IGCSE Economics (9–1) 0987 · Topic 6

International trade and globalisation: past paper questions

106 real questionsasked in 9 of the last 10 exam series2020–2025usually: Analyse, Discuss, Explain, Identify, Calculate

Real questions on international trade and globalisation

The newest 20 of 45 written questions, plus 61 multiple-choice. Open one to see it on the real paper.

0987/22 · October/November 2025 · Q5a[2]
Identify two motives for a firm dumping some of its products in a foreign market.
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0987/22 · October/November 2025 · Q5c[6]
Analyse how a government subsidy could help to protect an infant industry against foreign competition.
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0987/22 · October/November 2025 · Q5d[8]
Discuss whether or not cuts in taxes will reduce a deficit on the current account of a country’s balance of payments.
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0987/21 · May/June 2025 · Q1c[2]
Explain what effect an increase in tourism may have on Gabon’s current account of the balance of payments.
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0987/21 · May/June 2025 · Q5a[2]
Identify two benefits an MNC may provide for its home country.
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0987/21 · May/June 2025 · Q5b[4]
Explain two disadvantages of import tariffs.
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0987/21 · May/June 2025 · Q5d[8]
Discuss whether or not having a floating exchange rate benefits an economy.
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0987/22 · May/June 2024 · Q1a[1]
Calculate Tunisia’s balance on the current account of its balance of payments.
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0987/22 · May/June 2024 · Q4c[6]
Analyse the advantages an economy may gain from having some of its people working in other countries.
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0987/22 · October/November 2023 · Q1b[2]
Identify two benefits the Honduran economy could gain from a growth in the US economy.
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0987/22 · October/November 2023 · Q1c[2]
Explain one advantage of an economy specialising.
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0987/22 · October/November 2023 · Q2c[6]
Analyse how a government could reduce protectionism and move towards free international trade.
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0987/22 · October/November 2023 · Q5d[8]
Discuss whether or not an increase in exports will benefit an economy.
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0987/21 · May/June 2023 · Q1b[2]
Identify two substitutes for coal.
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0987/21 · May/June 2023 · Q1f[5]
Analyse whether large coal-producing countries are likely to be net exporters of coal.
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0987/21 · May/June 2023 · Q3c[6]
Analyse how an increase in labour productivity in a country can increase a surplus on the current account of its balance of payments.
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0987/21 · May/June 2023 · Q4d[8]
Discuss whether or not a rise in a country’s foreign exchange rate would benefit its economy.
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0987/22 · May/June 2023 · Q4b[4]
Explain two causes of an increase in the value of a country’s floating foreign exchange rate.
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0987/22 · May/June 2023 · Q5c[6]
Analyse the reasons for imposing tariffs on imports.
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0987/22 · May/June 2023 · Q5d[8]
Discuss whether or not a country with a high economic growth rate will have a deficit on the current account of its balance of payments.
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What examiners said

Most candidates answered this well. The most common benefits identified were an increase in exports sold to the US and more money sent back to relatives by Honduran workers employed in the US.
— Examiner report, October/November 2023, 0987/22 Q1(b) (Cambridge)

Not all candidates paid attention to the command word ‘Explain’. As a result they identified two advantages. A number of other candidates wrote about the advantages of specialisation in general rather than in the context of the information provided. Most of those candidates that did take into account the information provided, focused on the greater skills that may arise from specialisation. A numb...
— Examiner report, October/November 2023, 0987/22 Q1(c) (Cambridge)

Most candidates were able to describe some methods of protection. The strongest answers directly addressed the question by analysing how, for example, the removal or reduction of a tariff, could reduce the price of imports which could result in a rise in the exchange of imports and exports.
— Examiner report, October/November 2023, 0987/22 Q2(c) (Cambridge)

Practise this topic

Answer these questions online and get each one marked against the official mark scheme, with what you missed and how to fix it.

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In the syllabus

1 0455.6.1.1 — specialisation at a national level The basis for specialisation at national level in broad terms of: superior resource allocation and/or che

specialisation at a national level The basis for specialisation at national level in broad terms of: superior resource allocation and/or cheaper production methods.
advantages and disadvantages of For consumers, firms and the economy. specialisation at a national level.

2 0455.6.1.2 — advantages and disadvantages of For consumers, firms and the economy. specialisation at a national level.

advantages and disadvantages of For consumers, firms and the economy. specialisation at a national level.

