O Level Economics 2281 · Topic 6

International trade and globalisation: past paper questions

144 real questionsasked in 10 of the last 10 exam series2019–2026usually: Discuss, Analyse, Explain, Define, Identify

Real questions on international trade and globalisation

The newest 20 of 55 written questions, plus 89 multiple-choice. Open one to see it on the real paper.

2281/22 · May/June 2026 · Q1a[1]
Calculate Kuwait’s current account surplus as a percentage of its GDP.
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2281/22 · May/June 2026 · Q1b[2]
Identify two items that appear in Kuwait’s trade in services.
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2281/22 · May/June 2026 · Q1h[6]
Discuss whether or not a new port will benefit an economy. Section B Answer any three questions. Each question is introduced by stimulus material. In your answers you may refer to the material and / or other examples you have studied.
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2281/22 · May/June 2026 · Q3c[6]
Analyse how a fall in a country’s foreign exchange rate can cause inflation.
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2281/23 · October/November 2025 · Q4a[2]
Define primary income.
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2281/23 · October/November 2025 · Q4d[8]
Discuss whether or not imposing import quotas will reduce a trade in goods deficit.
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2281/21 · May/June 2025 · Q5b[4]
Explain two disadvantages of import tariffs.
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2281/21 · May/June 2025 · Q5d[8]
Discuss whether or not having a floating exchange rate benefits an economy.
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2281/22 · October/November 2024 · Q1b[2]
Identify two components of the current account of Jordan’s balance of payments.
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2281/22 · October/November 2024 · Q2d[8]
Discuss whether or not free trade will increase economic growth.
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2281/22 · October/November 2024 · Q3a[2]
Define foreign exchange market.
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2281/22 · October/November 2024 · Q3c[6]
Analyse how the macroeconomic aims of economic growth and balance of payments stability may conflict.
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2281/22 · October/November 2024 · Q5b[4]
Explain two reasons why countries with a good transport system often have a high GDP.
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2281/23 · October/November 2024 · Q5c[6]
Analyse the possible causes of a fall in a country’s foreign exchange rate.
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2281/22 · May/June 2024 · Q1a[1]
Calculate Tunisia’s balance on the current account of its balance of payments.
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2281/22 · 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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2281/22 · October/November 2023 · Q1c[2]
Explain one advantage of an economy specialising.
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2281/22 · October/November 2023 · Q2c[6]
Analyse how a government could reduce protectionism and move towards free international trade.
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2281/22 · October/November 2023 · Q5d[8]
Discuss whether or not an increase in exports will benefit an economy.
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2281/23 · October/November 2023 · Q1f[5]
Analyse the relationship between countries’ trade in goods and services balances and their current account balances.
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What examiners said

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, 2281/22 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, 2281/22 Q2(c) (Cambridge)

There were some rather brief answers to this question. A relatively high proportion either did not explain the points they made or only explained the points in a limited way. There were, however, some perceptive answers which explained points in depth. An example of a Level 1 answer: Exports are the selling of goods made in the country to another country. An increase in exports may benefit a cou...
— Examiner report, October/November 2023, 2281/22 Q5(d) (Cambridge)

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Practise international trade and globalisation

In the syllabus

6.1 International specialisation

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

6.2 Globalisation, free trade and protection

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.

6.3 Foreign exchange rates

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.

6.4 Current account of balance of payments

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.

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