Economics 0455 · IGCSE · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
In 2016, France recorded a trade in services deficit. France is a wealthy, developed country with a high standard of living. However, the country faces a number of difficulties, including population issues. Also, after the 2017 elections, politicians and economists debated whether the country ought to shift towards freer international trade.
(a)[2]
Define what is meant by a trade in services deficit.
(b)[4]
Explain two population problems that a rich, developed country may face.
(c)[6]
Analyse how a move to freer international trade may help a country’s producers.
(d)[8]
Discuss whether the standard of living is higher in developed countries than in developing countries.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Imports of services are greater than exports of services” …