2008 H2 ECONS CASE STUDY

Trade in goods increased o keeps prices low – freer movement in capital flows o increase in FDI – freer movement in labour flows o increased factor mobility? It is very important to show that capital account policies have eventual current account consequences. Singapore’s pattern of trade can also be examined geographically: Develop CA in areas of higher value added to tap into growing world incomes and to avoid goods such as those primary products exported by many developing countries where prices are volatile. This will reduce the price of exports to EU markets. Level 3 answers are also able to clearly illustrate the pricing setting behavior of a perfect competitive firm in the short run and go on to explain how due to the lack of entry barriers, that the relative ease of entry and exit of new firms led to a situation of only normal profits in the long run.

However, there remains economic inefficiency in the market due to relatively small number of energy firms in the market and the business strategies employed. If China is indeed dumping, then action to prevent dumping will be justified as it protects EU consumers in the LR where by dumping had succeeded in increasing Chinese producer power in the EU market. They can practise monopoly pricing which causes allocative inefficiency. In retaliation EU imposed quotas on textile imports from China. Also, the data is lacking. In such cases we do not import and export identical goods; we import and re-export what we really export is the services of the PSA!

However, the SWA is right by saying that such tariffs harm Indian consumers causing them to pay more and have less choice.

2008 h2 econs case study

With faster broadband internet connections, this increases the ease of using iPods and the players and hence a greater need for PC, etc. Body There is a need to contrast between a market sfudy with strong barriers to entry versus one. Despite UK price o f natural gas being three times more than that in Netherlands, gas pipeline connecting Netherlands and UK was 3?

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H2 Economics Case Study Questions

For answers that u2 very descriptive and only able to show the link between barriers to entry and. We tend to take a long view of the BOP and even in crisis periods such as early csae not react much with exchange rate changes cutspreferring instead to encourage foreign and a few domestic firms to remain here by offering lower wages subsidised for the very lowest wages and better tax breaks.

However, there remains economic inefficiency in the market due to relatively small number of energy firms in the market and the business strategies employed. Crucially, FDI was encouraged, partly by the provision of complementary infrastructure and labour skills, partly czse a tax friendly policy to new foreign investment, and partly by a flexible labour market.

2008 A-Levels H2 Economics Case Study

This will reduce the price of exports to EU markets. Case of dumping Need to know: Cost of producing shoes in China, 2.

Singapore’s pattern of trade can also be examined geographically: It has difficulty explaining intra-industry trade unless we take differing brands of products as different goods. But is China is indeed dumping? In addition, with greater competition, the market structure can evolve from one that is oligopolistic in nature to one that veers toward monopolistic competition. Evaluate that this is not the reason: At the same time, the yuan showed an appreciation.

Moreover, tightly regulated energy markets in other European countries hinder the attainment of economic efficiency in Europe? In curing a recession, to what extent can a rise in G offset the fall in CD in big economies like US and the fall in X in extremely small and open economies sthdy Spore?

2008 h2 econs case study

This involves increasing expenditure on human capital and strategic alliances with firms 200 can make use of such labour, by offering ‘supply side support’. The UK energy market is also hindered by the fact that it is operating in the midst of Europe? Holding other factors constant, an increase in price of other fuels will result in an cqse in demand of electricity – Applying the concepts of PED and CED in context of case data? Establish what is meant by globalisation: Although electricity comprises a higher weight in the UK Retail Prices Index as seen in Table 2, this proportion has been falling over the period.

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To score for this question, students need to bring in AC curves as this will build on the depth of analysis of the question, and enables the discussion to consider the short and long run.

Using Extract 1 and 2: Thus, the protection measure by India is not economically justified.

2008 h2 econs case study

In such a situation, equilibrium price and quantity do not respond to changing costs which results in allocative inefficiency. Dumping usually occurs to drive domestic producers out of the market in order to establish monopoly power in the future.

Although the question does not specify a context, the use of examples will better illustrate and enhance the quality of discussion L3 and E2 marks involved. UK although pipeline was available and running only half-full – Excess stjdy highlighted in Extract 2 where there was lack of gas storage facility; and – Low input costs not passed on to consumers due to rigidity in contract for domestic gas.

Answers to H2 Economics GCE a Level Exam

Economics A Advanced… Documents. India does not have comparative advantage in the production stuudy whiskey as it is unable to compete against foreign competitors. Your answer should clarify that labour and capital is not a homogeneous factor of production, and so the labour input from which we derive CA will depend upon the type of labour used in certain production processes. P 25R o cc.

Road congestion resulting in negative externalities due to imperfect information; OR.