Download 23_Essay Skills

Essay Skills
2nd attempt!
Olde Edexcel Essay style!
Feb 2010 UNIT 6 paper.






1. (a) Assess the impact on the world economy of the growth of regional
trade blocs. (20)
(b) Examine the likely impact of global recession on interdependence
between countries in the world economy. (30)
2. (a) In 2000/01 the UK’s public expenditure was 37 per cent of GDP.
This is forecast to increase to over 45 per cent of GDP by 2009/10.
Examine the likely economic effects, apart from increased taxation, of
this trend. (20)
(b) Assess the economic effects of a significant increase in taxation in
the UK economy. (30)
3. (a) Examine the likely factors which affect decisions by multinationals
to invest in EU countries. (20)
(b) The UK has been the largest recipient of inward foreign investment
within the EU in recent years. Evaluate the benefits of such foreign
investment for the UK economy. (30)
Olde Edexcel Essay style!
Feb 2010 UNIT 6 paper.






1. (a) Assess the impact on the world economy of the growth of regional
trade blocs. (20)
(b) Examine the likely impact of global recession on interdependence
between countries in the world economy. (30)
Which one would
you choose to
write in the exam?
2. (a) In 2000/01 the UK’s public expenditure was 37 per cent of GDP.
This is forecast to increase to over 45 per cent of GDP by 2009/10.
Examine the likely economic effects, apart from increased taxation, of
this trend. (20)
(b) Assess the economic effects of a significant increase in taxation in
the UK economy. (30)
3. (a) Examine the likely factors which affect decisions by multinationals
to invest in EU countries. (20)
(b) The UK has been the largest recipient of inward foreign investment
within the EU in recent years. Evaluate the benefits of such foreign
investment for the UK economy. (30)
Mark scheme – 20 mark question
Level
Mark
Descriptor
Level 1
1-7
Identification of points only
Level 2
8 - 10
Consideration of 1 factor with 1 evaluative
points or 2 points with no evaluation
Level 3
11 – 14
Consideration of 2 factors with 1 evaluative
points or 3 points with no evaluation
Level 4
15 – 16
Consideration of 3 factors with 1 evaluative
point
Level 5
17- 20
Consideration of 3 factors with 2 evaluative
points
Mark scheme – 30 mark question
Level
Mark
Descriptor
Level 1
1 - 11
Identification of points only
Level 2
12 - 15
2 factors with 2 evaluative points or 3 points
with 1 evaluation comment
Level 3
15 - 21
3 factors with 2 evaluative points
Level 4
22 - 25
4 factors with 2 evaluative points
Level 5
26 - 30
4 factors with at least 3 evaluative points

1. (a) Assess the impact on the world
economy of the growth of regional trade
blocs. (20)

(b) Examine the likely impact of global
recession on interdependence between
countries in the world economy. (30)
Assess the impact on the world economy of the
growth of regional trade blocs. (20)

Possible areas of discussion include:

Understanding of trade blocs

Trade creation within blocs based on law of comparative advantage;
Significant because of the increase in number and size of trading blocs

Increase in economic growth and employment But benefits are not
distributed evenly – countries outside trading blocs might be worse off

Trade diversion associated with the use of protectionist measures
against non-members – distortion of comparative advantage However,
impact depends on the level and range of trade restrictions

Other evaluation could include:
Short run/long run implications
Prioritisation of factors


Examine the likely impact of global recession on
interdependence between countries in the world
economy. (30)

Possible areas of discussion
include:

Evaluation points could
include:

Decline in world output
associated with decline in
exports and imports – fall in
trade as a proportion of world
GDP (Could count as two
points if imports and exports
are dealt with Separately)
Less FDI
Reduced capital movements
between countries
Reduction in labour
movements between countries
Increase in protectionism

Magnitude of effect: since
countries are more integrated,
impact is likely to be greater
How impact will differ between
countries depending on their
degree of integration into the
world economy
Whether recession is brief or
lengthy
Other factors may be more
significant in influencing
interdependence e.g.
communication costs;
reduction in trade barriers








