tutor2u

Economics Revision Map

EdExcel A2 Economics Unit 6
The UK in a Global Economy
This revision map is designed to help you plan your revision of the Edexcel A2 Economics examination (Unit 6) on The UK in a
Global Economy It maps the EdExcel syllabus against a wide range of free revision resources that you can find on Tutor2u. Each
resource is hyperlinked – so you open the resource direct from this revision map.

This Revision Map is best used in conjunction with Tutor2u’s award-winning AS Economics Course Companion – the market leading
revision guide for economics – and our range of Q&A Rapid Revision Guides for Economics. You can order these products from our
online store

©tutor2u limited 2003; all rights reserved

www.tutor2u.net

Online Learning Resource of the Year 2003

HOW TO USE THIS REVISION MAP

This revision map provides links to a selection of free resources on tutor2u for students taking the EdExcel A2 Unit 6 examination.

The map is not intended to provide a complete list of all the revision you should do before the exam. But hopefully it will provide some
useful materials that will help supplement your teacher’s resources and other materials you are using for revision.

We recommend highlighting or marking each resource once you have visited the site.

We also recommend trying the interactive quizzes fairly often during your revision – so that you can track your progress. There are
over 1,000 AS standard questions for Economics students alone on tutor2u – plenty to keep you tested!

Please note, you will need a recent version of your favourite internet browser (we recommend Internet Explorer) to get full benefit from
the interactive quizzes.

Please send feedback about this revision map to Jim Riley at jimriley@tutor2u.net so that we can develop the resource for future
students.

Best wishes and GOOD LUCK from everyone at Tutor2u

TABLE OF CONTENTS

1 Syllabus Resource Links ...............................................................................................................................................................................................................4

1.1 Factors Contributing to Globalisation........................................................................................................................................................................................4
1.2 International Exchange .............................................................................................................................................................................................................4
1.3 Trade Liberalisation and Protection ..........................................................................................................................................................................................4
1.4 Sources of possible conflict between trading blocs and the role of the World Trade Organisation (WTO)..............................................................................4
1.5 The Balance of Payments .........................................................................................................................................................................................................5
1.6 International Competitiveness...................................................................................................................................................................................................5
1.7 The UK’s Changing International Competitive Position ............................................................................................................................................................5
1.8 Balance of Payments Disequilibrium ........................................................................................................................................................................................6
1.9 Exchange Rate Systems...........................................................................................................................................................................................................6
1.10 European Monetary Union....................................................................................................................................................................................................6
1.11 Inward investment by MNC’s ................................................................................................................................................................................................7
1.12 External Shocks to the Global Economy ..............................................................................................................................................................................7
1.13 Public Expenditure and Taxation ..........................................................................................................................................................................................7
1.14 The Working of Fiscal, Monetary and Supply Side Policies .................................................................................................................................................8
Tick When
Covered Revision Notes Presentations Interactive Quizzes

1 SYLLABUS RESOURCE LINKS

This unit develops the content of units 1 and 3 by examining the position of the UK in the context of the world economy. It focuses on international trade and
exchange rate issues. At the end of this unit, students should be able to evaluate the macroeconomic performance of the UK in a European Union and global
perspective
1.1 Factors Contributing to Globalisation
Students should be able to:
- Understand the significance of the factors that have enhanced the interdependence of economies, e.g. the reduction in trade barriers, capital mobility, the
growth of MNCs and technological developments, e.g. the Internet.
Globalisation and the UK Economy Globalisation and Competitiveness International Trade
Globalisation and the WTO
Globalisation and Development
1.2 International Exchange
Students should be able to:
- Understand the importance of trade between developed economies, relative to world trade as a whole
Economic Growth & International Trade International Trade and Protectionism International Trade
Objectives of Development
Finance, Debt and the Terms of Trade
1.3 Trade Liberalisation and Protection
Syllabus content covers:
- Reasons for tariffs, quotas and non-tariff barriers and the consequences of their use

Students should be able to:

