Evaluate macroeconomic policies that could be used to increase international competitiveness in the UK’s export markets
Edexcel A-Level Economics 25 Mark Question
In 2022 the value of UK exports fell by 14% compared with 2020. In contrast, the global average increase in exports was 8.2% over the same time period. The UK’s competitiveness also fell, dropping five places from 18th in 2021 to 23rd in 2022 in the world competitiveness rankings. Evaluate macroeconomic policies that could be used to increase international competitiveness in the UK’s export markets. (June 2023)
Plan
- Paragraph 1
- Argument: one policy to increase competitiveness is lower interest rates
- Diagram: exchange rates diagram
- Evaluation: lower interest rates can also cause inflation, which can reduce competitiveness
- Paragraph 2
- Argument: another policy to increase competitiveness is supply-side policies
- Diagram: right shift in LRAS
- Evaluation: time lag and cost
- Conclusion: lack of control over exchange rates means that it is important to plan ahead with supply side policies
A-Level Economics Tutoring
I offer one-to-one and small group A-Level Economics tutoring for students across the UK and internationally. With 87+ five-star Google reviews and tutoring experience since 2017, I specialise in helping students understand difficult concepts and improve their exam technique.