2. (a) In 2000/01 the UK’s public expenditure
was 37 per cent of GDP. This is forecast to
increase to over 45 per cent of GDP by
2009/10. Examine the likely economic
effects, apart from increased taxation, of
this trend. (20)

(b) Assess the economic effects of a
significant increase in taxation in the UK
economy. (30)
2. (a) In 2000/01 the UK’s public expenditure was 37 per cent
of GDP. This is forecast to increase to over 45 per cent of
GDP by 2009/10. Examine the likely economic effects, apart
from increased taxation, of this trend. (20)

Factors include:

Improved public services But: money might go on increased wages or
administration


Crowding Out: resource and financial But: not a problem if unemployed
resources

Reduction in freedom and choice But: might enable the poor to experience more
freedom and choice

Danger of inflation if increased expenditure is financed by borrowing from the
Bank of England But: other factors might reduce inflationary pressures e.g.
China

Increased employment

Increased fiscal deficit
(b) Assess the economic effects of a significant
increase in taxation in the UK economy. (30)








Effects include:
Decrease in aggregate demand and real output But: depends on what is happening to
public expenditure
Possibility of a lower rate of inflation But: could lead to inflationary wage demands
Disincentives to work if income tax is increased Depends on relative strength of
substitution and income effects
Improvement in the balance of trade in goods and services But: other factors might be
more significant in
influencing the balance of trade
Reduction in fiscal deficit and so less need for borrowing But: higher unemployment might
have a
detrimental effect on the public finances. Also Laffer curve analysis.

Significance of tax increases relative to other countries – this is likely to be used as an
evaluative point.

Impact on distribution of income

3. (a) Examine the likely factors which affect
decisions by multinationals to invest in EU
countries. (20)

(b) The UK has been the largest recipient of
inward foreign investment within the EU in
recent years. Evaluate the benefits of such
foreign investment for the UK economy. (30)
3. (a) Examine the likely factors which affect
decisions by multinationals to invest in EU
countries. (20)














Factors include:
wage costs; level of National Minimum Wage
non-wage costs e.g. national insurance contributions; health and safety
regulations; environmental regulations; VAT; parental leave; planning
regulations
government grants
level of corporate taxes
size/quality/flexibility of the workforce
strength of EU economies e.g. expectation of gaining a return on investment
quality of infrastructure
desire to gain access to EU market and to avoid tariffs
membership of single currency
Evaluation points:
prioritisation of factors e.g. significance of wage costs
consideration of differences in attractiveness of particular EU countries for FDI
distinction between short and long run issues
(b) The UK has been the largest recipient of inward
foreign investment within the EU in recent years.
Evaluate the benefits of such foreign investment for
the UK economy. (30)

Possible benefits include:


Credit on B/P capital account
Future benefit on B/P current
account if exports rise and
imports fall
For economic growth:
multiplier effects
Increased employment







New methods of production
and working practices: impact
on UK producers


Tax revenue to government

Evaluation points might
include:
Negative impact on B/P
(investment income to
shareholders abroad)
Increased competition for
domestic producers:
unemployment? Net employment
affect might be small
Increased dependence of
economy on decisions made by
managers overseas. Significant if
investment is withdrawn in the
future.
Impact on the economy might be
small (if there is little value added
in the UK)
FDI is a small % of GDP.
Mark scheme – 20 mark question
Level
Mark
Descriptor
Level 1
1-7
Identification of points only
Level 2
8 - 10
Consideration of 1 factor with 1 evaluative
points or 2 points with no evaluation
Level 3
11 – 14
Consideration of 2 factors with 1 evaluative
points or 3 points with no evaluation
Level 4
15 – 16
Consideration of 3 factors with 1 evaluative
point
Level 5
17- 20
Consideration of 3 factors with 2 evaluative
points
Mark scheme – 30 mark question
Level
Mark
Descriptor
Level 1
1 - 11
Identification of points only
Level 2
12 - 15
2 factors with 2 evaluative points or 3 points
with 1 evaluation comment
Level 3
15 - 21
3 factors with 2 evaluative points
Level 4
22 - 25
4 factors with 2 evaluative points
Level 5
26 - 30
4 factors with at least 3 evaluative points