Economics 2281 · O Level · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
In 2016, France recorded a deficit in trade in services. France is a wealthy, developed nation with a high standard of living. However, the country is facing several difficulties, including population-related issues. In addition, after the 2017 elections, politicians and economists debated whether the country ought to attempt a move towards freer international trade.
(a)[2]
Define what a trade in services deficit is.
(b)[4]
Explain two population problems a rich, developed country may experience.
(c)[6]
Analyse how a move to freer international trade may benefit a country’s producers.
(d)[8]
Discuss whether or not 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” …