Economics 0455 · IGCSE · Current account of balance of payments
Current account of balance of payments — practice question
Foreign tourism has grown. Increasing numbers of people from both developed and developing countries are going on holidays overseas. Foreign tourism brings advantages as well as disadvantages. It creates employment, although some of the jobs are poorly paid and require few skills. The quality of employment can vary between developed and developing countries, as can the problems they face, including population problems.
(a)[2]
How are earnings obtained by a country from foreign tourism shown in the current account of its balance of payments?
(b)[4]
Explain two factors that could lead to an increase in foreign tourist numbers in a country.
(c)[6]
Analyse why workers with the same skills might be paid at different wage rates.
(d)[8]
Discuss how population problems in developing countries may differ from those in developed countries.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Shown as a credit entry” …