Chinese trade surplus hits record

This article describes Chinas record trade surplus, but explains why there may be harder times ahead for the Chinese economy.

Read it and answer the questions below. Read it and answer the questions below. Level 1 – Level 4 are questions based on IB standards where

• Level 1: Knowledge
• Level 2: Application
• Level 3: Analysis
• Level 4: Evaluation

Words in bold (define, explain…) have a specific meaning in the IB Diploma Program (DP). Thees meanings are in Glossary of Command Terms Section of the IBO DP Business and Management Guide available at the OCC and from my website

Level 1: Knowledge
Q1: Based on the article, define the term ‘Trade Surplus”, and write down how to calculate it

Level 2: Application
Q2a: Explain why Chinas Trade surplus may fall in the near future.
Q2b: Explain why China’s Government might choose to cut interest rates because inflation has fallen.

Level 3: Analysis
Q3: Analyse how conditions in other world economies have impacted Chinese fiscal policy measures

Level 4: Evaluation
Q4: To what extent does this article support the argument for China being part of the global economy?