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?

Into a Slump

Instructions
Read this article from the Economist magazine on how the current financial crisis has impacted the US, European and Japanese economies, and then answer the following questions:

PARA1 (IT IS startling how….)
Q1) Use the information in Paragraph 1 to briefly explain how the current financial crisis is impacting the 4 key macroeconomic objectives.

PARA 2 (The economic news….)
Q2) Use the information in Paragraph 1 to briefly explain what is happening to primary, secondary and tertiary level activity in Europe.

PARA 3 (Such has been the severity….)
Q3) Based on what you have read so far…explain briefly why
“The price of a barrel of oil sank below $65 in response to the latest bad economic news, despite a decision by OPEC on Friday to cut production by 1.5m barrels a day.”

PARA 4 (Not every currency can go down….)
Q4) Explain the impact of the current economic crisis on the Japanese economy

Key facts: The global economy

This excellent BBC resource on Globalisation will give you an opportunity to

• Learn some important terms to do with globalisation
• Study some of the key reasons for globalisation
• Identify some of the winners and losers from globalisation
• Assess whether globalisation has or has not been a benefit
  

Instructions:
Click on this link Key facts: The global economy. Read ALL pages from this link to answer the following questions:

1. Define the terms “globalisation”, “tariff” and “foreign direct investment.
2. Describe the characteristics of globalisation (mentioned on the Introduction page).
3. Describe reasons that have caused the pace and scope of Globalisation to accelerate in recent years (mentioned on the Introduction page).
4. Explain with a suitable diagram, how cutting tariffs can boost trade in manufactured goods between rich countries (mentioned on the Trade page).
5. Analyse why it has been harder to reduce tariffs for primary products such as agriculture than it has been to reduce tariffs for manufactured products (mentioned on the Trade page).
6. There are winners and losers as a result of globalisation. In your view, to what extent has globalisation been successful? (mentioned on the Money page and Rich and Poor page).