Economics 0455 · IGCSE · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
During recent years, Norway has taken part in free trade to a larger extent. The country uses a floating foreign exchange rate. The pattern of employment in Norway has also altered. For instance, a greater number of Norwegians now hold jobs that require a university degree. Some of these graduates work as economists and lawyers who deal with mergers between firms. In 2017, there were 332 mergers, which was 23% above the figure for the previous year.
(a)[2]
Identify two advantages of free trade.
(b)[4]
Explain two contrasts between a floating foreign exchange rate and a fixed foreign exchange rate.
(c)[6]
Analyse how a change in the pattern of employment in a country can alter its average wage.
(d)[8]
Discuss whether a government should prevent firms from merging.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Higher levels of output and growth” …