Economics 2281 · O Level · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
In recent years, Norway has taken part in free trade to a larger degree. The country uses a floating foreign exchange rate. The pattern of employment in Norway has altered. For example, more Norwegians now work in jobs that require a university degree. Some of these graduates are economists and lawyers who deal with mergers between firms. In 2017, there were 332 mergers, which was 23% higher than in the previous year.
(a)[2]
Identify two advantages of free trade.
(b)[4]
Explain two ways in which a floating foreign exchange rate differs from a fixed foreign exchange rate.
(c)[6]
Analyse how a shift in a country’s employment pattern may affect its average wage.
(d)[8]
Discuss whether or not a government ought to stop firms merging.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Increased output/growth” …