(a)[2]
Define the term free trade.
(b)[4]
Explain two likely causes of better healthcare.
(c)[6]
Analyse why few MNCs might decide to locate in a specific region.
(d)[8]
Discuss whether inflation is always a disadvantage to an economy.
Economics 0455 · IGCSE · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
Vorarlberg, which is a region in Austria, has the highest income and the best healthcare of any area in Austria. Its location close to Germany and Switzerland, together with free trade between these countries, is an advantage. Even so, Vorarlberg has only a small number of foreign multinational companies (MNCs), and its inflation rate is higher than that in most parts of Europe.
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This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Trade between countries takes place with no tariffs, quotas or similar barriers.” …
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