2012 H2 Economics Term 4 Revision Week 4

Topic: International Economics

Question 1: VJC 2010 Preliminary Exam
Despite the many risks of economic globalisation, most countries have been choosing to
globalise their economies to a greater extent. This has resulted in significant changes in the
patterns of international trade.
a. Account for the possible changes in a countrys trade pattern. [10]

b. Discuss whether countries should globalise their economies despite the many risks of
economic globalisation. [15]


Question 2 : HCI 2012 Preliminary Exam
In order to improve international competitiveness in the areas of trade and foreign
investment, Singapore is trying to shift towards improving labor productivity, instead of relying
on foreign workers.

Discuss whether a shift towards improving labour productivity will help Singapore achieve
international competitiveness. [25]


Question 3 : 2011 H2 Econ A Level Essay Qn 6

The Singapore economy is open to the world, in trade and investment. This is both a matter
of policy and necessity because of our size and limited resources. In 2008, our trade to GDP
ratio was 360%, the highest in the world.
(Ministry of Trade and Industry, Singapore, 2009)

Discuss whether the openness of the economy is beneficial or harmful to the standard of
living in Singapore. [25]


Question 4 : DHS 2011 Preliminary Exam

Whenever the government announces a rising trade deficit, the media routinely declare it
"bad news" that the trade gap has "worsened" no matter how good the accompanying
economic news may be on inflation, employment, and growth.
- Cato Institute

(a) Explain how a rising trade deficit could impact the circular flow of income. [10]

(b) Discuss whether a government should actively pursue policies to correct a trade
deficit. [15]


Question 5 : VJC 2012 Preliminary Exam

A weakening of the external value of a countrys currency is always detrimental to its
economy.

With reference to the Singapore economy, how far do you agree with the above statement?
[25]
Instructions to students:
Humanities Room & LT 3: Prepare detailed essay outline for questions 4 & 5
LTs 4 & 5: Prepare detailed essay outline for questions 1, 4 & 5
LTs 1 & 2: Prepare detailed essay outline for all questions