Globalisation (OCR A-Level Economics): Quizzes
📚Quizzes
Practise the questions
13 questions from this quiz
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Practise the questions
13 questions from this quiz
What defines absolute advantage in international trade?
What defines absolute advantage in international trade?
Producing with less resources & lower cost
What defines comparative advantage?
What defines comparative advantage?
Producing at lower opportunity cost
What is the formula for calculating terms of trade?
What is the formula for calculating terms of trade?
Which are key drivers of globalisation?
Which are key drivers of globalisation?
Trade, migration, financial flows, tech
What must be true for the Marshall-Lerner condition to hold?
What must be true for the Marshall-Lerner condition to hold?
PED for exports + PED for imports > 1
What happens initially after a currency depreciation according to the J-curve?
What happens initially after a currency depreciation according to the J-curve?
Current account worsens before improving
How does economic integration from globalisation benefit businesses?
How does economic integration from globalisation benefit businesses?
Access to larger markets & economies of scale
What does international competitiveness require a country to maintain?
What does international competitiveness require a country to maintain?
Real incomes while competing globally
Country A: 10 steel OR 5 wheat. Country B: 8 steel OR 6 wheat. Who has comparative advantage in steel?
Country A: 10 steel OR 5 wheat. Country B: 8 steel OR 6 wheat. Who has comparative advantage in steel?
Country A
What does an improvement in terms of trade mean for a country?
What does an improvement in terms of trade mean for a country?
Can buy more imports for given exports
How does currency depreciation affect a country's competitiveness?
How does currency depreciation affect a country's competitiveness?
Makes exports cheaper & imports dearer
Why does the trade balance follow a 'J' shape after devaluation?
Why does the trade balance follow a 'J' shape after devaluation?
Initial worsening then improvement over time
If ToT changes from 100 to 80, what has occurred?
If ToT changes from 100 to 80, what has occurred?
Deterioration in terms of trade