesnt show income distribution

Question 15

how can you raise economic development

Answer 15

trade liberalisation - encouraging domestic firms to be more efficient
government intervention - subsidies to the poor
foreign aid
debt relief
FDI