(a)
- Using Table 1.1, compare the inflation rates of China and India between 2012 and 2015. [2]
- Explain two possible reasons why the CPI might not be an accurate measure of inflation in a BRICS economy such as India. [4]
(b)[4]
Explain one possible aggregate demand reason and one possible aggregate supply reason for the different inflation rates in the BRICS economies since 2012.
(c)
- Using Fig. 1.2, describe the way China’s terms of trade moved from the peak in 2015 to the end of 2016. [2]
- Explain one possible explanation for this change. [2]
(d)[6]
Using the information, discuss which factor is most likely to determine how successfully India can compete with China when trading in world markets.