3 0455.6.2.1 — definition of globalisation.

definition of globalisation.
role of multinational companies (MNCs) MNCs and the costs and benefits to their host and home countries.
the benefits of free trade The benefits for consumers, producers and the economy in a variety of countries.
methods of protection Tariffs, import quotas, subsidies and embargoes.
reasons for protection Including infant industry, declining industry, strategic industry and avoidance of dumping.
consequences of protection Effectiveness of protection and its impact on the home country and its trading partners.

4 0455.6.2.2 — role of multinational companies (MNCs) MNCs and the costs and benefits to their host and home countries.

role of multinational companies (MNCs) MNCs and the costs and benefits to their host and home countries.

5 0455.6.2.3 — the benefits of free trade The benefits for consumers, producers and the economy in a variety of countries.

the benefits of free trade The benefits for consumers, producers and the economy in a variety of countries.

6 0455.6.2.4 — methods of protection Tariffs, import quotas, subsidies and embargoes.

methods of protection Tariffs, import quotas, subsidies and embargoes.

7 0455.6.2.5 — reasons for protection Including infant industry, declining industry, strategic industry and avoidance of dumping.

reasons for protection Including infant industry, declining industry, strategic industry and avoidance of dumping.

8 0455.6.2.6 — consequences of protection Effectiveness of protection and its impact on the home country and its trading partners.

consequences of protection Effectiveness of protection and its impact on the home country and its trading partners.

9 0455.6.3.1 — definition of foreign exchange rate Floating and fixed systems.

definition of foreign exchange rate Floating and fixed systems.
determination of foreign exchange rate in The demand for and supply of a currency in the foreign exchange market foreign exchange market and the determination of the equilibrium foreign exchange rate.
causes of foreign exchange rate fluctuations Including changes in demand for exports and imports, changes in the rate of interest, speculation, and the entry or departure of MNCs.
consequences of foreign exchange rate The effects of foreign exchange rate fluctuations on fluctuations export and import prices and spending on imports and exports via the PED.
floating and fixed foreign exchange rates The difference between, and the advantages and disadvantages of, a floating foreign exchange rate and a fixed foreign exchange rate system.

10 0455.6.3.2 — determination of foreign exchange rate in The demand for and supply of a currency in the foreign exchange market foreign exchange market and

determination of foreign exchange rate in The demand for and supply of a currency in the foreign exchange market foreign exchange market and the determination of the equilibrium foreign exchange rate.

11 0455.6.3.3 — causes of foreign exchange rate fluctuations Including changes in demand for exports and imports, changes in the rate of interest, speculati

causes of foreign exchange rate fluctuations Including changes in demand for exports and imports, changes in the rate of interest, speculation, and the entry or departure of MNCs.

12 0455.6.3.4 — consequences of foreign exchange rate The effects of foreign exchange rate fluctuations on fluctuations export and import prices and spendin

consequences of foreign exchange rate The effects of foreign exchange rate fluctuations on fluctuations export and import prices and spending on imports and exports via the PED.

13 0455.6.3.5 — floating and fixed foreign exchange rates The difference between, and the advantages and disadvantages of, a floating foreign exchange rate

floating and fixed foreign exchange rates The difference between, and the advantages and disadvantages of, a floating foreign exchange rate and a fixed foreign exchange rate system.

14 0455.6.4.1 — structure The components of the current account of the balance of payments – trade in goods, trade in services, primary income and secondary

structure The components of the current account of the balance of payments – trade in goods, trade in services, primary income and secondary income. Calculation of deficits and surpluses on the current account of the balance of payments and its component sections.
causes of current account deficit and surplus Reasons for deficits and surpluses.
consequences of current account deficit and Impact on GDP, employment, inflation and foreign surplus exchange rate.
policies to achieve balance of payments The range of policies available to achieve balance of stability payments stability and how effective they might be.

15 0455.6.4.2 — causes of current account deficit and surplus Reasons for deficits and surpluses.

causes of current account deficit and surplus Reasons for deficits and surpluses.

16 0455.6.4.3 — consequences of current account deficit and Impact on GDP, employment, inflation and foreign surplus exchange rate.

consequences of current account deficit and Impact on GDP, employment, inflation and foreign surplus exchange rate.

17 0455.6.4.4 — policies to achieve balance of payments The range of policies available to achieve balance of stability payments stability and how effective

policies to achieve balance of payments The range of policies available to achieve balance of stability payments stability and how effective they might be.

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