- Explain the global efforts to reduce tariff barriers and analyse the impact of protectionist measures on resource use in an international context, e.g. the impact of
the CAP on world trade in commodities
Protectionism – Barriers to Trade International Trade and Protectionism International Trade
Economic Arguments for Import Controls
1.4 Sources of possible conflict between trading blocs and the role of the World Trade Organisation (WTO)
Students should be able to:
- Explain how membership of the WTO constrains the use of protectionist policies by countries particularly in times of global recession
Economics of Development International Trade and Protectionism International Trade
Tick When
Covered Revision Notes Presentations Interactive Quizzes
Globalisation and the WTO
Development Policy and the WTO
Structural Issues and Unemployment
Sustainability of Development
1.5 The Balance of Payments
Students should be able to:
- Understand the main elements of the current account. Only a brief knowledge of capital transactions is required
- Understand recent trends in the UK’s accounts (links with unit 3).
Balance of Trade in Goods Balance of Payments
Balance of Trade in Services Foreign Investment in the UK
Globalisation and the UK Economy
Inward investment into the UK
1.6 International Competitiveness
Students should be able to:
- Understand various measures of the competitive position of the leading countries in international trade, e.g. unit costs and relative export prices
Globalisation and the UK Economy Globalisation and Competitiveness
1.7 The UK’s Changing International Competitive Position
Syllabus content covers:
- Factors affecting international competitiveness and government policies to enhance the UK’s relative position

Students should be able to:

- Make an appraisal of the competitiveness of British industry in both home and overseas markets
- Explain the UK’s export performance and import penetration
- Understand how successive UK governments have taken measures to enhance competitiveness, e.g. through deregulation measures, encouragement of
inward investment and the enhancement of labour skills
International Competitiveness Globalisation and Competitiveness
Tick When
Covered Revision Notes Presentations Interactive Quizzes

1.8 Balance of Payments Disequilibrium

Syllabus content covers:
- Policy remedies including:
÷ Exchange rate adjustment
÷ Demand management
÷ Supply side policies.

Students should be able to:

- Evaluate the impact of these alternative policy measures (links with unit 3).
Government Policy & Balance of Payments Balance of Payments
1.9 Exchange Rate Systems
Syllabus content covers:
- Fixed and floating rates
- Factors affecting exchange rates
- Exchange rates as a policy instrument

Students should be able to:

- Explain how exchange rates are determined under a system of floating rates (links with unit 1)
- Understand influences on exchange rates such as relative interest rates, relative inflation rates and speculative capital flows
- Explain the effects of changes in exchange rates on the level of economic activity in different countries
Macroeconomic Policy and Exchange Rates Economics of Exchange Rates Exchange Rates
Economic Effects of a Depreciating Currency
Economic Effects of a Strong Currency
1.10 European Monetary Union
Syllabus content covers:
- The costs and benefits of monetary union in the EU

Students should be able to:

- Evaluate the implications of monetary union for the conduct of monetary and fiscal policies by individual countries in Europe
Role of the European Central Bank Single European Market
Tick When
Covered Revision Notes Presentations Interactive Quizzes
Arguments Against Euro Membership European Single Currency
Arguments For Euro Membership Euro Zone Macroeconomic Developments
Tax Harmonisation in the European Union
1.11 Inward investment by MNC’s
Students should be able to:
- Analyse the role, benefits and disadvantages of capital inflows from MNCs in an EU context
Inward investment into the UK Foreign Investment in the UK
1.12 External Shocks to the Global Economy
Students should be able to:
- Examine adverse impacts on the world level of economic activity, e.g. higher oil prices
Macroeconomic Shocks (PDF Briefing file) Oil Prices and the UK Economy
1.13 Public Expenditure and Taxation
Syllabus content covers:
- Different types of taxes
- The impact of public expenditure and taxation on income distribution
- Public sector borrowing
- International comparisons of public finances

Students should be able to:

- Explain reasons for the changing size and composition of public expenditure in the UK
- Evaluate the relative merits of direct and indirect taxation and examine the effects of changes in fiscal policy for different groups in the UK
- Explain the factors influencing the size of public sector borrowing
- Explain and evaluate the implications of differences between countries in their public finances
Basic Economics of Taxation Indirect Taxes Fiscal Policy
Direct Taxation Government Spending
Indirect Taxation Budget Deficits and Budget Surplus
Direct versus Indirect Taxation Fiscal Policy and the Macroeconomy
Are Indirect Taxes Regressive? Fiscal Policy and the Taxation System
Principles of a Good Tax System
Tick When
Covered Revision Notes Presentations Interactive Quizzes

1.14 The Working of Fiscal, Monetary and Supply Side Policies

Students should be able to:
- Appraise policy instruments in achieving policy objectives and evaluate associated problems that may be encountered, e.g. time lags; the accuracy of economic
data on the state of the economy
Tax Changes and the Economy Government Spending Fiscal Policy
Fiscal Policy and Demand Management Budget Deficits and Budget Surplus
Comparison of Monetary and Fiscal Policy Fiscal Policy and the Macroeconomy
Fiscal Policy and Supply-Side Fiscal Policy and the Taxation System