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Welcome back now you are in the Upper 6th!

Welcome to International Economics

Course Overview

It is very important if you want to be scoring top grades that you consider carefully how you will learn this section of the syllabus. First think about how you will be assessed and tested. You will not be asked to answer essay type questions but data response questions - less depth and more thinking.

The structure of all data response questions is as follows:

This is taken from the May 2012 Paper 2 Data Response Question 4 and has an article entitled

Venezuela takes steps to end currency speculation

(Complete Paper is on Firefly on the Economics Resources Page)

(a) always consists of 2 Definition questions where you need to have a memorised definition along with a supporting statement (eg an example) for which you can score 2 marks each:

(a) Define the following terms indicated in bold in the text:

(i) informal market (paragraph 1)                                                        [2 marks]

(ii) exchange rate (paragraph 2).                                                         [2 marks]

(b) and (c) are about your knowledge, understanding and basic skills in economics and are out of a maximum 4 marks each. If it is a conceptual question as in question (b) below you gain 2 marks for showing knowledge of what the concept is and 2 marks for applying it to the text. If it is a diagram (specified) then 2 marks for a clear, accurate and fully labelled diagram and 2 marks for the explanation.

(b) Explain why Venezuela operates a “two-tiered official exchange rate” (paragraph ). [4 marks]

(c) With the aid of an appropriate diagram, explain how the “rapidly falling value of the bolivar fuerte” (paragraph ) is likely to influence inflation. [4 marks]

(d) Is testing your ability to evaluate and discuss issues within the context of the text provided. It invariably has the phrases: using information from the text; yourknowledge of economics; evaluate (or discuss), see question (d) below.

(d) Using information from the text/data and your knowledge of economics, evaluate the policy of the Venezuelan government of maintaining a fixed exchange rate.                                                                                                                                                                                                         [8 marks]

The iText has key word sections for each of the sections of the syllabus (Pages 2 to 10) the syllabus content begins on page 11 onwards.

Now letīs get started on The Benefits of Trade to answer the question Why do Countries trade?